Pennsylvania trucking companies file for bankruptcy

Two Pennsylvania-based trucking companies, which contract with the U.S. Postal Service to haul mail, have filed for Chapter 11 bankruptcy.

McClellan Trucking Inc. filed its petition in the U.S. Bankruptcy Court for the Western District of Pennsylvania on Wednesday, five days after the company’s parent, Duran Transfer Inc., filed for bankruptcy Sept. 23. The queries indicate that the two companies are based at the same address in Waterford, Pennsylvania.

According to court documents, Duran Transfer and McClellan both filed a petition on Wednesday for joint administration of the Chapter 11-affiliated matters. Blaine Duran, chairman and owner of Duran Transfer and McClellan, signed both petitions.

The companies have been in business for over 30 years and employ 23 people. According to the Federal Motor Carrier Safety Administration’s SAFER database, the trucking companies both report having nine power units and 21 drivers. However, Duran Transfer and McClellan operate under two Department of Transport numbers.

In addition to transporting mail for the Postal Service, Duran Transfer transports general freight, household items, and building materials, among other goods. Its trucks were inspected 11 times and one was taken out of service over a two-year period, resulting in an out-of-service rate (OSS) of 9.1%, well below the national average rate of OSS of 21.6%.

McClellan carries mail exclusively. Its trucks were inspected five times and two were taken out of service in the same two-year period, resulting in an OSS rate of 40%. According to FMCSA data, McClellan’s joint authority was revoked on May 9 but was restored on May 16.

In court filings, Guy F. Fustine, attorney for both companies, said there were two secured creditors in the Chapter 11 bankruptcy. The Pennsylvania Department of Revenue filed judgment against McClellan for more than $4,000 in August 2021.

“The judgment is intended to be secured by a tax assessment lien on the debtor’s property, including cash collateral,” Fustine said in the filing.

At press time, Fustine had not responded to Freightwaves’ request for comment.

Citizens Bank of Pennsylvania filed a UCC-1 funding statement with the Pennsylvania Department of State in May 2013 for nearly $24,200.

The documents list the companies’ assets and liabilities between $100,000 and $500,000. Both petitions state that they have up to 49 creditors and maintain that the funds will be available for distribution to unsecured creditors once they have paid administrative fees.

Penske Truck Leasing is listed as an unsecured creditor on both petitions, owing nearly $16,300, while trucking companies owe Citizens Bank of Rhode Island nearly $59,000. McClellan owes the Internal Revenue Service more than $29,000, while Duran Transfer owes the IRS $34,000 for taxes, according to petitions.

Increase in bankruptcies among postal subcontractors of the postal service?

Two other trucking companies that haul mail for the Postal Service have filed for bankruptcy since May.

Family-owned Matheson Postal Services Inc. of Sacramento, Calif., filed its Chapter 11 petition in the U.S. Bankruptcy Court for the Eastern District of California on May 5. Matheson, which has 248 trucks and 383 drivers, is looking to reorganize.

The company’s terminal processing services division, Matheson Flight Extenders, also filed for bankruptcy the same day.

Family-owned Rooney Trucking Inc. of Polo, Missouri, which also contracted with the Postal Service to haul mail, ceased operations and filed for Chapter 7 bankruptcy in early May.

The 67-year-old trucking company had 37 drivers and 66 power units, according to the FMCSA SAFER website.

Attorney Ryan Blay told FreightWaves that “fuel and labor expenses were certainly issues that plagued Rooney Trucking Inc.”

“The biggest issue, however, was the US Postal Service’s decision to cut some routes and cancel some contracts,” Blay said. “The business could not operate profitably with a restricted revenue stream. It was the most important factor in the decision to declare bankruptcy for the company.

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