WASHINGTON - Cloverleaf Transportation Inc., a privately held regional trucking company, Tuesday filed for Chapter 11 bankruptcy protection from its creditors.
The Chester, N.Y.-based company, which serves the Northeast, has assets of about $1.4 million and debts of about $7.3 million, according to papers filed in U.S. Bankruptcy Court in Poughkeepsie, N.Y.
Cloverleaf, which employs 100 people, expects to stay in business and to break even over the next 30 days, the papers said.
The Chapter 11 filing was brought on when its largest customer, Target Corp., terminated its contract with the company, the papers said.
The filing frees the company from the threat of creditors' lawsuits while it reorganizes its finances.
Cloverleaf owes senior lender LHSE Partners LLC about $3.6 million, the papers said. The company, which is owned by Exeter Equity Partners LP, owes unsecured creditors about $1.8 million, the papers said. Atlantic Mutual, with a $400,000 claim, is the company's largest unsecured creditor.
