Kal Aviation LLC and affiliated debtors (Kal Freight Inc., Kal Partz Inc., Kal Trailers & Leasing Inc., KVL Tires Inc.), operating as Kal Freight Group, filed for Chapter 11 protection on December 5, 2024 in the U.S. Bankruptcy Court for the Southern District of Texas (Case No. 24-90614) before Judge Christopher M. Lopez. The group operated an integrated trucking and logistics business with 800+ trucks, 2,200+ trailers, and approximately 800 drivers across seven terminals in seven states, along with underperforming satellite businesses in aftermarket parts, trailer dealership, and commercial tires. Kal Freight was founded in 2014 and subsequently overleveraged with approximately $325 million in prepetition debt, including ~$260 million in vehicle financing across 19+ lenders. The debtors obtained $23.5 million in postpetition factoring/DIP financing from Triumph Business Capital and liquidity from TBK cash collateral. Asset sales include operating assets to Noor Transport Leasing ($2.4M), motor vehicles ($660K), trailers ($526.5K), and California real property ($3.25M+). The Chapter 11 Plan of Liquidation establishes a GUC liquidating trust. Projected recoveries for unsecured claims are ~4%, with priority tax claims receiving 100%, secured claims ~41%, and equity 0%.
