A Texas-based carrier recently filed for Chapter 11 bankruptcy protection, despite being approved for between $350,000 and $1 million through the U.S. Small Business Administration’s Paycheck Protection Program (PPP) to stay afloat during the COVID-19 pandemic.
This marks the second time in four years that family-owned Grimmett Brothers Inc. of Snyder, Texas, has filed bankruptcy, according to court filings.
Grimmett Brothers, a heavy-haul and earth-moving company, filed its petition in the U.S. Bankruptcy Court for the Northern District of Texas.
According to the Federal Motor Carrier Safety Administration SAFER website, Grimmett Brothers is an intrastate carrier with 34 power units and 27 drivers.
In its filing, Grimmett Brothers lists both its assets and liabilities as between $1 million and $10 million. It states it has up to 99 creditors.
The company’s director and stockholder, Allen Grimmett, did not return FreightWaves’ request seeking comment. He is listed as one of the company’s top 20 unsecured creditors, claiming he is owed nearly $147,000 for parts, fuel and utilities.
Small carriers listed as unsecured creditors
Two small carriers are also listed as unsecured creditors in the Grimmett Brothers bankruptcy filing. Lynex Trucking Inc. of Odessa, Texas, has five trucks and three drivers and is owed more than $32,000. JAS Trucking, also located in Odessa, is owed nearly $20,000.
Grimmett Brothers previously filed for Chapter 11 protection in August 2016. In that filing, the company listed its assets as between $10 million and $50 million and its liabilities as between $1 million and $10 million. It listed up to 199 creditors in the filing. Billy Grimmett was listed as president of the company in the trucking company’s 2016 bankruptcy petition.
The trucking company was approved for a PPP loan on April 6 through SBA lender Texas National Bank.