Creditors alleging they are owed thousands have filed a petition to force Eleets Transportation, headquartered in Jacksonville, FL, into involuntary bankruptcy.
Eleets operated a brokerage and a trucking company until it abruptly shut its doors in November 2012, leaving many former employees, shippers and carriers stunned.
Elise M. Rosamonda of Weiss, Spencer and Levin in Lighthouse Point, FL, told Land Line recently that her firm filed the petition on behalf of some of its clients on Dec. 28, 2012, in the U.S. Bankruptcy Court for the Middle District of Florida in Tampa.
“We rarely go this route – placing a company into an involuntary bankruptcy situation – but this is just a unique situation,” Rosamonda said. “We know of so many carriers that were absolutely devastated by them just abruptly shutting their doors.”
She said the move was necessary after Wells Fargo, headquartered in Charlotte, NC, filed an emergency motion for the appointment of a receiver in the U.S. District Court for the Southern District of Florida in Palm Beach.
The filing claims the bank is owed more than $5.7 million, stemming from revolving credit loans it made to Eleets, starting back in November 2011. Wells Fargo is pushing for receivership to protect and recover the company’s remaining assets, including accounts receivables.
Rosamonda said Wells Fargo and some of the carriers are demanding payment for the loads. However, some of the shippers are concerned about who to pay for fear of being placed in a “double-payment situation.”
“We hope to argue on behalf of the actual delivering motor carriers that the freight charges pledged to Wells Fargo were grossly encumbered by the carriers’ freight charges, and Wells Fargo failed to do its due diligence to ensure the accounts receivable are wholly owned by Eleets,” she said.
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