O & S Bankrupt

So O&S is asking to do a "percentage lease agreement" with Prime? Are they giving up their MC and "leasing on"?

$350K in unpaid fuel purchases - $100K for trailer leases?

I mean - were these guys actually HAULING ANYTHING?

See what happens when you "haul cheap freight"?

Find it difficult to believe that "they" didn't see this coming.

OTOH - the leased units are not listed as a "liability" - which means another "shell company" is the lease/lender )(or the financing was done through an actual REAL lease/lender) - and the lease/OO's may actually be afforded the "option" of signing on (amending) their lease agreements to make Prime their carrier (for whatever that's worth) - depending on whether or not O&S is actually going to keep their authority active.

Guys would be better off signing on with BBB...

Rick

 

These guys brokered loads. I never hauled for them but I did see loads posted by them. I hope nobody got/gets burnt but seems unlikely if they were BK.

 

The article referenced by the OP didn't even list debts owed on brokered loads. I'd suspect it was done under (yet) another "corporate veil".

Once the bond is exhausted - you go after the broker.

Guess it's not going to be as much of a mess as when Arrow went under (leaving drivers stranded all over the country).

http://www.tulsaworld.com/business/article.aspx?subjectid=54&articleid=20120108_54_E5_CUTLIN242367

Now THERE was a real frikkin MESS...

Rick

 

$50k worth of assets, you mean to tell me that this company doesn't have any cash on hand, they obviously weren't paying their fuel bills. Tell me this guy doesn't know his way around the bankruptcy code & how to hide money.

 

Entering into a Lease Purchase contract is like a barfight- anything can happen before it's over, and it probably won't be over soon.

 

Was thinking the same thing.

 

yeah no joke

 

Sure we do. There's a buyout clause written into Prime's lease contract. Get your own financing, or you can continue payments to finish the purchase. One can also enter a lease/purchase contract as well.

My guess is that Prime will honor the contracts with the O&S drivers as written.

 

it all depends on how the contract is wriiten, and i bet there's no provision for company bankruptcy.

start looking for a job.