Yonkers Bus Files Chapter 11 Bankruptcy

by San Antonio Attorney

Allways East Transportation, based in Yonkers, recently filed for Chapter 11 bankruptcy protection.  Allways East Transportation renders its service to the Yonkers Public Schools.

The company’s headquarter is in 870 Nepperhan Avenue in Yonkers.  Based on the creditors list as of May 6, Allways allegedly has a total debt of $3.7 million to 20 creditors.  The largest debt is owed to the State Department of Taxation and Finance, with a total amount of $823,670.21.

Other debts include unpaid tolls and violations totaling $390,662 owed to the New York State Thruway Authority.  Another debt that costs $353,000 to the Triboro Bridge and Tunnel Authority also played a part in the hefty debt of the company.

AmTrust North America, the second major creditor of Allways East, is owed by Allways a total of $600,891.45 on hefty insurance premiums.

Other miscellaneous debt includes unpaid taxes to the Internal Revenue Service and another debt to the Department of Labor due to the unemployment payments.  Allways East filed for Chapter 11 bankruptcy protection last April 28.

The Yonkers Public School is tied up by two contracts with Allways East Transportation.  A resolution has been passed by the school’s official website, which honors the contracts to Allways but will not provide details on how much the contracts actually cost.

The Yonkers Public Schools are obliged to pay $32 million as stipulated by their contact in the school year 2015-2016.

Allways employs 200 drivers and bus monitors to operate the transportation of Yonkers’ location.

The term Chapter 11 bankruptcy comes from the U.S.  Bankruptcy Code 11.  This form of bankruptcy involves a restructuring of a debtor’s affairs and assets.  A Debt Relief Attorney can explain how this form of bankruptcy works for individuals and businesses.

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