California trucking company to file for Chapter 11 bankruptcy protection

A California trucking company announced plans to file for Chapter 11 bankruptcy protection.

On December 5, 2024, Kal Freight Inc. announced that it and affiliated companies filed voluntary petitions for relief in the United States Bankruptcy Court for the Southern District of Texas.

Kal Freight pointed to “continuing liquidity constraints facing the Company have resulted in the Company being unable to pay its debts as they come due and successfully operate its business.”

The company says that it intends to maintain normal day-to-day operations funded through debtor-in-possession financing during the restructuring process.

“The Company intends to continue paying its employees in full in the ordinary course, as well as paying its vendors and suppliers in full under normal terms for goods and services provided on or after the filing date … Throughout this process, Kal Freight aims to continue to serve its customers and trade partners and ensure the safety of its employees and fleet operations. The Company will file customary first day motions that, once approved by the Bankruptcy Court, will allow the Company to smoothly transition its business into chapter 11,” Kal Freight said in a news release.

Kal Freight was established in California in 2014 and has locations in Fontana, Lathrop, Bakersfield, and San Marcos as well as in Texas, New Jersey, Indiana, Georgia, and Arkansas. The company provides a variety of services including FTL, Dry Van, Dedicated, and Expedited.

According to the Federal Motor Carrier Safety Administration’s SAFER website, the company operates 580 power units and employs 600 drivers.