Integrated Freight Corp. has closed its Sarasota, Fl, headquarters and top executives have resigned stemming from financial problems caused by the acquisition of Oregon subsidiary Cross Creek Trucking, according to a report in the Bradenton Herald.
Integrated Freight acquired Cross Creek, based in Oregon, last year after the carrier was shut down in December by federal safety regulators over licensing and insurance issues.
Integrated Freight's latest SEC filing March 9 stated, “the assets we acquired in the purchase of Cross Creek Trucking Inc., which secured obligations of Cross Creek, have been foreclosed upon and recovered by the respective Cross Creek creditors.”
“We have substantial unpaid obligations,” Integrated Freight said in the filing. “We are seeking additional funding from our existing creditors with which to pay for and continue operations.”
The company said that its only operations were those of two other wholly owned subsidiaries.
“We have surrendered possession of our computer servers and peripheral equipment to our vendor. We have substantial unpaid obligations,” the SEC filing said.
Integrated Freight CEO and board chairman Paul Henley has resigned from his positions with the company, according to SEC documents, and two other independent directors, John Bagalay and Kimberly Bors, have also resigned.
The Federal Motor Carrier Safety Administration seized Cross Creek’s operating license Dec. 19 because the company failed to meet its $750,000 insurance requirement. More than 150 drivers and 20 office workers at the Oregon facility were laid off at the time.
Integrated reported $19 million in total assets, with $26.9 million in total liabilities. The company also recorded a net loss of $2.8 million for the three quarters ended Sept. 30, the latest financial report with the SEC.
The loss was attributed to the Cross Creek acquisition and liabilities surrounding a pending lawsuit involving Smith Systems Transportation, Integrated’s subsidiary in Nebraska.
Smith Systems is now battling massive legal costs tied to a hazardous waste spill in Sacramento, which is estimated to be more than $1 million, SEC records show.
