Transportation services company Wynne Transportation Holdings, LLC, has filed for Chapter 11 bankruptcy protection in Delaware, citing financial strain from a $32.8 million arbitration judgment and delayed contracts. The judgment stems from a partnership dispute with former subcontractor GETZ Transport Solutions, LLC.
Chapter 11 Filing Amid Mounting Financial Pressures
Wynne Transportation sought Chapter 11 protection on Friday, according to a declaration by Chief Restructuring Officer M. Benjamin Jones filed Monday. The company faced financial challenges after being ordered to pay over $32 million in damages to GETZ, alongside additional litigation costs. Compounding matters, two major contracts scheduled for the latter half of 2024 have been postponed to early 2025.
“These setbacks, particularly the contract delays, have drastically affected our business operations and short-term liquidity,” Jones stated. He added that the company secured a $1 million loan to sustain operations ahead of the bankruptcy filing and to access debtor-in-possession (DIP) financing.
Partnership Dispute with GETZ Over Government Contracts
The dispute with GETZ centered on a partnership agreement tied to a government contract. Under the agreement, Wynne and GETZ shared proceeds in a 55%-45% split for providing transportation services during emergencies, including Texas’s all-hazard response operations.
