A Texas shipping company filed for Chapter 7 bankruptcy just as a result of its liquidation of its assets following a financial collapse.
In an effort to sell goods, Sunset Logistics Inc., based in Irving, Texas, and five of its sponsors filed for Chapter 7 bankruptcy safety, according to Freight Waves. Sunset Logistics filed a bankruptcy petition on October 3rd in Dallas ‘ U.S. Bankruptcy Court for the Northern District of Texas, according to the store. The shipping company had ceased operating on September 29 due to rising costs, small freight charges, and the current status of the U. S. business.
According to Freight Waves, Glidewell Leasing Co. LP, Sunset Express Inc., Sun-Tech Leasing of Texas, Mobile Fleet Marking Inc., and Glidewell LLC. were the associated companies that even filed for Chapter 7 bankruptcy.
Sunset Logistics and its five associated organizations asserted in current bankruptcy court filings that they were unable to continue operating without debt. As part of its bankruptcy petition, Sunrise Logistics disclosed between$ 10 million and$ 50 million in liabilities and up to$ 1 million in assets.
According to Freight Waves, Porter Capital, which is based in Birmingham, Alabama, recently filed a complaint against Sunset Logistics and its members, claiming that the businesses defaulted on a remedy accounting arrangement and that the firms owe Porter Capital over$ 5 million, in addition to accruing fees and charges. The report noted that the Chapter 7 bankruptcy papers will temporarily put a stop to the civil litigation involving Porter Capital’s complaint.
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According to Freight Waves, Sunset Logistics ‘ bankruptcy filing did not contain a plan of its obligations and resources or the shipping company’s declaration of financial matters, which were due on Thursday. In response, the business filed a motion to obtain a deadline improvement until October 31. According to the movements, Sunset Logistics and its affiliates “must collect data from ebooks, documents, and files relating to the statements of dozens of creditors.”
” Given the scope of the]companies ‘ ] operations and the interrelated nature of these Chapter 7 cases, it will take some time to gather and process such information”, Sunset Logistics ‘ motion added.
The Street claims that Sunset Logistics recently ran operations with 90 power units and 90 truck owners. According to the outlet, Sunset Logistics supposedly had not returned$ 1, 000 in upkeep and payment account funds as of the middle of October by not paying its drivers their final wages.