B.T. Trucking Inc., also known as Blue Thunder Trucking, and its three affiliated companies—B.T. Transportation Group Inc., JPL Transport Inc., and Rysoti Inc.—have filed for Chapter 7 bankruptcy liquidation. The filing was made on July 19 in the U.S. Bankruptcy Court for the Northern District of Illinois. Founded in 1988 by Michael J. Irwin, Blue Thunder Trucking had grown to 75 drivers and the same number of power units before ceasing operations.
Company Background and Closure
Blue Thunder Trucking started with 35 owner-operators and 50 trailers, eventually expanding to operate 130 tractors and 220 trailers. However, no specific reasons were given for the bankruptcy filing. The petitions list the company’s assets between $100,000 and $500,000, with liabilities ranging from $1 million to $10 million. The company has up to 199 creditors, although the claim amounts were not detailed.
Operational Challenges
Prior to its closure, Blue Thunder Trucking faced significant operational challenges. FMCSA data revealed that the company’s trucks were inspected 65 times, with 28 trucks placed out of service, resulting in a 43% out-of-service rate—nearly double the national average. The company’s drivers had an 8% out-of-service rate from 138 inspections, slightly higher than the national average. Additionally, Blue Thunder trucks were involved in six injury crashes and five tow-aways over the past two years.
Affiliated Companies and Financial Struggles
B.T. Transportation Group: Originally B.T. Truck Brokerage, this company listed assets and liabilities between $100,000 and $500,000, with up to 199 creditors. Its surety bond was canceled shortly after the bankruptcy filing.
JPL Transport Inc.: This company listed assets up to $50,000 and liabilities between $50,000 and $100,000. The petition includes 17 former employees, including the Irwin family, as creditors. JPL received $1.5 million in PPP loans, with $1.1 million forgiven, to save 137 jobs during the COVID-19 pandemic.
Rysoti Inc.: Rysoti listed assets between $100,000 and $500,000 and liabilities between $1 million and $10 million, with up to 49 creditors.
Next Steps
U.S. Bankruptcy Judge David D. Cleary has set an August 2 deadline for the entities to submit their schedules of assets and liabilities, along with statements of financial affairs. The filings indicate that no funds will be available for unsecured creditors after administrative expenses are covered.
Blue Thunder Trucking’s closure and subsequent bankruptcy filings underscore the financial difficulties faced by the trucking industry, especially for small and mid-sized companies dealing with regulatory and operational pressures.
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