Lenders Slam Kal Freight’s Liquidation Plan as Unfeasible

A group of lenders is challenging bankrupt truck company Kal Freight Inc.'s liquidation plan, labeling it “questionable” given related allegations of defrauding creditors.

The lenders—Mitsubishi HC Capital Canada Inc., Truist Equipment Finance Corp., and Fifth Third Bank—opposed Kal Freight’s proposed disclosure statement and bankruptcy plan in an objection filed Tuesday in the US Bankruptcy Court for the Southern District of Texas. They said the documents lack details on the two proposed paths, which include selling the business or winding it down and establishing a liquidating trust.

The statement references a “quick sale” of the business, which is “notably unsupported ...