Faced with seven pending lawsuits and over 100 creditors, California truss manufacturer Tri-K Truss Company declared Chapter 7 bankruptcy on January 8, 2021, according to the US Bankruptcy Court or the Central District of California.
Tri-K Truss Company, headquartered in Palm Desert, California, currently owes $1.1 million to 113 creditors — all of which are unsecured claims.
At the time of their bankruptcy filing, Tri-K Truss Company reported the following:
- $1,164,715 in total liabilities
- $467,100 in total assets
- $0 in total checking
- $0 in accounts receivable
Between 2018 and 2019, Tri-K Truss Company experienced a 5% increase in gross revenue, according to the bankruptcy petition. In 2018, the manufacturer reported $972,169 in gross revenue, followed by $1,019,580 in 2020.
However, Tri-K Truss Company did not list a 2020 gross revenue figure in the bankruptcy petition.
A debtor that files for Chapter 7 bankruptcy must undergo the liquidation of their assets. This process is used to distribute funds to creditors. Liquidation only involves the sale of the debtor’s nonexempt property. Any secured claims are typically first to be paid out under a Chapter 7 filing, followed by priority unsecured claims and then nonpriority unsecured claims.
Tri-K Truss Company lists no secured claims, 109 nonpriority unsecured claims, and four priority unsecured claims.
32 construction-industry creditors, including contractors, material suppliers, and equipment lessors, are named as creditors in the bankruptcy filing with nonpriority unsecured claims.
Denver-based wholesaler Greenleaf Trading has the largest claim valued at $116,042, and the company is also involved in a pending lawsuit with Tri-K Truss Company for breach of contract.
The remaining construction-related creditors include:
- 84 Lumber Company – $67,493
- Baldwin Industrial Supply – $17,849
- Concannon Lumber Company – $15,226
- Frog Environmental – $524
- Grainger – $1,650
- Gregory Construction – $0
- High Sierra Lumber & Supply – $18,351
- Ideal Saw Works – $814
- Jack Griggs (utility) – $882
- JR Nelson Roofing – $3,506
- Lumber One Services – $48,092
- MiTek USA – $36,232
- North Fork Lumber Co. – $0
- Pacific Construction & Framing – $324
- Pacific Truss & Supply – $17,220
- Pelican Bay Forest Products – $85,663
- Precision Brake & Wheel – $28
- Res Com Pest Control – $110
- Smee Builders – $0
- Southern California Edison – $535 // $2,740 // $167
- Southern California Gas Company – $251 // $34
- State Water Resources Control Board – $1,400
- T J Forest – $69,047
- TelePacific Communications – $1,399
- Timber Products – $300
- Toyota Material Handling – $4,371
- Trinity River Lumber Co. – $0
- Tulare County Solid Waste Dept. – $439
- Turnupseed Electric Service – $780
- W.W. Grainger – $1,937
- Weisenberger’s ACE Hardware – $206
Of the four priority claims listed in the bankruptcy petition, the State of California Franchise Tax Board is the only creditor named with a claim amount, totaling $924 for state taxes. The remaining three priority unsecured creditors include the IRS, the Employment Development Department, and the California Department of Tax and Fee Administration.
Tri-K Truss Company is the defendant in seven pending lawsuits
According to the bankruptcy petition, Tri-K Truss Company is the defendant in seven pending (and one resolved) lawsuits concerning construction-related disputes.
The nature of five of the pending lawsuits are listed as breach of contract with subcontractors and material suppliers, which include:
- 84 Lumber Company
- High Sierra Lumber & Supply
- Barrett Business Services
- Greenleaf Trading
- Pelican Bay Forest Products
A sixth breach of contract lawsuit — which is now concluded — is also named in the bankruptcy filing. The concluded case was filed by a client of Tri-K Truss Company. According to The Superior Court of California County of Tulare, the plaintiff part was awarded a $10,000 judgment verdict on September 10, 2020.
Two other pending lawsuits involving Tri-K Truss Company are also being heard in Tulare County superior court, as two clients have raised claims concerning a small claims suit and a “construction defect.”