Longbow Freight Systems

Update

TRAVELLER said:
Did Everyone That They Owe Money To Recieve Paperwork From Their Lawyers?
I Spoke To Jeff A Month Ago And He Said We Should Get It In A Few Days.
Still Have Not Received Anything.
Left 2 Messages On Jeff's Voicemail.
Someone Is Still Answering Phone There As Of Yesterday.
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Despite what was posted by Blondie, Longbow as of March 27, was not bankrupt - they have filed notice to make a proposal to the creditors under the BIA Act. If you believe you are a creditor and have not received notice, contact the Trustee - Harvey Lipman at Perry Kreiger 905-508-0080
Estate #31-1172312
First Meeting of Creditors April 20 at 1pm
 
Payment Proposal

Just recieved the payment proposal, it plans to pay 100% to those owed $1000 dollars or less imediately and then a .34 cents on the dollar( possibly over time ) to the creditors over $1000.00.
My question is if someone is owed $1200 dollars can they send in proof of claim for $999.00 and get paid 100% of the $999.00 rather than send in proof of claim for $1200.00 and maybe receive .34 cents on the dollar ( or $408.00 )
Anyone have any thoughts on this.
 
How Generous

Not to say I told you so, but would anybody who said what a great guy Marvin was for coming on this site and trying to explain himself like to comment now. Or maybe all the carriers who have been offered such a generous offer would like to comment. This guy is a snake and should lose everything he has. Good Riddance.
 
We got those papers, the reason they are offering to pay 100% of anything under a $1000 is because that would take care of 99 of the 250 companies owed money. They know that will get them enough votes for this agreement to go through at a cost of well under $100,000 (about $60,000) so they can agree to pay out over time the rest of us suckers. They owe over 1 MILLION dollars and will walk away with paying out under $400,000 of it. How anyone can defend these guys is way beyond me we are paying for their houses, vacation homes, vacations and they will stay in business and probably have not missed one paycheck. It is really frustrating being one of the good guys who pays their bills within 30 days and struggling to survive and the crooks just keep living off of the honest companies. At what point is enough is enough.
 
I agree with you 100% lowmiler. As for enough is enough I am not sure what it will take. Perhaps if enough good carriers in the GTA close up our industry will not require the over abundance of non-asset based companies thriving on us. Maybe at that point we will receive fair value for the job we do and not just rates we received 20 years ago.
 
April 20, 2009???????

Did anyone attend the meeting April 20 - if so, what was the result????
 
Longbow

I Did Not Attend, However I Did Call The Lawyer To See What Happened. The Assistant (not Sure Who She Was)told Me That It Passed So That Means They Received The Appropriate # Of Votes. She Said She Could Not Give Me Anymore Details Then That. Basically What It States In The Paperwork We Received Before Is What Is Going To Happen And We Will All Be Getting More Information Over The Next Few Weeks.
 
I'm not surprised it passed and in a couple of years they will be operating as they always did...........then when the economy turns again (wihich it will)........they will go "hey remember that stunt we pulled in 09, let's do that again look how well it worked sure we screwed a lot of carriers out of $500,000 but hey we survived". The scary part is who else is thinking the same thing now that this scam worked.
 
If anyone thinks they are still good guys and follow this site on a regular basis Longbow owes a certain company hitting the rumour mill yesterday$72,000 which could be one of the reasons they are now having problems.
 
Longbow

So this new letter received by perry kreiger basically reads that longbow is not going to be able to honour is original proposal?
Is this what everyone else got from it. Does anyone have any light to shed on this? It looks like they are still alllowed operate on a cod basis (although they already are using a 3rd party to move their freight - name not mentioned)
 
TRAVELLER said:
So this new letter received by perry kreiger basically reads that longbow is not going to be able to honour is original proposal?
Is this what everyone else got from it. Does anyone have any light to shed on this? It looks like they are still alllowed operate on a cod basis (although they already are using a 3rd party to move their freight - name not mentioned)
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Longbow has withdrawn their "NOI" filing, which means their status reverts back to what it was prior to the filing. Creditors are now free to pursue whatever options they so choose in an attempt to collect money owing.
 
Another scum bag! still owes me $900.00 and i'm guessing i'll never see it
Hope their parents are proud!!
 
SCAM CHASER said:
Longbow has withdrawn their "NOI" filing, which means their status reverts back to what it was prior to the filing. Creditors are now free to pursue whatever options they so choose in an attempt to collect money owing.
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I need to correct this posting now that I have actually received and read the notice from the trustee. Yes - Longbow is officially bankrupt. If you are owed money, try and determine if the shipper paid Longbow prior to May 5, 2009.

If shipper paid prior to May 5, you can sue the directors of Longbow and also name the shipper/consignee.

If shipper has not paid by May 5, 2009, contact the trustee and tell him that you will be seeking compensation pursuant to the HTA and how does he want you to proceed. Do not complete the trustee claim form unless you note that you are claiming pursuant to the HTA. You cannot sue the directors of Longbow if the shipper had not paid them prior to the bankruptcy.

You can no longer show Longbow in any formal court proceeding as any action would be stayed pursuant ot the BIA.
 
Recieved a letter from Longbow's trustee today saying they didn't have a trust account when going into insolvency. They then tried to set one up and didn't manage to do it correctly so monies received after the date of bankruptcy are still not going to the carriers who moved the freight but to secured creditors. I contacted the person handling and asked if there are any legal repercussions to Longbow for not having a trust account and the answer is 'according to other brokers a trust account is impossible to maintain due to costs relative to margin '. What is the point in having a law for brokers to maintain a trust if there are no consequenses to not having one.
 
Legal Repercussions

There definately are legal repercussions for the the owners and directors not setting up a trust account. First, I can tell you that it's next to impossible to set up a trust account according to the law. You couldn't run a business that way. In addition, what do you tell a carrier who calls looking for money.. sorry it's not in the trust account, customer has paid yet. They would tear your head off for that. Most brokers manage their cash flow like any other business.

The risk involved is that the owners and directors become personally liable for what should be in the trust account. I don't know if the owner's personal assest have been ceased yet or not, but their personal property can be liened to pay the trust liability.
 
I have absolutely no idea what was meant by "impossible to maintain due to costs relative to margin". There is no "cost" with maintaining a trust account - the fees to maintain it are the same as any other chequing account. We have operated a trust account for years, ever since the legislation was enacted. I know there are some reputable brokers who don't use a trust account for reasons of their own. Perhaps another question for carriers to ask when dealing with a new broker, is "do you have a trust account"? If they don't, ask them how they segregate the funds owing the carrier from their general operating revenue. If this question is too complex for them, or they just can't answer, move on.
 
The trust liability is $10,000.00 they burned people for millions so what is the sense of having a trust account? Make that trust account $1,000,000.00 then it means something because then the insurance company would really be involved.
 
They do not owe us a large amount of money but I think this is a matter of principle. Many carriers are not getting paid by brokers already and it's not going to get better because of brokers that are not set up correctly.
I am also a broker who holds a trust account. My question is who enforces the trust account rules if a company goes bankrupt and didn't have one?
 
Lowmiler88, I think you are confusing the old load brokers bond, which was $10K, with the trust account. The trust account is for ALL monies owed to carriers, no limit. The OTA likes it, because they feel it protects carriers in the event of a broker going bankrupt.
 
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