Flatbed carrier Montgomery Transport and affiliated businesses owe tens of millions of dollars to two banks, according to an amended complaint filed Oct. 17.
The carrier is the flagship entity of Montgomery Transportation Group, which had shuttered locations earlier this month and released its workers while drivers abandoned vehicles across the country, the lawsuit said.
The shutdown came after a potential sale of the company did not come to fruition, according to the filing. Other news outlets had previously reported Montgomery Transport's impending closure, citing memos, YouTube reports and anonymous sourcing.
The transportation businesses borrowed or had access to $25 million from two banks in 2022. The money is owed to Mississippi-headquartered Cadence Bank and Alabama-based Regions Bank.
A total amount owed of $26.7 million does not include accrued interest, charges, fees and other expenses, according to the suit.
The carrier’s assets include 449 power units and 458 drivers as of Sept. 12, according to a Federal Motor Carrier Safety Administration database, and affiliated businesses operated several hundred more tractors, the suit said.\
When asked by Trucking Dive whether Alabama has received a Worker Adjustment and Retraining Notification notice from Montgomery Transport or Montgomery Transportation Group, a labor department spokesperson said Oct. 21 the state hadn't received anything yet.
Banks suing the transportation businesses asked a federal court in Alabama to appoint a third-party receiver to oversee and protect the businesses’ assets.
“[T]he Property, Operations and Assets are in imminent danger of significant diminution, impairment and, overall, loss of value,” the suit said, adding that the collateral is in peril.
Rollins Montgomery, who helped build the company, issued a statement about the issue on Oct. 9, saying he hadn’t had a controlling interest in the company since February 2022. A representative didn’t immediately return messages.
“There has also been speculation suggesting that my actions, including recent litigation with the majority owners of Montgomery Transport and other parties, are somehow responsible for the company's challenges,” he said in the statement. “That simply is not true.”
In February 2022, private equity firm One Equity Partners announced it had invested in Montgomery Transport, saying it would continue to work with Rollins Montgomery.
Montgomery Transportation announced in May 2022 that it formed Montgomery Transportation Group, which also comprised MT Dedicated, MT Select, RM Logistics, M1 and Montgomery Logistics.
In March 2024, Montgomery Transportation Group appointed Joe Jaska, a former DB Schenker executive, as CEO.
The business was once known for transporting steel, lumber, building materials, steel beams and coil, One Equity Partners previously noted. The investment firm declined to comment.
