Ohio Transportation Company, 3 Trucking Subsidiaries File Chapter 11 Bankruptcy
An Ohio-based transportation company and three of its affiliated trucking companies have filed for Chapter 11 bankruptcy, despite securing loans through the Paycheque Protection Program (PPP) of the United States Small Business Administration to stay afloat during the COVID-19 pandemic.
5AAB Holding LLC of Columbus, Ohio, along with its subsidiaries, 5AAB Transport, Heavy Diesel Service, and SJS Transport, filed their lawsuit in U.S. Southern District Bankruptcy Court on Monday.
In its file, 5AAB Holding lists its assets between $ 100,000 and $ 500,000 and its liabilities between $ 1 million and $ 10 million. He claims to have up to 49 creditors.
5AAB Holding maintains that no funds will be available to unsecured creditors once it has paid the administrative costs. However, the company’s three affiliates say the funds will be available to unsecured creditors once it reorganizes, according to court documents.
5Main unsecured creditors of AAB Holding
The transportation company’s major unsecured creditors include its factoring company, CarrierNet Group Financial of Sioux Falls, South Dakota, which owed nearly $ 208,000; First Financial Bank of Cincinnati, owed $ 179,000; and De Lage Landen of Wayne, Pa., owed nearly $ 25,000 in auto loans.
Court records indicate that two of 5AAB Holding’s subsidiaries, 5AAB Transport and Heavy Diesel Service, received a total of $ 59,000 in PPP funds. The petitions list the SBA lender as CFBank of Columbus.
5AAB Transport, which carries general cargo and mail for the U.S. Postal Service, has 15 powertrains and 14 drivers, according to the Federal Motor Carrier Safety Administration’s SAFER website. SJS Transport has two powertrains and a driver, according to the FMCSA website.
The bankruptcy petition lists Navdeep Sidhu and Hardeep Singh as shareholders of 5AAB Holding and the three entities. Sidhu and Singh did not respond to FreightWaves’ request for comment.
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