Sharp noted that mounting debt service obligations and the costs of defending against legal actions further strained the company’s finances, prompting the Chapter 11 filing.
Bankruptcy Proceedings
The case is assigned to U.S. Bankruptcy Judge Christopher M. Lopez, with a first-day hearing scheduled remotely for 2 p.m. Central time on Friday. The company is seeking to restructure its obligations while continuing operations during the bankruptcy process.
KAL Freight is represented in the bankruptcy proceedings by a team from Pachulski Stang Ziehl & Jones LLP, including attorneys Teddy M. Kapur, Steven W. Golden, Benjamin L. Wallen, Richard M. Pachulski, Jeffrey W. Dulberg, and Gregory V. Demo.
Industry Impact
KAL Freight’s filing highlights ongoing challenges in the trucking industry, where companies have struggled with fluctuating demand and rising operational costs post-pandemic. The case underscores the risks of rapid expansion during temporary market booms and the importance of managing debt in a volatile industry.
