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Overdrive Staff | March 01, 2011

THE CALIFORNIA Air Resources Board is hosting events to help explain truck regulations, provide financial information and demonstrate truck inspections. Exhaust retrofit and SmartWay-approved equipment suppliers will attend, and financial grant application assistance will be available. Meetings are scheduled for 9 a.m.-5 p.m. March 5 in Riverside, March 19 in San Mateo and March 26 in Fresno. For information, call (866) 634-3735.


CTS files Chapter 11

A bankruptcy judge held a final hearing Feb. 9 on an emergency order issued to Cargo Transportation Services after the Florida-based trucking company filed for Chapter 11 protection.

On Jan. 21, Judge Michael Williamson of the U.S. Bankruptcy Court, Middle District of Florida, signed interim orders that included CTS’s motion use of cash collateral and granting post-petition financing, according to court records.

The truckload and less-than-truckload carrier’s services include distribution, warehousing and logistics. CTS, along with its non-debtor affiliates, CTS Tennessee and Cargo West, have 140 employees and annual gross revenue of $100 million.

In May, CTS and its affiliates executed a master revolving note for $10.15 million with Comerica Bank, a Texas-based financial services company. The company had amended and restated a $10 million promissory note from September 2009.

CTS charges that Comerica, because of “technical, nonmonetary defaults that are disputed by CTS,” seized its bank accounts and began collecting CTS’s accounts receivables, which totaled $1.7 million. When CTS petitioned the court Jan. 12 for Chapter 11, which allows reorganization of debts and a court-approved payment plan, $6.4 million remained on that debt.

The company plans to borrow $2 million from Comerica to pay for operating expenses and administrative costs. The bankruptcy will have no impact on daily operations, CTS said.

— Jill Dunn



SHORT HAULS

BILL G. POULOS, a driver for FedEx Freight of Portland, Ore., has been named a Truckload Carriers Association Highway Angel. Poulos found a 2-year-old toddler strapped to her seat inside a wrecked car on I-84 in Oregon. He reached through a broken window, cut the seat belt off the child and pulled her to safety.

THE U.S. DEPARTMENT of Homeland Security is replacing its five-color terrorist threat alert system with a two-level system expected to be implemented by May. Under the new National Terrorism Advisory System, the department and other federal entities will issue alerts, classified as imminent or elevated. It will identify the potential threat and recommend action for the public.



Speakers support hours status quo

Trucking industry executives and drivers speaking at a meeting to discuss proposed hours of service changes Feb. 17 urged the Federal Motor Carrier Safety Administration to retain the current regulations. The Washington, D.C. area listening session was organized by FMCSA.

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