Filing Alert: Paladin Capital Chapter 11

Paladin Capital, Inc., a Brentwood, TN-based employee-owned holding company for a network of transportation and logistics businesses, filed for Chapter 11 pr...

Paladin Capital, Inc. and its debtor affiliates⁽¹⁾, a Brentwood, TN-based employee-owned holding company for a network of transportation and logistics businesses, filed for Chapter 11 protection on Jan. 26 in the U.S. Bankruptcy Court for the Middle District of Tennessee.

The debtors' financial distress was driven by the "Great Freight Recession," rising operational costs, and liquidity drains from insurance claim reimbursements that exhausted their credit line. Facing a default notice from senior lender Truist and a demand from Bank of Montreal to return critical equipment by Jan. 26 after rejecting a forbearance proposal, the company filed for Chapter 11 to prevent repossessions and preserve operations.

The filing aims to facilitate the sale of the company's various business units (including Quickway, Robert Bearden Inc., and Magnum Solutions) as going concerns to strategic buyers under Section 363.

The company reports $34.7 million in assets and $110.5 million in liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 26-00316.

⁽¹⁾ For a complete list of debtor entities, see the Chapter 11 Debtors table.

Chapter 11 Debtors

Affiliated Debtors Chart
Source: Bondoro, Court filings

Top Unsecured Claims

Form 204 Top Unsecured Claims
Source: Bondoro, Court filings

Key Parties

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