Cargo Transportation Services, a $100-million trucking company with operations in the Tampa Bay area, filed for bankruptcy in a hurry this week after its bank cut off its funds.
Company officials are concerned they will lose huge amounts of fruits and vegetables in their trucks, among other things. Many of the company's 200 trucks are loaded with produce, and its drivers don't have money for fuel, according to a bankruptcy filing.
Cargo Transportation Services, or CTS, has asked a judge to let it access its cash in the short term until its bankruptcy case is worked out, according to documents filed in U.S. Bankruptcy Court in Tampa.
CTS is a South Florida trucking company that has a regional headquarters in Tampa and a facility in Clearwater. About a third of its business is hauling produce, according to a 2007 article about the company in The Produce News.
Company executives and its bankruptcy lawyer weren't available Thursday. But a bankruptcy filing shows it rushed to file Chapter 11 bankruptcy Wednesday after Comerica Bank started seizing money in its bank accounts. The bank also seized CTS' accounts receivable, or the money the trucking firm gets from its customers.
The bank alleged that the trucking firm defaulted on $7.9 million in outstanding loans, although the defaults are "nonmonetary," the bankruptcy filing says. An attorney for Comerica could not be reached for comment Thursday.
CTS appears to be a significant player in Florida trucking. It claims $100 million in annual revenues and 140 employees, according to bankruptcy records.
Email
Facebook
Google
Twitter
Favorites
More
Advertisement
Advertisement