Navarro Trucking Group, a trucking firm established in California that transported intermodal containers from Los Angeles and Long Beach ports, has filed for Chapter 7 bankruptcy.
Based in Bellflower, California, According to the Federal Motor Carrier Safety Administration’s SAFER website, Navarro had 15 power units and the same number of drivers.
According to FMCSA records, the intermodal company’s authority was voluntarily canceled in late September. Its insurance is set to expire on Tuesday. In September 2019, the FMCSA awarded the trucking company operational authority.
On October 13, Navarro Trucking Group filed its petition in the United States Bankruptcy Court for the Central District of California.
Navarro also hauled refrigerated food and fresh vegetables and lists assets of $500,000 to $1 million and liabilities of up to $10 million in the statement. After administrative expenses are paid, the company contends that no funds will be available for distribution to unsecured creditors.
It’s unknown why the company had to close its doors. However, drayage carriers continue to face supply chain challenges and uncertainty due to AB5, California’s contentious independent contractor statute.
The president of Navarro Trucking Group, Efrain Hernandez Navarro, and his attorney, Julie Villalobos, did not respond to FreightWaves’ phone or email requests for comment.
According to the bankruptcy filing, Navarro Trucking Group owes more than $1.6 million to financial companies identified as secured creditors for the company’s equipment, including many tractors and trailers.
The U.S. Small Business Administration, the trucking company’s top unsecured creditor, owed $499,000 for a loan obtained through the COVID-19 Economic Injury Disaster Loan (EIDL) program. While funds obtained through the Paycheck Protection Program are forgiven, the US Small Business Administration has delayed repayment of disaster relief money until two years from the loan’s origination date.
TVT Capital in Roslyn, New York, owes $242,000 for a business loan, while American Express owes more than $142,000.
