Two prominent Miami-based trucking companies, A1 Transport Network and AB Brothers USA, have initiated Chapter 11 bankruptcy proceedings. The petitions were filed on Saturday in the U.S. Bankruptcy Court for the Southern District of Florida.
A1 Transport Network, with Ivan Antigua Escobar listed as president, and AB Brothers USA, led by Johania Tomas Diaz as president and managed by Escobar as general manager, are facing financial challenges. According to data from the Federal Motor Carrier Safety Administration’s SAFER website, A1 Transport Network operates with 64 drivers and 25 power units, while AB Brothers USA employs 11 drivers and owns two power units.
Both companies have disclosed their financial status in their bankruptcy filings, reporting assets in the range of $500,000 to $1 million, and liabilities between $1 million and $10 million. Each firm has identified up to 49 creditors.
The filings indicate different approaches regarding creditor payouts. A1 Transport Network’s petition suggests that no funds will be available for unsecured creditors beyond administrative expenses. In contrast, AB Brothers USA anticipates funds being accessible for unsecured creditors.
Despite the filings, specific reasons for seeking bankruptcy protection were not detailed in the petitions. However, both companies have expressed intentions to reorganize their operations as part of the bankruptcy proceedings.
Representing both A1 Transport Network and AB Brothers USA in these proceedings is Jeffrey Schatzman, a bankruptcy attorney based in Miami. As of the latest update on Monday, Schatzman had not responded to requests for comment regarding the filings.
The bankruptcy filings mark a significant development for these trucking companies, which play vital roles in the regional transportation sector. Moving forward, the U.S. Bankruptcy Court will oversee the reorganization efforts, ensuring compliance with legal procedures and addressing creditor claims during this financial restructuring phase.
