Tensions arose after the state launched Operation Lone Star in 2021, a multibillion-dollar initiative addressing border crossings. Wynne unilaterally ended its partnership with GETZ in January 2023—two years before the contract was set to expire—following failed negotiations to adjust the profit split.
An arbitrator ruled in July that Wynne had terminated the partnership without cause, awarding GETZ $32.8 million in damages.
Operational and Financial Fallout
The arbitration judgment and subsequent legal fees drained Wynne’s financial resources. Delayed contracts, critical to the company’s revenue streams, added further pressure. According to Jones, the Chapter 11 filing was essential to address the financial fallout, including the hefty arbitration award, while restructuring operations for long-term stability.
The Gemini Term Loan, secured as a temporary lifeline, allowed Wynne to maintain operations and initiate the bankruptcy process.
What’s Next for Wynne Transportation?
The Chapter 11 case will enable Wynne to reorganize and explore strategic options, including restructuring its debts and renegotiating contracts. The bankruptcy proceedings will also provide a framework to address ongoing disputes, particularly with GETZ.
