Integrated Freight blames Cross Creek foreclosure for shut down

March 22, 2012

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.

About the Author

Deborah Whistler

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Leveraging telematics to get the most from insurance

Fleet owners are quickly adopting telematics as part of their risk mitigation strategy. Here’s why.

Reliable EV Charging Solution for Last-Mile Delivery Fleets

Selecting the right EV charging infrastructure and the right partner to best solve your needs are critical. Learn which solution PepsiCo is choosing to power their fleet and help...

Overcoming Common Roadblocks Associated with Fleet Electrification at Scale

Fleets in the United States, are increasingly transitioning from internal combustion engine vehicles to electric vehicles. While this shift presents challenges, there are strategies...

Report: The 2024 State of Heavy-Duty Repair

From capitalizing on the latest revenue trends to implementing strategic financial planning—this report serves as a roadmap for navigating the challenges and opportunities of ...