Trucking, logistics and airfreight companies are collectively owed hundreds of thousands of dollars after a Texas freight forwarder filed Chapter 11 bankruptcy earlier this week.
Atlantic Worldwide Shipping LLC of Houston filed its petition in the U.S. Bankruptcy Court for the Southern District of Texas on Tuesday.
In its filing, the freight forwarder lists its assets as between $100,000 and $500,000 and its liabilities as between $1 million and $10 million. The company states that it has up to 49 creditors and maintains that funds will be available for distribution to unsecured creditors.
The freight forwarder’s list of secured creditors includes North Mill Credit Trust of Mill Valley, California, owed nearly $87,000 for a 2020 Freightliner and the U.S. Small Business Administration, headquartered in Washington, owed $149,000.
Among Atlantic Worldwide Shipping’s top nonpriority unsecured creditors are: Al Shamali International Freight Services LLC of Dubai, United Arab Emirates, owed more than $1.4 million; logistics payment platform PayCargo LLC of Miami, owed over $745,000; and CaroTrans International of Houston, owed more than $18,000. It also owes Landstar Systems Inc. of Jacksonville, Florida, nearly $8,000.
Atlantic Worldwide Shipping’s bankruptcy petition lists several trucking companies among its priority unsecured creditors, which include: Kukhianidze Transportation of Morrisville, Pennsylvania, owed nearly $4,300; Z7 Transportation Inc. of Glendale, California, owed over $2,000; and Manukyan Transportation Inc., also of Glendale, owed $1,900.
According to Atlantic Worldwide Shipping’s financials, its gross revenues from Jan. 1 until its bankruptcy filing date are over $450,000. Its petition states the company made nearly $2.1 million in 2020 and around $2.2 million in 2019.
Madhavadas Nair is listed as the general manager of Atlantic Worldwide Shipping. As of publication, Nair did not respond to FreightWaves’ request seeking comment.
Legal woes
The company is battling four breach of contract lawsuits that are pending against Atlantic Worldwide Shipping and Prijl Kumar Sasidharan, a codebtor of the company, from Missouri City, Texas.
Merchant Capital of Brooklyn, New York, filed suit in Nassau County Supreme Court in Mineola, New York, for nearly $105,000.
Breach of contract suits filed against Atlantic Worldwide Shipping in Kings County Supreme Court in Brooklyn are by Tiger Capital Group LLC of Flushing, New York, owed nearly $410,000; Stat Capital Funding of Brooklyn, owed nearly $207,000; and Novus Capital Funding LLC of New City, New York, owed over $70,000.
A creditors’ meeting is scheduled for Aug. 26.
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