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Shuttered Illinois trucking company files for bankruptcy liquidation

Harry October 26, 2024

A shuttered Illinois-based trucking company that once transported general freight, beverages and paper products recently filed for bankruptcy liquidation.

Mighty Move Transport LLC, based in Dolton, Illinois, had 70 power units and 75 drivers at the time of its closure. Federal Motor Carrier Safety Administration SECURE website.

Mighty Move Transport, a five-year-old carrier that also carries liquids and gases, filed a petition with the U.S. Bankruptcy Court for the Northern District of Illinois on Thursday. The petition lists Charles W. Sanders as the CEO of the trucking company. No reason was given as to why the carrier, which also has a branch in Fort Wayne, Indiana, filed for Chapter 7.

Mighty Move Transport is represented by bankruptcy attorney Charles L. Magerski of CLM Law Group, PC in Lansing, Illinois.

FreightWaves has reached out to both Magerski and Sanders for comment.

In its Chapter 7 petition, Mighty Move Transport lists assets of up to $50,000 and liabilities of $500,000 to $1 million. The company, which has up to 49 creditors, states that there will be no funds left to distribute to unsecured creditors after administrative fees are paid.

According to Mighty Move Transport’s financial statements, its gross revenue from Jan. 1 through the date of its bankruptcy filing was around $2.3 million. The petition states that the company earned approximately $4.5 million in 2023 and approximately $4.7 million in 2022.

According to the FMCSA, Mighty Move Transport was authorized to operate in March 2019 and remains active with its Bodily Injury Property Damage Coverage (BIPD) insurance. There have been no driver or vehicle inspections at Mighty Move Transport over the past 24 months, and no deaths, injuries or withdrawals have been reported during the same period. FMCSA data.

Four months before the company closed and filed for bankruptcy, Mighty Move increased the number of power units from 50 to 70. MCS-150 format. It retained the 75 driver count it had previously listed in its previous files.

The company’s largest creditors with the largest non-priority unsecured claims include New York, New York-based RTR Recovery LLC, which owes approximately $194,000; Fundworks LLC, based in Salt Lake City, Utah, owes more than $113,000; and Apollo Funding Co. of East Rochester, New York, are owed more than $102,000.

Sanders applied on behalf of Mighty Move Transport and received an award. Paycheck Protection Program (PPP) loan from Self-Help Credit Union in the amount of approximately $408,000 in May 2020. Its application stated that Mighty Move Transport operates 110 trucking jobs and has monthly payroll expenses of approximately $408,000. More than $413,000 of the trucking company’s loan amount, including accrued interest, was forgiven.

A creditors’ meeting was scheduled for December 4.

Breach of contract cases

The bankruptcy petition states that two breach of contract lawsuits against the trucking company, one against Mighty Move Transport LLC, Mighty Move Transport and Sanders, were filed by Apollo Funding in September 2024 in Monroe County Superior Court in Rochester.

A second breach of contract lawsuit was filed against Sanders and the carrier in October by DMKA LLC, doing business as The Smarter Merchant, in Kings County Superior Court in Brooklyn, New York.

Sanders also filed for personal bankruptcy on Wednesday in the U.S. Bankruptcy Court for the Northern District of Illinois. In his petition asking for Chapter 13 to be granted, which will enable him to pay his debts within a certain period of time if approved by the bankruptcy court, he states that RTR Recovery and Apollo Funding have non-priority unsecured receivables. His petition also included two breach of contract lawsuits filed by merchant cash advance companies DMKA and Apollo Funding that personally named him and his trucking company.

A creditors’ meeting in Sander’s personal bankruptcy case is scheduled for November 20.

Click here to read more articles by Clarissa Hawes.