The US freight company Kal Freight has filed for Chapter 11 bankruptcy protection after alleged fraud and unprofitable business strategies led the company into a severe financial crisis. Among the creditors is Daimler Truck Financial Services, which is claiming debts of 139 million US dollars. These are secured by ownership rights to 1,625 trucks and trailers, according to court documents.

Kal Freight's total liabilities amount to at least $325 million according to the bankruptcy filing. In addition to Daimler, TBK Bank and Banc of America Leasing & Capital are among the largest creditors. The latter accuses Kal Freight of double pledging, improper bookkeeping, and pledging fictitious assets as collateral. The allegations are classified as "credible and serious.

Founded in 2014 with only six trucks, Kal Freight grew into a nationwide logistics provider with 800 drivers, more than 800 trucks, and over 2,200 trailers. However, costly efforts to become a vertically integrated company and the acquisition of additional vehicles during the Covid-19 pandemic significantly strained the balance sheet.

The insolvency of the company also sheds light on Daimler Truck Financial Services, which initially appears well-secured through collateralization of its claims. The Daimler Truck share reacted in XETRA trading with a gain of 1.24 percent to 37.50 euros.