Warren Trucking Firm Files for Bankruptcy After Stellantis Dispute

Ray's Transport Inc., a Macomb County trucking company, has filed for Chapter 11 bankruptcy following a legal battle with Stellantis NV.

Key Facts:

• Filed under Subchapter V for small businesses

• $4.6 million in assets, $1-10 million in liabilities

• Largest creditor: Stellantis, with $1.2 million disputed claim

The Stellantis Saga:

Ray's Transport leased space from Stellantis since 2011. The automaker sued in 2021, claiming:

• Lease expired Sept. 30, 2021

• Property used for "impermissible parking operations"

• Sublease revenue not properly shared

Legal Outcomes:

• Judge ordered Ray's to vacate property immediately

• Stellantis awarded $1.2 million in damages

• Ray Almoosawi, owner, filed personal bankruptcy in February

Company Status:

Ray's Transport continues operations as a route broker. They bid out routes to independent contractors, working on an as-needed basis without long-term contracts.

"Authorizing the debtor's continued use of cash collateral is in the best interests of creditors," the company stated, emphasizing the higher value of an operating business versus liquidation.

Source: Crains Detroit