NTL Truck Line owners file Chapter 7 bankruptcy liquidation
The Great Freight Recession, which began in 2022 has continued into 2026, despite truckload spot and contract rates rising in April.
The industry downturn has resulted in trucking company closings and bankruptcies, most recently affecting California-based NTL Truck Line Inc.
The increase in spot rates was not caused by an increase in freight demand, but by an increase in diesel fuel costs, according to the latest data from Department of Transportation Freight & Analytics.
The DAT Truckload Volume Index, which tracks loads transported during the month, declined sequentially across van, refrigerated, and flatbed equipment, revealing softer freight activity despite the higher rates, according to Heavy Duty Trucking.
The van truckload volume index declined 3% in April compared to March 2026, refrigerated volume dropped 9% month-over-month, and flatbed volumes dropped 3% from March.
In each case, volume was slightly higher year-over-year: van volume up 2%, refrigerated up 1%, and flatbeds up 3%.
Depressed freight activity continues to impact trucking companies nationwide, leading to business closings and bankruptcy filings.
NTL Truck Line owners file Chapter 7
Defunct trucking company NTL Truck Line Inc.'s owners filed for Chapter 7 bankruptcy liquidation, after losing a default judgment on over $483,000, plus interest, owed on five trailers, which plaintiff BMO Bank N.A. was set to repossess, according to court papers.
The debtor also owed the plaintiff's attorneys fees, totaling $4,620 as of Feb. 28, 2026.
The Manteca, Calif.-based trucking company's owners Kulwant Singh and Sukhwinder Kaur filed their Chapter 7 petition on April 24, 2026, in the U.S. Bankruptcy Court for the Eastern District of California listing over $721,000 in assets and over $8.1 million in liabilities.
NTL Truck Line operated 36 power units with 36 drivers, according to the Federal Motor Carrier Safety Administration SAFER website.
The debtors were not immediately available for comment.
In addition to BMO Bank, NTL Truck Line's largest creditors include Verdant Commercial Capital LLC, owed over $1.6 million; U.S. Small Business Administration, owed over $913,000; Crossroads Equipment Lease & Finance, owed $780,000; Lee Financial Services, owed over $641,000; and Commercial Credit Group, owed $413,000, according to the petition.
BMO Bank files complaint against debtor
BMO filed a complaint against the trucking company owners on Dec. 12, 2025, for failing to make its loan payment on May 1, 2025. The bank accelerated all loan amounts, which at the time totaled over $733,000.
The debt grew to over $775,000 with interest and fees by Sept. 25, 2025, according to the complaint.
Bank sells transportation finance business
BMO Bank has sold its transportation finance and vendor finance businesses to Stonepeak, an alternative investment firm, according to a May 11 company statement.
Impairments in BMO's transportation portfolio had skyrocketed in recent quarters, according to Trucking Dive.
The bank's combined loan and lease portfolio in the U.S. was valued at $10.55 million (C$14.5 million) on March 31, 2026, according to the statement.
TGS Transportation files for bankruptcy
Another California-based trucking company, 40-year-old drayage trucking company T.G.S. Transportation Inc., filed for Chapter 7 liquidation on Feb. 13, 2026, about six months after the company closed its business in July 2025.
T.G.S. Transportation said its decision was difficult and influenced by the challenging market conditions facing the trucking industry.
"It is with profound sadness and a heavy heart that T.G.S. announces the official closure of its operations, effective July 31, 2025. After four decades of dedicated service to the transportation industry, we will be parking our trucks for good," the company said in a LinkedIn message posted by co-owner Peter Schneider.
Related: Popular hard seltzer brewer files receivership, but no bankruptcy
The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
This story was originally published May 22, 2026 at 5:48 PM.