300 jobs at risk in C. Bean Transport bankruptcy reorganization
by March 19, 2010 9:51 am 477 views
The C. Bean Transport bankruptcy filing shows that the jobs of 300 people — many in the Fort Smith area — are in jeopardy if a reorganization plan is not successful.
Little Rock-based Bell Receivers was given control of C. Bean Transport on Feb. 22 by U.S. District Judge Robert T. Dawson after C. Bean defaulted on a $5.6 million loan with South Bend, Ind.-based 1st Source Bank.
On Wednesday (Mar. 17), Bell Receivers closed the trucking operations and kept open warehouse operations. On the same day, company officers Curt Bean, Tim Bean and Grady Bean approved filing for Chapter 11 (reorganization) bankruptcy, which was filed by Tulsa attorney Chad Kutmas in the Arkansas Western District bankruptcy court.
Richard Bell, owner of Bell Receivers, issued this statement late Thursday: “The receivership management terminated Wednesday with the filing of bankruptcy by C. Bean Transport. Bell Receivers would like to thank the employees of the company, vendors, lenders, attorneys and other providers for their assistance and help during the liquidation of the over the road hauling division. Bean will continue to operate its warehouse facilities in Fort Smith, Arkansas under the provisions of the bankruptcy filing. My thoughts remain with the employees and their families as well as all others involved in this very difficult decision.”
The initial bankruptcy filing is incomplete. Kutmas has asked to extend the deadline for filing schedules (information about creditors, accounts receivable, etc.) to May 15.
Information in the bankruptcy filing indicates the number of estimated creditors between 200-999; estimated assets in the $10 million to $50 million range; and estimated liabilities in the $10 million to $50 million range. The initial list of unsecured creditors shows C. Bean owing more than $909,000, The list includes Comdata Network-Money Card Services ($236,986), Southern Tire Mart in Memphis ($180,173), First National Bank of Fort Smith ($28,096), Travelodge of Fort Smith ($21,784), and the Arkansas Development Finance Authority ($13,607).
The filing also clarifies the company’s recent operations and employment: “C. Bean is a provider of trucking and transportation services and owns and manages certain real estate with operations and facilities centered in Sebastian County, Arkansas. Prior to filing bankruptcy, C. Bean employed a total of 300 persons, and operated 200 trucks and 500 trailers that made deliveries throughout the lower 48 states.”
The company once had a large fleet and warehousing operation in Fort Smith — at the corner of Jenny Lind and Cavanaugh Roads — with several hundred trucks and employees. But the national freight recession that began in October 2006 has resulted in more than 6,800 trucking company failures between 2007-2009.