Following a notice of default and a bank lawsuit seeking repayment, Dolche Truckload Corp. filed for Chapter 11 bankruptcy, a move its owner says will help the carrier renegotiate its debts.
“We are fully operational,” founder and owner Desi Evans told Trucking Dive. “This is not a shutdown. It’s a restructuring of our debts.”
The Illinois-based carrier reported over $1.9 million in assets and $3.4 million in liabilities, according to the June 15 filing. No layoffs are occurring, and the company is continuing with business as usual, Evans said.
Dolche was founded in 2010, according to its website, and had 57 trucks and 60 drivers as of last July, per a Federal Motor Carrier Safety Administration database.
The largest creditor, M&T Bank, is owed over $1.9 million, according to the bankruptcy petition. The financial institution has secured claims regarding nine 2023 Freightliner trucks and one Volvo 2023 truck, valued at $800,000, along with nine 2020 Wabash refrigerated trailers for equipment valued at $190,000, the filing said.
In February, M&T Bank subsidiary M&T Capital and Leasing sued Dolche, alleging breach of contract. The leasing corporation sent a notice of default letter in November, requiring $1.89 million to pay off the remaining balance. That demand also called for additional costs that include default interest and attorneys’ fees.
The alleged defaults are tied to a five-year loan for 10 tractors in December 2022 requiring $40,599.30 monthly payments and a six-year loan for 10 trailers from September 2020 requiring $10,007.86 monthly payments, according to the M&T Lawsuit.
“Dolche wrongfully retains possession and control of the [equipment],” the lawsuit said, adding that as each day passes, the equipment continues to depreciate.
Dolche is using a provision of the bankruptcy code for small businesses called Subchapter V, according to the filing. The provision, available since 2020, can speed up the process and help a proceeding be more affordable than other bankruptcies.
Evans said the bankruptcy proceeding could be finished in six months.
