A Michigan trucking company that hauls crude oil filed for Chapter 11 bankruptcy protection late last week, citing dropping freight revenue, which is down 54% in the first two months of 2021 compared with the same time frame a year ago.
Great Lakes Petroleum Transportation, headquartered in Alma, Michigan, filed its petition in the U.S. Bankruptcy Court for the Eastern District of Michigan last Thursday.
In its filing, Great Lakes lists its assets as between $50,000 and $1 million and its liabilities as between $1 million and $10 million. It states it has up to 99 creditors.
Among the crude oil carrier’s top 20 unsecured creditors — which are last in line for payment in Chapter 11 cases — include Mack Financial Services of Philadelphia, which is owed nearly $3.8 million; Comdata of Charlotte, North Carolina, owed more than $227,000; and Tank Truck Service and Sales of Warren, Michigan, owed $18,000.
The company estimates that funds will be available for distribution to unsecured creditors.
The carrier has 59 power units and 49 drivers, according to the Federal Motor Carrier Safety Administration SAFER website.
According to the crude hauler’s bankruptcy petition, one of the company’s largest unsecured creditors is Union Bank in Lake Odessa, Michigan, which is owed $1.1 million after the trucking company received a loan to stay afloat during the COVID-19 pandemic through the U.S. Small Business Administration’s Paycheck Protection Program (PPP).
Forgivable loans through the PPP started out with $350 billion in the CARES Act, signed into law by former President Donald Trump last March and replenished in April with an additional $320 billion. The SBA released the third round of about $284 billion in coronavirus funds in January.
Vincent J. Held Sr., president of Great Lakes Petroleum Transportation, did not return FreightWaves’ call seeking comment.
The trucking company’s two affiliates, Great Lakes Petroleum Corp. and Great Lakes Holdings LLC, also filed Chapter 11.
A creditors’ meeting is set for April 8.
Read more articles by FreightWaves Senior Editor Clarissa Hawes.
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