Legal issues force Illinois trucking company to shut down and file Chapter 7
An Illinois trucking company, facing growing legal problems, shut down and filed for Chapter 7 bankruptcy on Monday.
Mardon Trucking Inc., headquartered in Countryside, has filed its petition with the U.S. Bankruptcy Court for the Northern District of Illinois.
The trucking company, which once had 18 drivers and the same number of powertrains, closed its doors almost a year ago after its authority was revoked by the Federal Motor Carrier Safety Administration (FMCSA).
Before the trucking company officially ceased operations in 2020, Mardon Trucking was reported to have exceeded the vehicle maintenance threshold under the FMCSA BASICs on Compliance, Safety and Responsibility (CSA) which it uses to identify carriers with safety concerns.
In its file, Mardon Trucking lists its assets up to $ 50,000 and its liabilities between $ 500,000 and $ 1 million.
The closed trucking company says it has up to 49 creditors. The company maintains that no funds will be available to unsecured creditors once it pays the administrative fee.
Among Mardon’s top 20 unsecured creditors are First Merchants Bank of Darien, Ill., Which owed $ 280,000; US Bank Equipment Finance of Portland, Oregon, owed $ 188,000; and Crestmark Vendor Finance of Troy, Michigan, owed $ 160,000. According to court documents, those creditors have filed a lawsuit against the closed carrier, including two breach of contract lawsuits and a collection case in Illinois and Michigan.
According to the financial data of the trucking company, its gross revenue was over $ 4.7 million in 2018, fell to $ 3 million in 2019, but only posted revenue of $ 400,000. dollars in 2020.
Donco Donev, listed as president of Mardon Trucking, did not respond to FreightWaves’ request for comment.
A creditors meeting is scheduled for July 6.
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