Financial Problems Shut Pinnacle Down
July 31, 2000
After a bank decision to cancel the company’s line of credit, Pinnacle Transportation Services was forced to close its doors, putting about 100 truckers still due a paycheck out of work.
Firstar Bank, Milwaukee, Wis., refused to honor about $158,000 in payroll checks for the Little Rock, Ark.-based company’s drivers and other employees. According to Associated Press reports, about 50 angry truck drivers gathered Friday at Pinnacle's office demanding their checks, but never got them.
Pinnacle owner Zill Coleman said the company was profitable until this year and has enough assets to settle most of its debts. He assured drivers that they would get their pay.
Coleman, who has operated the company since 1973, said high fuel prices, rising driver wages and computer system failures all contributed to the company’s financial problems. Pinnacle employs 101 drivers and operates 104 trucks.
Pinnacle’s attorney said the company was "overcollateralized" and that the bank wouldn’t issue any more money from the company’s accounts. The company plans to request an emergency court hearing this week to try to force the bank to honor the payroll checks.
Firstar decline to comment to the AP, citing the bank’s policy of keeping customer accounts confidential.