Between Oct. 2 and Oct. 10, five transportation companies sought Chapter 11 protection — a burst of filings that compressed into less than two weeks, according to a review highlighted by FreightWaves. The wave spans multiple regions and business models, underscoring how tighter credit and persistent cost pressure continue to squeeze small and midsize operators as peak season approaches.
Fresh court and industry records over the last 72 hours provide added color on several of the cases. In Texas, GEC Transport Solutions of Pharr entered Chapter 11 on Oct. 6 and told the court it intends to keep running while it restructures. Recent industry intel shows the carrier reported assets and liabilities both in the $1 million to $10 million range, with two of its largest unsecured debts tied to individual loans; the company’s counsel said operations are continuing. For shippers and brokers moving along the border, that signals a restructure-not-liquidate posture that typically aims to preserve capacity through the process.
Propel Trucking, based in Russellville, Arkansas, filed on Oct. 2 with a far thinner balance sheet — estimated assets under $50,000 against $1 million to $10 million in liabilities — and a lender stack that includes BMO (largest unsecured claim), plus Wells Fargo Equipment Finance and Wintrust Specialty Finance. Federal safety data cited in the same reporting show Propel’s two-year vehicle and driver out-of-service rates sitting above national averages, an operational red flag that often correlates with higher maintenance outlays and insurance costs.
Houston saw two petitions on Oct. 9: R&R Transport & Logistics LLP and affiliated R&R Transport Inc. Both cases were filed in the Southern District of Texas and identified as small-business reorganizations, a path frequently used by closely held fleets to move faster and with lower costs than a traditional Chapter 11. For Texas shippers accustomed to tapping these operators for short-haul and local capacity, the paired filings merit contingency planning around equipment availability and payment terms.
A fifth fresh case arrived late in the window from New York: Royal G.L.S. Corp. filed Chapter 11 on Oct. 10 in the Southern District of New York. Court listings posted Tuesday, Oct. 14, confirm the docket, and a separate registry update on Monday, Oct. 13, notes the company previously attempted Chapter 11 in 2024 before that case was dismissed — a detail lenders and counterparties will weigh as they assess recovery prospects.
Zooming out, the filing burst arrives as overall business bankruptcies continue edging toward pre-pandemic rhythms, even while commercial Chapter 11s have cooled modestly year to date. New data published Oct. 12 show total commercial filings up 4% through the first nine months of 2025 versus the same period last year, while commercial Chapter 11s are down 3%. Notably for smaller carriers, Subchapter V elections — the streamlined small-business track many trucking petitioners use — jumped 40% year over year in September, pointing to wider adoption of the tool as interest costs and access to capital remain challenging.
Why this matters to trucking: concentrated October stress tells us the cycle has shifted from one-off failures to a steady drip of restructurings where factors and equipment financiers figure prominently. When a carrier enters Chapter 11 but keeps running, counterparties face two immediate questions: Can freight still move reliably (drivers, maintenance, fuel cards) and how will the debtor prioritize payments under court supervision? The recent cases show different starting points — from GEC’s continue-to-operate plan to Propel’s highly leveraged profile — but a common theme of elevated finance and operating burdens converging at once. For brokers and shippers, that argues for tighter credit monitoring, diversifying carrier rosters in affected lanes, and building glide paths to shift volume if a reorganization stalls. For carriers, it’s a reminder that strong safety and maintenance metrics aren’t just compliance badges — they cascade directly into insurance pricing, lender confidence, and, ultimately, staying power when the market wobbles.
Sources: FreightWaves, IndexBox, MonitorDaily, PacerMonitor
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