A Miami-based trucking company, Star Transportation PA Inc., and its five affiliated companies recently filed for Chapter 11 bankruptcy protection, marking a dramatic collapse in the trucking industry. The filings took place on November 1, 2024, in the U.S. Bankruptcy Court for the Southern District of Florida. A day later, its five affiliates—Finance Solutions LLC, MDL Business Group LLC, Star Transportation A Inc., Star Truck Service Inc., and US Express Line LLC—followed suit.
The reason for the collapse? Severe financial distress, exacerbated by rising operational costs such as skyrocketing fuel prices, insurance premiums, and maintenance expenses. The trucking sector has been facing mounting challenges, with 2024 proving particularly difficult.
Star Transportation and its affiliates list assets up to $1 million but liabilities ranging from $10 million to $50 million. The company’s reorganization plan is supported by a post-petition factoring agreement to keep operations running, despite the immense strain.
Key Figures:
- Total companies involved: 6
- Affected drivers: 400+
- Trucks out of service: 20% of 233 power units
- Liabilities: $10 million–$50 million
- Assets: Up to $1 million
Sources:
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