UST Logistics, Mencor, Prostar, and Gulf Northern Transport filed bankruptcy petitions yesterday in the United States Bankruptcy Court, Middle District of Florida, Jacksonville Division. They have filed Chapter 11 and will liquidate their assets.
"It's important to note that the publicly traded holding company, U.S. Trucking Inc., is moving forward and is not involved in these bankruptcy proceedings," said Dan Pixler, chairman and CEO of U.S. Trucking. "While the loss of revenues from these companies will dramatically impact our consolidated revenues and earnings as a whole, we anticipate bringing on substantial profitable revenues soon."
"Placing our operating subsidiaries into bankruptcy was not an easy decision. Along with the rest of our industry, we have obviously encountered a difficult operating year."
Pixler said the company was especially hurt by a lack of adequate information systems. After making several large acquisitions, the company found itself unable to manage the new businesses well because of an inability to get current operating and financial information from the new acquisitions.
U.S. Trucking plans to rebuild with an "agency concept," which will require no long-term debt or equipment purchases, and is currently negotiating with several small carriers to establish agent programs.