Wynne Transportation Holdings: $32.8M Judgment Ends 46-Day Chapter 11

Wynne Transportation Holdings, LLC, the Irving, Texas-based crew change and industrial transportation company that operated as one of the primary contractors for Governor Greg Abbott's Operation Lone Star migrant busing program, filed for chapter 11 bankruptcy on January 12, 2025, in the U.S. Bankruptcy Court for the District of Delaware. The filing followed a $32.8 million arbitration judgment in favor of former partner GETZ Transport Solutions, which a Harris County court confirmed one month before the bankruptcy filing. The judgment and related asset freeze followed a period in which the company reported approximately $17 million in average annual EBITDA.

Founded in 1995 by Joan Wynne, whose husband Bedford Wynne Sr. was an original owner and founder of the NFL's Dallas Cowboys, Wynne Transportation provided crew change services to the energy sector. The company's involvement in Operation Lone Star began in 2021 when Governor Abbott launched the multibillion-dollar Texas border initiative that included busing more than 100,000 migrants to sanctuary cities across the United States. Wynne Transportation and GETZ Transport Solutions jointly bid on state transportation contracts, and a dispute over the profit split later led to arbitration and a $32.8 million award.

The case converted to chapter 7 46 days after the chapter 11 filing, after the debtors obtained interim DIP financing from majority equity owner Gemini Investors VI. The company reported a 315-vehicle fleet, facilities across five states, and average annual EBITDA of approximately $17 million from 2021 to 2023 before the conversion.

Company Background and History

Wynne Transportation traces its roots to 1995, when Joan Wynne founded the company after leaving a career in real estate. Bedford Wynne Sr., Joan's husband, was an original owner and founder of the NFL's Dallas Cowboys, and the family had a background in the Dallas hospitality community. Bedford Wynne Jr. served as President of Wynne Transportation's Charters and Events division, with more than 20 years of transportation experience.

By 2019, the company had been restructured under its current corporate form—Wynne Transportation Holdings, LLC—with operations conducted through multiple affiliated entities. Operating under the trade name "U.S. Crew Change," the company provides turnkey ground transportation solutions for industrial and large commercial clients. Its fleet of 315 vehicles—including motorcoaches, minibuses, and vans—served clients in liquid natural gas, clean energy, petrochemical, mining, and traditional oil and gas projects.

Geographic footprint. The company maintained operating facilities across five states near major energy production regions: Orange, Texas (Gulf Coast petrochemical corridor); Butler, Pennsylvania (Appalachian natural gas); Lake Charles, Louisiana (LNG export facilities); Gillette, Wyoming (Powder River Basin coal and oil); and Elko, Nevada (mining operations). The footprint supported crew change services for industrial sites.

Ownership structure. By the time of the bankruptcy filing, Gemini Investors VI, L.P. held a 90% equity stake in the company, with Bedford Wynne retaining 9.1% and John Montgomery holding 0.9%. Gemini later provided DIP financing when the company sought bankruptcy protection.

Financial performance. From 2021 to 2023, the company generated average annual revenue of approximately $78 million and average annual EBITDA of approximately $17 million. The company reported assets exceeding $27 million against liabilities of more than $44 million, including the $32.8 million arbitration judgment.

Debtor Entities.

Seven affiliated entities filed jointly under the chapter 11 petitions, with Omni Agent Solutions serving as claims and noticing agent:

The subsidiaries corresponded to the company's geographic operating model, with each entity responsible for operations in its respective territory. The cases were jointly administered.

Operation Lone Star and the GETZ Partnership

Operation Lone Star, the multibillion-dollar Texas border initiative launched by Governor Greg Abbott in 2021, included busing more than 100,000 migrants to cities including New York City, Chicago, Denver, and Washington, D.C. The Texas Legislature allocated more than $11 billion to fund the broader Operation Lone Star mission, with the migrant busing component alone representing hundreds of millions of dollars in state contracts.

Scale of the busing program. Public records obtained through information requests to the Texas Division of Emergency Management showed the scope of the program. From April 2022 through August 2024, the state made more than 750 payments totaling $221,705,637 to transportation companies for migrant busing services. The majority of these payments went to Wynne Transportation LLC. Texas reported sending 119,200 migrants to cities outside the state during this period, with taxpayers footing approximately 99.6% of the total cost.

The GETZ partnership. In 2020, GETZ Transport Solutions and Wynne Transportation agreed to jointly bid on a favored vendor contract with the State of Texas for emergency transportation management services. The parties agreed that if successful, they would split contract profits 55% to Wynne and 45% to GETZ.

Wynne won the bid. The dispute over the profit split later led to arbitration.

MSG subcontractor reporting. The migrant busing operation drew scrutiny over Wynne's choice of subcontractors. Documents obtained by the Southern Poverty Law Center stated that Wynne Transportation paid over $20 million to MSG, described by the SPLC as an antigovernment extremist group, for busing services beginning in April 2022. Reports alleged that migrants were transported in "inhumane" conditions. Wynne ended its relationship with MSG in April 2023 after Texas required cost reductions.

