Huntington sues 24 R&R companies over more than $12M in debt

Nearly eight months after the collapse of R&R Family of Companies, trucking and freight-related companies continue contacting FreightWaves about unpaid invoices and seeking answers about whether they will ever recover money owed by the logistics group and its affiliates.

A federal lawsuit filed by Huntington National Bank provides one of the clearest pictures yet of the web of companies tied to R&R and the debt remaining after the Pittsburgh-based logistics operation unraveled. Huntington sued 24 R&R-related companies June 8 in U. S.

District Court for the Western District of Pennsylvania, alleging they owe more than $12 million under a shared lending arrangement.

The defendants include R&R Express, R&R Express Holdco, R&R Express Logistics, RFX, Refrigerated Food Express, GT Worldwide Transport, GT Worldwide Logistics, Load to Ride Transportation, RFX Tampa and New Taylor Transportation, among others.

Huntington alleges the defendants are jointly and severally liable for the outstanding obligations, meaning the bank contends it can seek repayment of the debt from any or all of the companies covered by the loan agreements.

The lawsuit is the latest legal action stemming from the financial collapse of R&R, whose operations began shutting down in January, leaving employees without jobs and carriers and other creditors pursuing unpaid bills.

Huntington says more than $12M remains outstanding According to the complaint, Huntington and S&T Bank entered into a Second Amended and Restated Credit and Security Agreement with R&R companies and other borrowers on March 18, 2022. The agreement included a revolving loan commitment of up to $85 million, along with a $3. 675 million term loan.

Court documents show a Huntington revolving note was later amended to approximately $65. 9 million, while a separate revolving note involving S&T Bank totaled approximately $19. 1 million. The borrowers pledged substantially all of their assets as collateral for the operating loans, according to the complaint.

Huntington alleges the 24 defendants are jointly and severally responsible for obligations under the credit agreement and describes them collectively as part of a broader group of freight forwarding, trucking and logistics companies known as “R&R Express Co.”

As of June 8, the outstanding balance of the operating loans exceeded $12 million, excluding legal fees, costs, default interest and other charges, according to Huntington. The bank is seeking a money judgment for the outstanding balance, along with post-judgment interest, attorneys’ fees and costs. The allegations have not been adjudicated.

Related: R&R Family of Cos. faces uncertainty amid exec departure, payment concerns At its peak, R&R Family of Companies employed more than 500 workers across Pennsylvania, Texas, Colorado, North Carolina and Tennessee. (Photo:R&R Family of Cos.)

Lawsuit maps R&R’s sprawling corporate structure The complaint also provides a detailed look at how many of the companies were connected through R&R Express Holdco and RFX. Among the relationships identified by Huntington: CompanyRelationship alleged in Huntington complaintR&R Express Inc. Core R&R operating companyR&R Express Holdco Inc.

Parent/holding company for numerous affiliatesR&R Express Logistics Inc. Solely owned by R&R Express HoldcoR&R Express Properties LLCSolely owned by R&R Express HoldcoR&R Driver Solutions Inc. Solely owned by R&R Express HoldcoR&R Equipment Leasing LLCSolely owned by R&R Express HoldcoGT Worldwide Transport Inc.

Solely owned by R&R Express HoldcoBorder Connect Freight Services Inc. Solely owned by R&R Express HoldcoParadigm Transportation LLC80% owned by R&R Express HoldcoFinal Mile Dedicated Group LLC80% owned by R&R Express HoldcoGT Worldwide Logistics LLC90% owned by R&R Express HoldcoBorder Connect Logistics Inc.

Solely owned by R&R Express HoldcoParadigm Transportation Management Group LLC80% owned by R&R Express HoldcoFinal Mile Solutions Group LLC80% owned by R&R Express HoldcoRxG&A LLCSolely owned by R&R Express HoldcoTLogistics LLCSolely owned by R&R Express HoldcoA. M.

Transportation Services LLC60% owned by R&R Express HoldcoRFX LLCMembership includes R&R Express Holdco and RFX Inc.

Refrigerated Food Express LLCSolely owned by R&R Express HoldcoPioneer Transfer LLCSolely owned by RFXLoad to Ride Transportation LLCSolely owned by R&R Express HoldcoOne Stop Freightways LLCSolely owned by R&R Express HoldcoRFX Tampa LLCSolely owned by RFXNew Taylor Transportation LLCSolely owned by RFX The ownership structure is particularly significant because several of those companies operated under distinct names and in different segments of the freight market while remaining connected through R&R’s holding-company structure.

New Taylor Transportation is tied to Taylor Express, the North Carolina trucking operation whose employees were abruptly laid off in January. Load to Ride was another trucking operation acquired by R&R before the company’s financial problems intensified.