The Owner-Operator Independent Drivers Association (OOIDA) is asking the U.S. Bankruptcy Court in Danville, Ill., to support the claims of truck drivers in dealing with the involuntary bankruptcy of CX Roberson and PFT Roberson.
In a memorandum sent to the court, OOIDA said the two companies, former divisions of Roberson Transportation, owe drivers more than $1.6 million that was supposed to be held in escrow by the trucking companies. OOIDA said none of that money has been returned to the drivers.
Creditors who filed the involuntary bankruptcy petition in late summer want the bankruptcy judge to keep the case alive for the sake of truckers and other unsecured creditors, according to news reports.
"Without a bankruptcy case and an independent trustee, the unsecured creditors will receive nothing and will have no hope of receiving anything," the creditors claimed in response to the companies' motion to dismiss the case.
Attorneys for the companies said it was best to leave the matter in the hands of a private trustee hired by Roberson.
The attorneys said the private trustee had liquidated most of the assets and had contacted many former employees and potential creditors, adding it would be "extremely time-consuming, expensive and inefficient" for a federal bankruptcy trustee to step in at this point.
At a hearing in September, the judge allowed the trustee to continue his work settling Roberson's claims, but declined to dismiss the involuntary bankruptcy petition.
A hearing has been set for 10 a.m. Nov. 16 in Room 120 of the Federal Building in Danville to further consider the case.
Roberson Transportation sold CX Roberson to Celadon Group and PFT Roberson to Annett Holdings in January.
OOIDA claims about 325 owner-operator drivers had federally regulated lease agreements with the Roberson firms that required them to put up $2,500 to guarantee their performance. They also had to contribute from 4 cents to 5.5 cents per mile to a maintenance reserve account.
The money was to be held in escrow, with all the unused escrow funds, plus interest, to be returned to the driver within 45 days of termination of the independent contractor agreement.
However, the association said it had received "numerous complaints" from drivers seeking assistance in recovering their escrow funds.
In a memorandum sent to the court, OOIDA said the two companies, former divisions of Roberson Transportation, owe drivers more than $1.6 million that was supposed to be held in escrow by the trucking companies. OOIDA said none of that money has been returned to the drivers.
Creditors who filed the involuntary bankruptcy petition in late summer want the bankruptcy judge to keep the case alive for the sake of truckers and other unsecured creditors, according to news reports.
"Without a bankruptcy case and an independent trustee, the unsecured creditors will receive nothing and will have no hope of receiving anything," the creditors claimed in response to the companies' motion to dismiss the case.
Attorneys for the companies said it was best to leave the matter in the hands of a private trustee hired by Roberson.
The attorneys said the private trustee had liquidated most of the assets and had contacted many former employees and potential creditors, adding it would be "extremely time-consuming, expensive and inefficient" for a federal bankruptcy trustee to step in at this point.
At a hearing in September, the judge allowed the trustee to continue his work settling Roberson's claims, but declined to dismiss the involuntary bankruptcy petition.
A hearing has been set for 10 a.m. Nov. 16 in Room 120 of the Federal Building in Danville to further consider the case.
Roberson Transportation sold CX Roberson to Celadon Group and PFT Roberson to Annett Holdings in January.
OOIDA claims about 325 owner-operator drivers had federally regulated lease agreements with the Roberson firms that required them to put up $2,500 to guarantee their performance. They also had to contribute from 4 cents to 5.5 cents per mile to a maintenance reserve account.
The money was to be held in escrow, with all the unused escrow funds, plus interest, to be returned to the driver within 45 days of termination of the independent contractor agreement.
However, the association said it had received "numerous complaints" from drivers seeking assistance in recovering their escrow funds.
media brand
0 Comments
See all comments