Trucking company declares bankruptcy two months after lawsuit alleges it didn’t pay debts

A major Texas trucking company has filed for bankruptcy after being sued by its creditors for not paying millions in debts.  

Balkan Express and its sister company Balkan Logistics have filed for Chapter 11 bankruptcy in the Northern District of Texas. 

The Fort Worth-based dry van trucking company employs 166 drivers and has around 170 trucks which ship freight across 48 states, the company confirmed on Tuesday. 

The business, which began operating in 2007, is looking to reorganize its more than $22 million-worth of debt while continuing to operate. 

It comes after Balkan Express was sued by one of its creditors, M&T Capital, for allegedly not repaying $4.2 million in loans, interest and attorney fees relating to the lawsuit.

‘The reason we are in bankruptcy is because of our loans, the cash flow issues, but there is no risk to our driver’s jobs,’ Daniel Ivandic, general manager and controller at Balkan told DailyMail.com. ‘We expect to be out of bankruptcy in about three to six months,’ he added. 

It comes a year after 500 Texas truckers were fired en masse after a truck and logistics company abruptly shuttered. 

Several people claiming to be former drivers at Balkan have accused the company of withholding pay and benefits as well as mismanagement.   

Balkan is looking to reorganize its $22 million-worth of debt

‘I left the company a couple years ago. I was there for 10 years I knew it was just a matter of time before something like this happened,’ Cindy Tone, an alleged former employee, wrote online. 

Tone claimed that vacation days were taken away from drivers as the company struggled financially.  

Another user claiming to be a former employee also alleged that drivers still working for Balkan Express say they have not been paid on time since the company was approved for Chapter 11 bankruptcy in April. 

‘Drivers are fed up and about to take it to the lead investigating fed agency in this country!’ the user named Constintino alleged online. 

Balkan Express denied the claims made by the alleged former employees.  

‘We never had vacation days to cut as drivers are paid by mile,’ Ivandic said. 

’95 percent of the drivers we had when we filed for bankruptcy are still with us, they are sticking with us,’ he added. 

Balkan Express and Balkan Logistics listed their assets as between $10 million and $50 million in the bankruptcy filing. 

‘The reason we are in bankruptcy is because of our loans, the cash flow issues, but there is no risk to our driver’s jobs,’ Daniel Ivandic, general manager and controller at Balkan told DailyMail.com

Balkan filed for Chapter 11 bankruptcy but will continue to operate as normal 

The petition also said the companies have up to 49 creditors, and that funds will be available to unsecured creditors once administrative fees have been paid.

Trucking companies have suffered in recent years as reduced demand for shipping and lower freight rates have combined with the rising costs of labor, fuel, and insurance to weigh on profits. 

Balkan joins a series of other trucking companies that have filed for bankruptcy or shut down operations entirely this year. 

Illinois-based trucking company LTI Trucking closed in April leaving 250 drivers without work, The Street reported.   

The Florida-based trucking company Davis Express Inc., meanwhile, made its final deliveries on April 23.

The company’s owner revealed in a Facebook post that he wanted to retire and no longer wanted to wait for business to turn around or to seek a buyer. 

Davis Express employees will continue to receive pay and benefits until June 15, the company said. 

In 2024, truck and logistics company US Logistics Solutions abruptly shut – affecting more than 1,200 workers – just three years after being bought by private equity. 

Around 500 were truck drivers, and the rest were a mixture of warehouse, dock and office workers at the Texas-based company.