In January 2025, Miranda Logistics Enterprise Inc. and its affiliate Grit & Gravel Inc., both based in California, filed for Chapter 11 bankruptcy protection. The companies, primarily involved in earthwork, excavation, and demolition services, faced severe financial difficulties stemming from an ill-managed factoring agreement with Mission Valley Bank (MVB). The agreement required the companies to sell their accounts receivable for immediate cash flow, but this left them vulnerable when clients failed to pay. As a result, Miranda Logistics and Grit & Gravel were unable to meet financial obligations, leading to the bankruptcy filings. Miranda Logistics has liabilities ranging from $1 million to $10 million, while Grit & Gravel faces debts of over $1 million. The case underscores the risks associated with factoring and rapid business expansion. The companies will now undergo a restructuring process, with the court overseeing how their debts will be handled, potentially affecting employees, creditors, and operations.
For full details, visit:
https://48x48skid.blogspot.com/2025/01/california-trucking-companies-face.html