Two Miami-based trucking companies, A1 Transport Network and AB Brothers USA, have sought Chapter 11 bankruptcy protection.
Both companies submitted their petitions on Saturday to the U.S. Bankruptcy Court for the Southern District of Florida. A1 Transport Network, headed by Ivan Antigua Escobar as president, also has Escobar serving as the general manager of AB Brothers USA, where Johania Tomas Diaz is the president.
As reported on the Federal Motor Carrier Safety Administration’s SAFER website, A1 Transport Network operates with 64 drivers and 25 power units, whereas AB Brothers USA has 11 drivers and two power units. Both companies have declared their assets to be between $500,000 and $1 million, with liabilities ranging from $1 million to $10 million, and each claims to have up to 49 creditors.
A1 Transport’s filing indicates that, after covering administrative expenses, there will be no funds available for unsecured creditors, while AB Brothers states that funds will indeed be available for these creditors. The reasons behind the bankruptcy filings were not disclosed, but both companies are looking to reorganize.
Bankruptcy attorney Jeffrey Schatzman from Miami represents both firms. As of publication, Schatzman had not yet provided a response to inquiries from FreightWaves.
A1 Transport Network
The top three creditors claiming non-priority unsecured debts against A1 Transport Network include Penske Truck Leasing of Reading, Pennsylvania, with over $449,000 owed for lease payments on 24 Freightliner trucks; ATX MCA Fund LLC of New York, owed $409,000 for a contractual breach judgment; and the Florida Department of Financial Services Division of Workers’ Compensation, owed nearly $156,000 for workers’ compensation. A1 Transport Network disputes the claims from ATX MCA Fund and Penske.
The company reported gross revenues exceeding $3.7 million from January 1 until the bankruptcy filing date, with total revenues of approximately $8.8 million for 2023 and around $215,000 for 2022. FMCSA granted A1 Transport Network common carrier authority in February 2017, which was temporarily revoked in June 2022 before being reinstated shortly thereafter. Their insurance is set to be canceled this Saturday.
AB Brothers USA
AB Brothers USA, as per its website, focuses on shared and full truckload services and expedited freight hauling. The three primary creditors listed in its petition include Ryder Truck Rental of Alpharetta, Georgia, owed nearly $279,000; Electronic Funds Source LLC of Ogden, Utah, owed about $183,000; and Freight Factoring Specialists LLC of Hollywood, Florida, owed nearly $137,000. The company disputes claims from Ryder and Freight Factoring Specialists.
Secured creditors include CEFI of Coral Gables, Florida, owed $182,000 for three dry van trailers, and Crossroads Equipment Lease and Finance of Rancho Cucamonga, California, owed around $234,000 for five dry van trailers. AB Brothers USA lists A1 Transport Network as a co-debtor for some debts.
As of its bankruptcy filing date, AB Brothers USA reported over $3.9 million in gross revenues since January 1, with total earnings of about $6.7 million in 2023 and roughly $13.5 million in 2022. The company was granted common carrier authority in July 2016, and its insurance is also set to be canceled on Saturday. In a 24-month inspection period, AB Brothers USA’s trucks were inspected 10 times with a 30% out-of-service rate, exceeding the national average, while their drivers had a 6.7% out-of-service rate, aligning with the national average.
Meetings with creditors for both companies have not yet been scheduled.
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