An Ohio-based transportation company and three of its freight forwarding companies have filed for Chapter 11 bankruptcy protection despite obtaining loans through the U.S. Small Business Administration’s Paycheck Protection Program (PPP) to help them stay afloat during the COVID-19 pandemic.

5AAB Holding LLC of Columbus, Ohio, along with its affiliates 5AAB Transport, Heavy Diesel Service and SJS Transport, filed their petition in the US bankruptcy court for the Southern District of Ohio on Monday.

In its filing, 5AAB Holding lists its assets between $ 100,000 and $ 500,000 and its liabilities between $ 1 million and $ 10 million. It claims to have up to 49 creditors.

5AAB Holding claims that there will be no more funds available to unsecured creditors after the administration fees have been paid. However, the company’s three subsidiaries say funds will be available to unsecured creditors after the reorganization, according to the court records.

5The main unsecured creditors of AAB Holding

The transportation company’s major unsecured creditors include its Sioux Falls, South Dakota, Sioux Falls, South Dakota factoring company, CarrierNet Group Financial, which owed nearly $ 208,000; First Financial Bank of Cincinnati, debt of $ 179,000; and De Lage Landen of Wayne, Pa., owed nearly $ 25,000 in vehicle loans.

Court records show that two of 5AAB Holding’s subsidiaries, 5AAB Transport and Heavy Diesel Service, received a total of $ 59,000 in PPP funding. The petitions list the SBA lender as the CFBank of Columbus.

5AAB Transport, which carries general cargo and mail for the U.S. Postal Service, has 15 engines and 14 drivers, according to the Federal Motor Carrier Safety Administration’s SAFER website. SJS Transport has two power supplies and a driver, according to the FMCSA website.

The bankruptcy filing lists Navdeep Sidhu and Hardeep Singh as shareholders of 5AAB Holding and the three companies. Sidhu and Singh did not respond to FreightWaves’ request for comment.

Do you have a tip? Contact Clarissa Hawes at chawes@freightwaves.com.

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