Trucking Firm Collapses into Bankruptcy Just Weeks After Lawsuit Exposes Unpaid Debts
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EXPLORE FURTHER: Famous U.S. Truck Model Discontinued After 65 Years of Service
A prominent Texas-based trucking firm has declared bankruptcy following legal action from its creditors who accused it of failing to settle millions in outstanding debts.
The Balkan Express and its affiliated company Balkan Logistics have initiatedChapter 11 bankruptcy proceedings in the Northern District of Texas.
The dry van trucking firm based in Fort Worth employs 166 drivers and owns approximately 170 trucks that transport cargo across 48 states, as confirmed by the company on Tuesday.
The company, established in 2007, aims to restructure its debt, which exceeds $22 million, as it continues to function.
This follows a legal action where M&T Capital, one of Balkan Express’ creditors, filed suit against the company for failing to repay $4.2 million in loans, interest, and attorney fees associated with the case.
The cause of our bankruptcy is due to our loans and cash flow problems; however, there’s no threat to our drivers’ employment,’ stated Daniel Ivandic, the general manager and controller at Balkan. He further mentioned, ‘We anticipate emerging from bankruptcy within approximately three to six months.’
It occurs a year later.
500 Texas truck drivers were let go all at once
following the sudden closure of a trucking and logistics firm.
Multiple individuals who claim to be ex-drivers for Balkan have alleged that the firm has been holding back wages, benefits, and engaging in poor management practices.
“I departed from the company a few years back. I had been with them for a decade, so I anticipated that something like this would occur sooner or later,” Cindy Tone, reportedly a previous staff member, commented online.
Tone asserted that the company eliminated vacation days for drivers during its financial struggles.
A different individual who claimed to be an ex-employee also stated that current drivers at Balkan Express assert they haven’t received timely payments ever since the firm entered Chapter 11 bankruptcy in April.
‘The drivers have had enough and are ready to bring their concerns directly to the main investigative federal agency in this country!’ claimed the user named Constintino online.
The Balkan Express refuted the allegations made by the purported ex-employees.
‘Ivandic mentioned that we never had vacation days to take because drivers get paid per mile.’
” Ninety-five percent of the drivers we had when we declared bankruptcy are still here with us; they remain loyal,” he mentioned additionally.
Balkan Express and Balkan Logistics declared their assets to be within the range of $10 million to $50 million in their bankruptcy submission.
The petition stated that the firms have as many as 49 creditors, and indicated that money would become accessible for those without secured claims after payment of administrative costs has been settled.
In recent years, trucking businesses have faced difficulties due to decreased demand for transportation services and reduced freight prices, which, when coupled with escalating expenses related to labor, fuel, and insurance, have put pressure on their profitability.
Balkan becomes part of a succession of trucking firms that have declared bankruptcy or ceased operations altogether this year.
An Illinois-based transportation firm named LTI Trucking shut down in April, resulting in 250 drivers losing their jobs, according to The Street.
Meanwhile, the Florida-based trucking firm Davis Express Inc. completed its last shipments on April 23.
The proprietor of the firm shared via a Facebook update that they were planning to retire and had lost interest in waiting for the market conditions to improve or attempting to find a purchaser.
Davis Express employees will keep receiving their salary and benefits up until June 15, according to the company.
In 2024, the transportation and logistics firm
US Logistics Solutions unexpectedly closed down
– impacting over 1,200 employees – merely three years following its acquisition by private equity.
Approximately 500 were truck drivers, with the remainder consisting of a mix of warehouse, dock, and office employees working for the company based in Texas.