Legal woes force owner of shuttered carriers to file Chapter 7
On Wednesday, the owner of two former California trucking companies filed for Chapter 7 bankruptcy.
The action comes after three breach of contract judgments totaling more than $ 317,000 have been handed down against Royal Flush 89 Transport and its owner, Getsemani Cuevas of Riverside, California.
In its filing with the United States Bankruptcy Court for the Central District of California, Royal Flush lists assets of up to $ 50,000 and liabilities of between $ 500,000 and $ 1 million. The closed carrier claims to have up to 49 creditors. The company maintains that no funds will be available to unsecured creditors once it pays the administrative fee.
Among the company’s list of unsecured creditors, which are the last to be paid, are Pearl Beta Funding, which owed nearly $ 172,000, Mantis Funding, which owed $ 113,500, and Comdata Inc., which owed nearly $ 172,000. nearly $ 32,200. Cuevas was ordered to pay the companies in California’s breach of contract lawsuits, including two in Riverside County Superior Court and one in San Bernadino County Superior Court.
According to the petition, Sierra Mountain Express Inc. trucking companies in Orlando, Fla. Owe nearly $ 4,900 and H&S Car Carriers of Nahunta, Ga., Owe $ 2,600.
Cuevas, who also owned Cuevas Transport, filed for Chapter 7 personal bankruptcy, listing assets of up to $ 50,000 and liabilities of between $ 1 million and $ 10 million. In the file, he indicates that the IRS owes $ 19,500 in back taxes and the US Treasury as owed over $ 26,000. Both are listed as having senior unsecured claims against Cuevas.
He also cites court judgments against Royal Flush and other company debts in his personal file. The personal bankruptcy filing includes Cuevas Transport.
Cuevas did not respond to FreightWaves’ request for comment regarding the bankruptcy filings.
His lawyer, Michael Smith of Shioda Langley and Chang from Riverside, told FreightWaves he couldn’t comment on the matter.
Royal Flush had 12 powertrains and 11 pilots, according to the Federal Motor Carrier Safety Administration’s SAFER website. The carrier’s authority was revoked in December 2018 after its insurance was terminated.
Its intra-state carrier, Cuevas Transport, had four powertrains and eight drivers before shutting down.
A creditors meeting is scheduled for March 30.
Click for more FreightWaves articles by Clarissa Hawes.
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