Truckers, logistics firms among creditors Greenerways owes millions

Trucking companies and logistics firms are among hundreds of creditors collectively owed millions of dollars after a California-based organic products manufacturer recently filed Chapter 7.

Greenerways LLC of Los Angeles filed its petition in the U.S. Bankruptcy Court for the Central District of California on March 9. Its parent company, Beacon Organics, and its affiliate, Choice Essential Oils, also filed for bankruptcy protection on the same day.

According to the company’s website, it sold organic insect repellent, all-purpose cleaning and body oil products.

In its filing, Greenerways lists assets of up to $10 million and liabilities of $10 million to $50 million. The company, which has up to 999 creditors, maintains that no funds will be available for distribution to unsecured creditors after administrative fees are paid.

As of publication, Hamid R. Rafatjoo, attorney for Greenerways, had not responded to FreightWaves’ request seeking comment. 

The petition lists Andrew Hallowell, CEO of Arcadia Funds, as a member of the board of managers for Greenerways.

The company states that it owes pallet manufacturer CHEP USA of Orlando, Florida, more than $179,000; Gerson’s LLC Trucking of Norwalk, California, $44,000; FedEx of Pittsburgh, $28,000; and NU Logistics of Carson, California, $13,000.

At least eight lawsuits have been filed against Greenerways for collection of unpaid loans and breach-of-contract suits in California.

A meeting with creditors is scheduled for April 7.

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Source: freightwaves - Truckers, logistics firms among creditors Greenerways owes millions
Editor: Clarissa Hawes, Senior Editor, Investigations and Enterprise