Lawsuit alleges R&R Family of Companies continued operating while insolvent

Core Viewpoint - The R&R Family of Companies faced severe financial distress leading to its collapse, with lenders urging a wind-down of operations due to insolvency and unpaid invoices, despite ongoing freight operations [1][2][5]. Financial Condition - R&R and its affiliates were reported to be insolvent and deeply in default, with a significant lack of liquidity while continuing operations into late 2025 [1][3]. - By 2025, R&R's financial condition deteriorated sharply, reporting approximately $25.9 million in net operating losses, with actual losses potentially higher due to accounting practices [4]. - The company accumulated around $65 million in unpaid trade payables by late 2025, indicating a critical liquidity crisis [4]. Lender Actions - Huntington National Bank and S&T Bank extended multiple credit facilities to R&R in March 2022, including an $85 million revolving credit line and a $3.7 million term loan [3]. - By mid-December 2025, Huntington recommended an orderly wind-down due to insufficient liquidity, but R&R continued operations despite accumulating unpayable debts [5]. Turnaround Efforts - In November 2025, R&R hired G2 Capital Advisors to develop a restructuring plan, which estimated a need for at least $25 million in new capital to survive [6]. - The proposed plan was deemed unviable by lenders after review, leading to further financial deterioration [6]. Allegations of Fraud - The lawsuit includes allegations of a fraudulent property transfer involving a Florida property owned by R&R Express Properties LLC, raising concerns about insider actions during insolvency [8].