Lila Cat Trekking LLC, a Roanoke, Alabama-based carrier, filed for Chapter 11 bankruptcy protection on Friday.
The company is seeking reorganization under Chapter 11 Subchapter V, a provision designed to facilitate reorganization for small businesses. The filing was filed in the U.S. Bankruptcy Court for the Middle District of Alabama, according to court records.
In its voluntary filing, Lila Cat Trucking estimated its assets and liabilities at between $1 million and $10 million. The company reported having one to 49 creditors.
Creditors indicated that after paying administrative expenses, there are no funds available for distribution to unsecured creditors.
The petition was signed by Matthew Brown, who is listed as a managing member, and filed by Montgomery-based attorney Paul D’Esko.
Brown told FreightViews that the carrier intends to continue operating during the restructuring process.
“We will continue to operate fully. We will come out of this stronger than ever,” Brown said. “We will strategically use the time to file with the recovering freight market. We will continue to offer our customers, as well as all of our valued employees, the top-notch service we are known for.”
Subchapter V allows eligible businesses to arrange loans while maintaining control of day-to-day operations.
According to the Federal Motor Carrier Safety Administration’s SAFER database, Lila Cat Trucking has an active USDOT number and is an authorized carrier.
The company operates 12 electric units and employs 15 drivers, providing interstate service for hire. Its cargo profile includes general cargo, metal sheets and coils, construction materials and large machinery.
The company reported 159,000 vehicle miles traveled in 2023, according to its latest MCS-150 filing.
FMCSA inspection data shows 59 inspections in the last 24 months, with an out-of-service vehicle rate of 44.8%, above the national average of 22.26% during the same period.
The carrier has not reported any incidents in the last 24 months.
On Monday, the bankruptcy court issued a notice of deficiency citing several required filings, including the payment of a $1,738 chapter filing fee, the submission of a schedule and statement of financial affairs, and a list of the 20 largest unsecured creditors.
The court said that failure to submit the necessary documents on time can lead to dismissal of the case.
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