Trucking, logistics firms owed thousands after freight forwarder files Chapter 7
More than 150 trucking, logistics and towing companies collectively owe hundreds of thousands of dollars after a New Jersey freight forwarder specializing in shipping cars, boats and motorcycles around the world abruptly ceases operations and filed Chapter 7.
Advectus Transportation Services of Linden, New Jersey, filed its petition in U.S. Bankruptcy Court for the District of New Jersey on June 30.
In his file, Advectus lists its assets up to $ 50,000 and its liabilities between $ 500,000 and $ 1 million. The company claims to have 158 creditors and maintains that no funds will be available to unsecured creditors once it has paid the administrative costs.
Advectus owes Bank of America of Fort Worth, Texas more than $ 322,000, including $ 83,535 in funds it received from the lender under the US Small Business Administration’s Paycheck Protection Program in May. 2020. He also owes Chase Credit of Wilmington, Delaware, $ 47,000 and TD. Bank in Lewiston, Maine, over $ 27,685.
Adlectus’ remaining 150 unsecured creditors – who are the last to be paid in Chapter 7 cases – consist primarily of small trucking, logistics, and towing and tow truck companies that owe nearly of $ 279,000.
The bankruptcy petition lists the three general partners of Adlectus: Michael D. Liquori, president; Scott LaForge, Executive Vice President; and Richard A. Harty. Harty also owns Transportation Services International, headquartered in Linden in the suite adjacent to Advocus headquarters. His business is listed as an unsecured creditor, and owes nearly $ 35,000.
The petition says that Advoctus also owes global shipping company Wallenius Wilhelmsen Logistics, which operates a shipping terminal in the Port of Galveston, Texas, nearly $ 20,200, and owes Sanity Trucking of Mesquite, Texas, over $ 4,500.
According to Adlectus’ financial data, his gross income was around $ 2 million in 2020, but he did not include his income from previous years in his petition.
FreightWaves reached out to Advectus for comment, but neither the phone number nor the company’s website was working.
This is not the first foray of Advocus executives into international shipping, as LaForge was previously DAS Global Services, an international automotive transport company, and Liquori was its COO. DAS was headquartered at the same location as Advectus.
According to court documents, the Federal Motor Carrier Safety Administration revoked DAS Global’s operating authority in January 2013. The company then filed for Chapter 11 bankruptcy protection in December 2016.
See related articles:
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California freight forwarder folds up and files for Chapter 7 bankruptcy
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