O'Neal files Ch. 11 for O&S Trucking

O&S Trucking Inc. President Jim O'Neal on May 30 filed Chapter 11 bankruptcy reorganization for the company he co-founded in 1981.

Court documents show the company has estimated assets of $50,000 or less against estimated liabilities of $10 million to $50 million.

An emergency motion included in court filings shows a partnership agreement that, if approved, would align O&S with top Springfield competitor Prime Inc.  

The pending affiliation would allow O&S to keep 80 percent of revenue it generates by transporting freight; use Prime's buying power for fuel; and garner additional freight business from Prime's customer base. Prime would handle the administrative, accounting and marketing functions of O'Neal's company.

"Debtor submits that the business relationship and affiliation with Prime is a crucial, indeed indispensable, program for the maintenance and promotion of debtor's business and the enhancement of its prospects for a successful reorganization," the emergency motion reads.

Additionally, the negotiation calls for O'Neal to receive 3 percent commission for revenue generated by O&S for hauling freight in the first year, 2 percent in the second year and 1 percent in the third year.

The former mayor of Springfield, who could not be reached for comment this morning, resigned May 7, citing business and personal reasons. In the May 28 Springfield Business Journal story "O'Neal regroups at O&S," O'Neal said the company generated $40 million in 2011 revenues, roughly $20 million less than it did in 2008, the year before he was elected as mayor.

The bankruptcy petition states the O&S Trucking Board of Directors - comprising Jim and Deborah O'Neal and Gary Brown - voted May 17 to file the bankruptcy reorganization. Though Brown signed off on the document, he abstained from the vote.

The filing estimates O&S Trucking's number of creditors at 200 to 299, including unsecured claims by:

• Kansas City-based Springfield Freightliner Sales, $220,000 for a maintenance contract;
• Chicago-based Bridgestone/Firestone, $211,211 in trade debt;
• Kansas City-based Dollar Burns & Becker LC, $200,000 for a wrongful death settlement; and
• Brentwood, Tenn.-based Comdata Corp., $196,302 for a Mastercard fuel purchase contract.

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