We know about them shutting down and owing money.
Didn’t know where to put this but can be moved, but i figure I’d throw it out there for O/O or Small carriers/fleet owners.
Might learn how to keep it from happening going forward and seeing how to maybe get your money.
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I saw this elsewhere and looked into it. I didn't look up court docs like the video guy did. I found an article on one of the trade rags that tried to explain it, and it's still clear as mud. Something about two brothers backing the factoring business with a family trust. Brother #2 independently changed the trust and stuck in someone he liked to operate the factoring business, then I guess brother #1 retaliated by burning it down figuratively. Locking the doors and firing everyone. At least that's what I took away from it. A really weird turn of events, to be sure.
My prediction is: the trustee will quickly find a buyer for the failed company, and incite them with some bonus pay to resume the failed outfit's business dealings post-haste. Within a week or two, there will be an announcement to all parties that the new owners are _____. Meet the new boss, same as the old boss. Video guy thinking the judge will order NOA's to be revoked is having a wet dream. That will never happen.
No amount of money, borrowed or not, will fix that. Factoring just accelerates their path to failure.
I wasn’t Judging them, it’s unfortunate situation, I thought maybe it’d give someone an idea about contact the courts because they’re officially under contract of all loads to be paid to a defunct company.
“Because thou sayest, I am rich, and increased with goods, and have need of nothing; and knowest not that thou art wretched, and miserable, and poor, and blind, and naked:”
“For you always have the poor with you, but you will not always have me.”Big Road Skateboard Thanks this.
You kinda optimistic.. It pretty hard to sue or recover funds from a corporation that has no funds and is probably going to be protected bankruptcy laws..
Probably nobody will held personally accountable since this is a corporation.. I'am sure the management didn't wake up 1 morning and say .. I think we're gonna call it quits today.... This was a planned event and the capital that Corporation had is probably in a off shore account
Face it they are the Bernie Madoff off the trucking industrygentleroger Thanks this.
According to the receiver, all CoreFund staff are back in the offices today and working with the receiver to begin to reconcile accounts and payments. The receiver stated the goal is to have this done by the end of this week, Friday 8/5/22. At that point they will be able to begin the process of terminations. Attorney Jason Medley also stated his team has an emergency order ready to be filed Friday night if it doesn’t look like progress with terminations have been made.
The receiver also stated that they are fine with clients calling their CoreFund account executive and requesting a buyout as well. CoreFund will want to try and keep you, but will not force you to stay even if your contract is not up for renewal yet.
Q. What if I have invoices that need to be sent in? Do I go ahead and send to CoreFund, or wait?
A. Wait. If you send them to CoreFund they will be placed in an already long queue. Unless you plan on staying with CoreFund, it is best to hold onto those invoice and send them to your new factor when you receive your release.
Q. Will I get released this week?
A. It does not look like it at the moment.
Q. Can I invoice loads directly and have the broker pay me?
A. If you have ever done a load for this broker in the past, they likely still have a NOA on file and will not pay you. If this is a new broker for you that does not have a CoreFund NOA then it is likely you can invoice directly and get paid.
Q. Can any other factoring company factor my loads right now.
A. Can they? Yes. Will they? Not likely. As with the previous question, if a factoring company does factor a load for you without a CoreFund release and new NOA then that factor may never get paid. There are some possible legal ramifications for the new factor as well. Can they factor new brokers? Possibly.
Q. Can any factoring company get me a CoreFund release faster?
A. NO! Unfortunately, there will be a very small number of factoring companies that may try and take advantage of the situation and make claims that are completely not true. Our best advise is to speak with an attorney.
The two attorneys we suggest are Jason Medley and David Jencks
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