Bankruptcy Court Confirms Kal Freight Plan of Liquidation

On Thursday, April 10, 2025, the plan of liquidation of Kal Freight was confirmed by the Honorable Christopher M. Lopez, United States Bankruptcy Judge for the Southern District of Texas. The plan went effective on Friday, April 18, 2025.

Pachulski Stang Ziehl & Jones served as counsel to the debtors, a trucking company that filed for chapter 11 bankruptcy protection in December 2024 with $325 million in debt due to mounting debt service obligations and litigation over allegations of malfeasance.

This case presented many challenges, including motions to convert the bankruptcy to a chapter 7 liquidation and objections to the plan from various vehicle lenders. The plan confirmation comes after the approval of a sale of some of Kal Freight’s assets to Noor Transport Leasing LLC, as well as a settlement with several secured lenders to fund the debtor’s wind-down. The plan includes the appointment of a liquidating trustee, who will investigate potential legal claims and distribute proceeds to creditors.

Teddy Kapur, Richard Pachulski, Maxim Litvak, Gregory Demo, Steven Golden, Benjamin Wallen, and Jeffrey Dulberg were the members of the PSZJ team that contributed to this successful outcome.

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