Springfield, Missouri refrigerated carrier company, O&S filed for bankruptcy protection last week and asked the court’s permission to form a business relationship with trucking giant Prime, Inc., The Trucker reported.
On Wednesday, the carrier filed a petition with the U.S. Bankruptcy Court for the Western District of Missouri, seeking bankruptcy protection and listed its estimated liabilities between $10 and $50 million, with assets totaling less than $500,000.
The following day, O&S filed an emergency motion of approval of the Prime affiliation.”
According to The Trucker, “the broker/carrier agreement with New Prime Inc.’s Prime Logistics calls for O&S to receive 80 percent of the freight revenue from the relationship ” critical liquidity that would not be possible otherwise, according to court documents.
“O&S also stands to benefit from Prime’s advantageous buying power for fuel and equipment, as well as from additional business through Prime’s customer base, according to the filing. Prime would assume administrative, accounting and marketing functions, resulting in reduced overhead expense for O&S.”