The $32.8 Million Judgment

The dispute between Wynne and GETZ centered on what happened after Wynne won the Texas transportation contract. According to arbitration proceedings, Wynne reneged on its agreement with GETZ after securing the state contract. Rather than honoring the 55/45 profit split, Wynne kept millions earned on the contract for itself and its owners. When negotiations over the profit split failed, Wynne unilaterally terminated the partnership nearly two years before the contract was scheduled to end. GETZ was left with nothing while Wynne retained tens of millions of dollars in profits from the Operation Lone Star work.

Arbitration Award.

GETZ pursued its claims through arbitration, with Houston law firm Burford Perry representing GETZ. On October 15, 2024, Arbitrator Hon. Glen Ashworth ruled in GETZ's favor, finding that Wynne had terminated the contract without cause and awarding damages accordingly. The Final Award totaled:

The arbitrator found both Irving, Texas-based Wynne Transportation, LLC and its parent Wynne Transportation Holdings, LLC jointly and severally liable for the award—meaning GETZ could pursue collection against either or both entities for the full amount.

Final Judgment and Asset Freeze.

On December 12, 2024—one month before the bankruptcy filing—the trial judge in Harris County's 234th Judicial District Court confirmed the arbitration decision and entered a final judgment. The court granted GETZ's turnover relief action with orders that restricted Wynne's access to cash and asset sales:

• Cash turnover: Wynne was required to turn over all cash to Harris County
• Claims turnover: Wynne was required to assign all claims and causes of action to GETZ
• Asset freeze: Wynne was prevented from selling assets outside the ordinary course of business until the award was satisfied

The order required cash turnover and barred asset sales outside the ordinary course, limiting access to cash for operating obligations. Chief Restructuring Officer M. Benjamin Jones later stated in court filings that this single issue "drastically affected" the business.

Compounding pressures. Beyond the $32 million owed to GETZ, the company faced additional litigation costs from the arbitration and related proceedings. Two major contracts that had been scheduled for the latter half of 2024 were postponed to early 2025. The company filed for chapter 11 in January 2025.

Chapter 11 Filing and Conversion

Wynne Transportation Holdings, LLC filed for chapter 11 protection on January 12, 2025, with its six affiliated entities filing jointly administered petitions. The case was assigned to Judge Mary F. Walrath in Delaware. M. Benjamin Jones of Ankura Consulting Group, LLC served as Chief Restructuring Officer, filing the First Day Declaration that laid out the company's circumstances.

DIP Financing.

The debtors sought financing for the bankruptcy process. On January 13, 2025—one day after the petition—the company filed a motion seeking approval of DIP financing from Gemini Investors VI, L.P., the company's 90% majority equity owner.

Judge Walrath approved interim access to $2 million on January 14, 2025. The final DIP order was never entered.

Official Committee of Unsecured Creditors.

Despite the short duration of the chapter 11 case, an Official Committee of Unsecured Creditors was appointed and moved quickly to retain professional advisors:

An Official Committee of Unsecured Creditors was appointed and retained Brown Rudnick, Potter Anderson, and M3 Advisory. GETZ Transport Solutions held the $32.8 million judgment.

Professional Retentions.

The debtors retained restructuring professionals:

CRO background. M. Benjamin Jones, who served as Chief Restructuring Officer, is Global Co-Head of Ankura Turnaround & Restructuring, with experience across healthcare, education, professional services, manufacturing, apparel, food processing, retail, and entertainment sectors. He was inducted into the 34th class of the American College of Bankruptcy in March 2023.

Conversion to Chapter 7.

The chapter 11 case converted to chapter 7 in late February 2025. Key events in the final weeks:

The First Omnibus Rejection Motion was filed on February 12, seeking to reject leases. The status conference on February 20 and the updated DIP budget were followed by the conversion order on February 27.

46 days. From petition on January 12, 2025, to conversion on February 27, 2025, the chapter 11 case lasted 46 days. The case converted after interim DIP financing and professional retentions.

Chapter 7 Administration and Asset Sale

Following the conversion, Alfred T. Giuliano was appointed as Chapter 7 Trustee to administer the liquidating estate. The case was later reassigned to Judge Karen B. Owens, and David M. Klauder subsequently succeeded Giuliano as Chapter 7 Trustee.

Asset sale. On July 24, 2025, the Chapter 7 Trustee entered into a Sale Agreement with My Ride to Work, LLC for the purchase of the debtors' personal property, including vehicles, equipment, and other assets. The company had operated for nearly three decades before conversion to chapter 7.

The sale covered personal property, including the fleet and equipment. The $32.8 million GETZ judgment remained a claim in the case.

