Twin Express Auction After $19M Default

After a hefty $19M loan default, the 35-year-old trucking firm Twin Express faces a complete asset liquidation. Here's a quick rundown of the fallout:

• Auction Ahead: Twin Express’s fleet and assets are hitting the auction block. Set for Tuesday, this online event spells the end for the Minnesota-based company.
• Loan Woes: A defaulted $19 million loan has led to this step, following the recent purchase of 26 new Kenworth tractors.

Court filings reveal that private-equity-owned Twin Express, boasting 72 power units and 73 drivers, ran into trouble after its acquisition by Dan K. Eberhart of Eberhart Capital LLC in 2012. The company's recent woes were cemented by the voluntary revocation of their FMCSA carrier authorities last month.

Safety inspections over the past two years present a troubling picture: Twin Express's out-of-service vehicle rate stood at 36.4%, surpassing the national average. Despite this, their driver out-of-service rate was below the national figure at 1.7%.

The upcoming auction, managed by Jeff Martin Auctioneers Inc., will see over 206 items up for grabs, including the newly acquired Kenworth semi trucks. As the industry watches, Twin Express's saga serves as a stark reminder of the volatility within the trucking business.

Source: FreightWaves