Miami trucking company, 5 affiliates file for bankruptcy

The company’s trucks were inspected 507 times and 103 were taken out of service in a 24-month period, resulting in a 20% exit rate. That’s slightly lower than the national industry average of about 22.3 percent, according to the FMCSA.

The trucking company’s drivers were inspected 1,018 times in the same 24-month period, with 13 drivers removed from service, resulting in an exit rate of 1.3%. That’s significantly lower than the national average of about 6.7 percent, according to the FMCSA.

In the past two years, the company’s trucks have been involved in three fatalities, five injury crashes and 24 tows.

His 23-page petition lists assets of up to $1 million and liabilities between $10 million and $50 million. The petition lists the number of creditors up to 99 and states that the funds will be available to be distributed to unsecured creditors.

The bankruptcy petitions seeking the reorganization list Victor Khramov as the chairman and 100% shareholder of all six entities.

Star Transportation and its entities are represented by bankruptcy attorney Joseph A. Pack of Pack Law in Miami. FreightWaves has reached out to Pack for comment.

On Sunday, U.S. Bankruptcy Judge Corali Lopez-Castro approved Star Transportation and its affiliates’ emergency motion for joint administration of the Chapter 11 cases and to file a consolidated case management summary on a interim.

The court also approved the trucking companies’ motion to enter into a post-petition factoring agreement with Overland Park, Kansas-based RTS Financial Services on an interim basis. Court documents stated that Star Transportation did not have “sufficient unencumbered cash or other assets to continue operating during the Chapter 11 cases or to effect a reorganization without the interim approval of the proposed DIP facility.”

In a court filing, Khramov said the trucking industry has been in a state of distress for several years, but that “the situation in 2024 has reached unprecedented levels, with a cascade of negative trends creating a perfect storm of financial difficulties and widespread collapse. “

Khramov also blamed rising fuel costs, increased insurance claims and the costs of maintaining and repairing trucks and trailers, which have skyrocketed, with some repair costs nearly triple what they were a few years ago, according to the documents judicial.

Hramov said it maintains a fleet of 219 trucks and 235 trailers, which includes leased and owned equipment.

The move to file for Chapter 11 came after Star Transportation and its entities learned that one of its creditors had issued an order to repossess 47 of its financed trucks, according to court documents.

Star Transportation has until Nov. 12 to file its top 20 unsecured creditors as well as its corporate ownership statement. Companies’ schedules of assets and liabilities together with their statement of financial affairs (SOFA) are due on 15 November.

The decision to file for bankruptcy protection comes nearly a week after two former Star Transportation workers filed a lawsuit in federal court alleging the trucking company and its entities misclassified the workers as independent contractors instead of employees, in violation of the Fair Labor Standards Act.

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