William B. Cassidy | Sep 19, 2011 10:54AM EDT
Trucking and logistics company Cargo Transportation Services emerged from bankruptcy last week after reorganizing and attracting a new equity partner.
Smith Transportation Services, another motor carrier, invested an undisclosed amount in CTS, which filed for Chapter 11 bankruptcy protection in January.
“With the help of Smith, we can now infuse new capital and experience into the CTS operation,” said David Bell, president and COO of the Sunrise, Fla.-based carrier.
CTS hauls both truckload and less-than-truckload freight and specializes in refrigerated produce, linking markets in Florida, California and New York. As of January, the company had 200 trucks.
The company provides consolidation, distribution, logistics and warehousing with offices in Los Angeles; Nashville, Tenn.; John F. Kennedy International Airport, New York; and Florida. CTS grew quickly in the mid-2000s, nearly doubling its revenue from 2006 to 2009, when it hit $73 million and ranked 2,504 on the Inc. 5000 list.
But the company filed for bankruptcy protection this year after its lender, Comerica Bank, cut off its credit, claiming CTS defaulted on $7.9 million in loans.
In January, Comerica seized approximately $1.7 million in the carrier’s bank accounts and began collecting its accounts receivables. At a Jan. 19 bankruptcy court hearing, Comerica agreed to unfreeze the trucking company’s assets and continue lending it money through its reorganization.
“We definitely beat the odds in the transportation industry by being able to come out of this successfully, most 3PLs don’t,” said Bell. “We’re glad it’s over.”
Contact William B. Cassidy at wcassidy@joc.com. Follow him on Twitter at @wbcassidy_joc
