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Colona trucking business files for bankruptcy

The trucking firm Omni Specialized, based in Colona, filed for Chapter 11 bankruptcy in federal court in Rock Island on May 29.

Employees reportedly were not paid on Friday, June 2, and no one answered the phone at the business on June 9.

The city had not been notified, according to Kathleen Palmer, Colona city hall office manager. She said city hall records show that as of May 2016, the company had 40 staffers and 115 drivers.

Omni is being represented in the bankruptcy case by Hellmuth & Johnson, of Edina, Minn. Sabrina Petesch, of Peoria, is the government attorney, while Goldstein & McClintock, of Chicago, are representing unsecured creditors. A meeting with creditors is set for June 27, and people have until Sept. 25 to file claims.

Omni Specialized was in full operation in July 2016 after buying Tennant Truck Lines, according to a news release from the firm at that time. According to its website, the company had trucking terminals in Baltimore, Md., and Wichita, Kan., and was "one of the largest over-dimensional and general commodity carriers serving all 48 states." The president was Thomas Witt.

Lynn Sutton, chairman of the Henry County Economic Development Partnership board, said Friday the fact that a local firm could be in such financial trouble without anyone realizing it is evidence of the need for a full-time economic development director for the county. Henry County has not decided whether to go with a part-time or a full-time economic development director.

"The person would make contact with our local companies and stop the bleeding — do everything we can to help them grow and expand," Mr. Sutton said. "Seeing job loss in Henry County is obviously detrimental, and depending on the number of jobs, the more detrimental it is. There are companies doing business in Henry County that we don't know how healthy they are."

In May, Omni was named as the defendant in two civil suits filed in Henry County Circuit Court for lack of payment to former owner Tennant Logistics and P2 Leasing. The suits seek nearly $2 million as the outstanding balance under promissory notes dated April 29, 2016.

Source of article click here : qconline

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