Industry Context: The Great Freight Recession

The filing occurred against a backdrop of stress in the broader transportation sector. The Great Freight Recession, which began in 2022, has been described as the longest downturn in trucking history, driven by market oversaturation following the pandemic-era logistics boom.

Industry metrics. By early 2025, the pace of carrier failures was 16% higher than the prior year's already elevated level, with the number of trucking company bankruptcies on track to outpace 2024. In 2023 alone, nearly 88,000 trucking companies shut down operations along with 8,000 freight brokers. Contributing factors have included rising fuel costs, persistent inflation, and the imposition of new 25% tariffs on medium- and heavy-duty trucks effective November 1, 2025.

Wynne Transportation focused on crew change services for the energy sector, and it reported average annual EBITDA of approximately $17 million through 2023. The $32.8 million judgment preceded the chapter 11 filing.

Key Timeline

Case Takeaways

Contract dispute and judgment. Wynne reported average annual revenue of approximately $78 million and average annual EBITDA of approximately $17 million from 2021 to 2023. The dispute over a 55/45 profit split with GETZ resulted in a $32.8 million arbitration judgment, and the company filed for chapter 11 in January 2025.

Turnover order. The Harris County court confirmed the arbitration award and ordered cash turnover, assignment of claims, and restrictions on asset sales outside the ordinary course. The CRO stated the order "drastically affected" the business.

DIP financing. Gemini Investors VI committed $5 million in DIP financing, and the court approved interim access to $2 million. A final DIP order was never entered before conversion.

Contract timing. Two major contracts scheduled for the latter half of 2024 were postponed to early 2025.

Committee and professionals. An Official Committee of Unsecured Creditors was appointed and retained Brown Rudnick, Potter Anderson, and M3 Advisory. The debtors retained Proskauer Rose, Landis Rath & Cobb, Ankura, and Omni Agent Solutions.

Frequently Asked Questions

When did Wynne Transportation file for bankruptcy? Wynne Transportation Holdings, LLC filed for chapter 11 bankruptcy on January 12, 2025, in the U.S. Bankruptcy Court for the District of Delaware. The case was jointly administered with six affiliated debtor entities. The case converted to chapter 7 liquidation on February 27, 2025—46 days after the initial filing.

What caused Wynne Transportation's bankruptcy? The trigger was a $32.8 million arbitration judgment in favor of former partner GETZ Transport Solutions. Wynne had agreed to split profits 55/45 with GETZ on a Texas migrant busing contract but reneged on the agreement after winning the bid. A Harris County court confirmed the arbitration award and ordered Wynne to turn over all cash and refrain from selling assets. The company filed for chapter 11 in January 2025.

What was Wynne Transportation's connection to Operation Lone Star? Wynne Transportation was a primary contractor for Governor Greg Abbott's migrant busing program under Operation Lone Star. The company received the majority of over $221 million in state payments from April 2022 through August 2024, transporting more than 100,000 migrants to sanctuary cities including New York City, Chicago, Denver, and Washington, D.C.

What happened to the partnership with GETZ Transport Solutions? Wynne and GETZ agreed in 2020 to jointly bid on a Texas transportation contract, with a 55/45 profit split if successful. After Wynne won the bid, it reneged on the agreement, kept the profits, and unilaterally terminated the partnership nearly two years early. GETZ pursued arbitration and won a $32.8 million award.

How long did the chapter 11 case last? The case lasted 46 days—from the January 12, 2025 petition to the February 27, 2025 conversion order.

Who provided DIP financing? Gemini Investors VI, L.P., Wynne's 90% majority equity owner, committed $5 million in DIP financing. The court approved interim access to $2 million on January 14, 2025, but the case converted to chapter 7 before a final DIP order could be entered.

Who was the Wynne family? Joan Wynne founded Wynne Transportation in 1995. Her husband, Bedford Wynne Sr., was an original owner and founder of the NFL's Dallas Cowboys. Their son, Bedford Wynne Jr., served as President of Wynne Transportation's Charters and Events division.

What happened to the company's assets? After conversion to chapter 7, Alfred T. Giuliano was appointed as trustee to liquidate the estate. In July 2025, the trustee entered into a sale agreement with My Ride to Work, LLC for the debtors' personal property, including the company's fleet of vehicles and equipment.

How large was Wynne Transportation's fleet? The company operated 315 vehicles (178 owned and 137 leased) with operating facilities in five states: Orange, Texas; Butler, Pennsylvania; Lake Charles, Louisiana; Gillette, Wyoming; and Elko, Nevada. The fleet included motorcoaches, minibuses, and vans serving energy sector clients.

What does this case illustrate about contract disputes in bankruptcy? The case involved a dispute over a 55/45 profit split that led to a $32.8 million judgment and a turnover order. The business generated approximately $78 million in annual revenue and $17 million in average annual EBITDA from 2021 to 2023 and filed for chapter 11 in January 2025.

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