BY Fraser Tennant
In one of the sector’s biggest bankruptcies of 2024, trucking company Kal Freight has filed for Chapter 11 bankruptcy protection in order to wind down failing affiliates and restructure its primary business.
Bankruptcy court documents show that the company owes approximately $325m to creditors, including Daimler, TBK Bank and Bank of America.
High demand during the pandemic saw Kal Freight invest heavily in trucks and trailers, but once the crisis subsided, the company was overleveraged and unable to meet its financial obligations.
Kal Freight is one of a number of major trucking companies to have filed for bankruptcy protection in 2024. These include Miami-based Star Transportation, Illinois shipping company Mighty Move Transportation and Texas-based logistics company Sunset Logistics.
Kal Freight intends to fund the Chapter 11 process with debtor-in-possession financing, which will provide it with the necessary liquidity to maintain normal operations while it undertakes certain key operational restructuring initiatives to emerge as a stronger enterprise positioned for long-term success.
Kal Freight has appointed Bradley D. Sharp, president and chief executive of Development Specialists, Inc., to serve as chief restructuring officer during the Chapter 11 process.
Kal Freight plans to “reorganise around their core trucking business and to wind down their non-core parts and tires businesses and liquidate certain real estate assets”, said Mr Sharp in the court filing. “The company intends to continue paying its employees in full in the ordinary course, as well as paying its vendors and suppliers in full under normal terms for goods and services provided on or after the date of filing.”
Established in 2014 and headquartered in Fontana, California, Kal Freight offers a complete range of integrated transportation and logistics services to diverse industries across the US. Its 800 drivers, 800 trucks and 2200 trailers operate across seven terminals in Fontana, Texas, New Jersey, Indiana, Tennessee, Georgia, Arizona and Arkansas.
Mr Sharp concluded: “Throughout the Chapter 11 process, Kal Freight aims to continue to serve its customers and trade partners and ensure the safety of its employees and fleet operations.”
News: California trucking company Kal Freight files for Chapter 11 restructuring