California trucking company closes and files for bankruptcy

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Navarro Trucking Group, a California-based trucking company that removed intermodal containers from the ports of Los Angeles and Long Beach, folded and filed for Chapter 7 bankruptcy.

Navarro, based in Bellflower, Calif., had 15 power units and the same number of pilots, according to the Federal Motor Carrier Safety Administration SECURITY website.

FMCSA data shows the intermodal company’s authority was voluntarily revoked in late September. His insurance is expected to be canceled on Tuesday. The FMCSA granted the license to operate the trucking company in September 2019.

Navarro Trucking Group filed its petition in the U.S. Bankruptcy Court for the Central District of California on October 13.

In the filing, Navarro, which also carried chilled food and fresh produce, lists assets of $500,000 to $1 million and liabilities of up to $10 million. The company, which has up to 49 creditors, argues that no funds will be available for distribution to unsecured creditors after administrative fees are paid.

It is unclear why the company was forced to close. However, drayage carriers continue to be plagued by ongoing supply chain hurdles and uncertainty caused by AB5, California’s controversial independent contractor law.

Drayage trucks headed to Southern California’s busiest ports. Photo credit: Jim Allen/FreightWaves

Efrain Hernandez Navarro, president of Navarro Trucking Group, and his attorney, Julie Villalobos, did not respond to FreightWaves’ phone or email requests for comment.

Navarro Trucking Group owes several finance companies, listed as secured creditors, more than $1.6 million for the company’s equipment, which includes several tractors and trailers, according to the bankruptcy filing.

The largest unsecured creditor is the US Small Business Administration, which owes $499,000 for a loan the trucking company received under the COVID-19 Economic Injury Disaster Loan (EIDL) program. Although funds received through the Paycheck Protection Program are forgivable, the United States Small Business Administration deferred the repayment of disaster relief funds for up to two years from the date the loan was made.

Other unsecured creditors include TVT Capital in Roslyn, New York, which owed $242,000 for a business loan, and American Express, which owed more than $142,000.

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