New York residents who follow the business world may be aware that Fikes Truck Line announced early last year that it would be ceasing operations in May 2015. The Arkansas-based logistics company had been in operation for 74 years when news of its demise surfaced, and recent reports indicate that the onetime CEO and president of the defunct venture has filed a Chapter 7 bankruptcy petition.
A Chapter 7 bankruptcy involves the discharge of most unsecured debts and the liquidation of non-exempt assets, and the CEO's filing, which was made in February 2016 in an Arkansas federal court, disclosed assets and liabilities of between $500,000 and $1 million. The documents also disclosed that the former trucking company executive may have as many as 90 creditors.
A storied history is no guarantee of future success, and the former CEO appears to be one of the many investors who made poor financial decisions prior to the 2008 financial crisis. He says that he found it difficult to generate the revenue necessary to update the equipment used by Fikes and its way of doing business, and he also believes that investments designed to help the company meet stricter federal regulations placed the operation under great financial strain. The CEO said that the company's goal was to transition from owner-operated flatbed trucks to a fleet of vehicles employing the latest electronic monitoring and satellite tracking technology.
Choosing which form of bankruptcy to file can be a very difficult decision to make. Attorneys with experience in this area could explain the eligibility and other requirements of each chapter as well as their relative advantages and disadvantages.