[CLBS] CH 11 - has anyone had a CH 11 for a a trucking co which has to pay fuel every day?

[Randy French]

This is a tough issue for any business in this position.  Use of cash
collateral is a first day motion, that you prepare and file with the
petition.  When I was in a  similar circumstance, with Ultimate Transport, I
called the court and ascertained (also asked and found out) when both judges
would be in chambers in the correct area, which was Boise.  If you have a ch
11 in an area where only one of the judges hears cases, then  you need to
find out when he will be in chambers at a location that works for you.
Then, you can alert the Court's secretary either before you file or the
moment that you file, that you have a motion for use of cash collateral that
is critical to be heard as soon as possible.

You should pick that date to file that lets you get to the judge as quickly
as possible.  You might arrange for all trucks to fill up by or at 7:30 a.m.
on that day, then file, then see if you can get into court that day to get
use of cash collateral until a final hearing is held on use of cash
collateral.

You should also call counsel for the lender if you know who that is and try
to get a stip to use cash collateral until a final hearing can be held.  The
lender will get an security interest in post-petition accts receivable to
the extent of use of cash collateral.  That is the adequate protection they
get for the use of cash collateral.

Good luck.

Thanks.
Randy French

Law Office of Randal J. French, P.C.
Attorneys at Law
P.O. Box 836 Boise, ID 83701 
(208) 859-6881  

IMPORTANT NOTICE: This communication, including any attachments, may contain
information that may be confidential or privileged and is intended solely
for the entity or individual to whom it is addressed. If you are NOT the
intended recipient, you must delete this message and attachments and are
hereby notified that any disclosure, copying, or distribution of this
message is strictly prohibited. Nothing in this email, including any
attachment, is to be a legally binding signature.





-----Original Message-----
From: CLBS [mailto:clbs-bounces at admws.idaho.gov] On Behalf Of D. Blair Clark
Sent: Monday, October 03, 2016 12:07 PM
To: holly at roarklawboise.com; clbs at admws.idaho.gov
Subject: Re: [CLBS] CH 11 - has anyone had a CH 11 for a a trucking co which
has to pay fuel every day?

Do they have any sort of T-Check system any more?  Who's the credit card
issuer?  Does that lender have a secured position in anything?  I have had
this problem come up but it's been quite a while ago.  We were able to work
it out with the lender who was also the card issuer.  

D. Blair Clark
LAW OFFICES OF D. BLAIR CLARK PC
1513 Tyrell Lane, Suite 130
Boise, ID 83706
Phone:  208-475-2050
Fax:  208-475-2055


-----Original Message-----
From: CLBS [mailto:clbs-bounces at admws.idaho.gov] On Behalf Of Holly Roark
Sent: Monday, October 3, 2016 11:03 AM
To: clbs at admws.idaho.gov
Subject: [CLBS] CH 11 - has anyone had a CH 11 for a a trucking co which has
to pay fuel every day?

My clients are having a hard time with any filing date I propose because (1)
they can't use cash collateral until we get court permission, and (2) all
their truckers on the road pay for gas every day with their corporate credit
cards which will likely be cut off shortly after we file. 

 

Has anyone dealt with this issue in a Chapter 11? How can these trucks
continue to operate and pay for fuel without credit cards? Also, the Debtor
can't just give these guys cash each day, even with permission for use of
cash collateral. It's about $400/per truck each day.

 

Any ideas?

Best regards,

HOLLY ROARK

Attorney at Law 

Certified Bankruptcy Specialist -

By the State Bar of California Board of Legal Specialization

 

ROARK LAW OFFICES

950 Bannock Street | Suite 1100 | Boise, Idaho 83702

Phone:  (208) 536-3638

Fax: (310) 553-2601

E-mail:   <mailto:holly at roarklawboise.com> holly at roarklawboise.com Website:
<http://www.roarklawboise.com/> www.roarklawboise.com

 

*This communication does not create an attorney-client relationship.

Unless you have signed a retainer agreement with Roark Law Offices, this 

communication may not be private or privileged.

 

_______________________________________________
CLBS mailing list
CLBS at admws.idaho.gov
http://admws.idaho.gov/mailman/listinfo/clbs

_______________________________________________
CLBS mailing list
CLBS at admws.idaho.gov
http://admws.idaho.gov/mailman/listinfo/clbs