Paladin Capital files for Chapter 11 as trucking portfolio unravels

Core Insights - Paladin Capital Inc., a Tennessee-based private equity firm, has filed for Chapter 11 bankruptcy protection, affecting hundreds of employees in the trucking and logistics sectors [1][6] - The firm reported assets between $10 million and $50 million and liabilities ranging from $100 million to $500 million [1] - The bankruptcy filing is part of a trend among private equity-backed trucking companies facing challenges due to a prolonged freight market downturn [6] Company Overview - Paladin Capital is headquartered in Brentwood, Tennessee, and operates as the parent company of over 20 subsidiaries, including Robert Bearden Inc. and the Quickway family of companies [2] - Both Robert Bearden Inc. and Quickway have filed separate Chapter 11 petitions recently due to operational issues, including driver layoffs and equipment returns [2] Reasons for Bankruptcy - The company cited prolonged weakness in the freight market, rising insurance and equipment costs, and liquidity pressures from lending arrangements as key factors leading to bankruptcy [3] - Paladin Capital defaulted on a credit facility with Truist Bank after insurers drew on letters of credit related to accident claims, which drained cash necessary for servicing equipment leases [3] - The firm has been unable to make payments to major equipment lenders since mid-2025 [3] Financial Impact - Robert Bearden Inc. was identified as a significant cash drain within Paladin's portfolio prior to the bankruptcy filing [4] - The company attempted to negotiate with lenders but ultimately chose bankruptcy protection to avoid widespread equipment repossessions and to preserve remaining operations [4] Employment and Future Plans - At the time of the filing, Paladin Capital employed approximately 912 workers, including over 150 at Robert Bearden Inc. and nearly 500 at Quickway entities [5] - The company plans to pursue Section 363 sales of individual business units rather than a single sale of the entire platform [5]