Fluid Truck Commences Chapter 11 Proceedings To Facilitate Value-Maximizing Sale

(MENAFN- PR Newswire) Operations Continue as Normal Without Interruption to Serve and Support Customers

DENVER, Oct. 17, 2024 /PRNewswire/ -- Fluid Truck (the "Company"), a leading provider of tech-enabled flexible fleet rental solutions, today announced it has voluntarily filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware. The Company intends to use the bankruptcy process to implement an orderly sale of the business under Section 363 of the Bankruptcy Code to maximize value for all stakeholders while pursuing a strategic transaction aimed at driving future growth.

In connection with this filing, Fluid Truck has been working with its stakeholders to negotiate the terms of an asset purchase agreement ("APA") with Kingbee Vans. The Company will be filing motions shortly for approval to proceed with an auction process under court supervision, after which the Company will seek the court's approval of the sale.

"After evaluating all available options amid significant liquidity constraints, we made the necessary decision to pursue a sale and restructure through a Chapter 11 process," said Scott Avila, Interim CEO and Chief Restructuring Officer of Fluid Truck. Our proposed partnership with Kingbee Vans not only secures the continuity of our operations but also expands our customer offerings with a more comprehensive range of vehicle rental solutions, especially in the fast-growing last-mile logistics space. I'm confident the decisive steps we are taking today will position Fluid Truck for a brighter, stronger future, ensuring the best possible outcome for all our stakeholders."

Since its launch in 2016, Fluid Truck has revolutionized vehicle rental and truck-sharing for businesses of all sizes. From small local florists and moving companies to retail giants and the world's top logistics firms, Fluid Truck has been a vital partner in helping businesses access commercial vehicles without the burdens of ownership, particularly significant in a post-pandemic era as rising costs and demand for speed and for convenience in consumer deliveries continue to reshape the market.

Since the pandemic ended, however, the Company has been challenged by a variety of issues, including delays in insurance claim collections, inflation, and a downturn in the used vehicle market, all of which ultimately constrained liquidity. Pursuing the sale to Kingbee Vans under court supervision will help resolve the Company's debt obligations, streamline operations, and emerge under new ownership with a stronger financial foundation for long-term profitability. The contemplated partnership with Kingbee Vans leverages each company's strengths – Kingbee Vans' focus on upfitted long-term rentals and Fluid Truck's technology and flexible solutions – to provide customers unparalleled options, particularly in last-mile logistics and long-term rentals for small and medium businesses.

The Company has filed several customary motions with the Bankruptcy Court to support the continuation of its daily operations for customers, employees, vendors and other strategic business partners, including members of its Fluid Vehicle Investor Program, throughout this process.

Additional information, including court filings and other materials related to the Chapter 11 case, can be found at .

Fluid Truck is being advised by the law firm of Pachulski Stang Ziehl & Jones LLP, Paladin as Chief Restructuring Officer and Financial Advisor, and SSG Capital Advisors as Investment Banker.

About Fluid Truck

Fluid Truck helps businesses and individuals rent commercial vehicles at the tap of a button. Fluid Truck offers a wide array of trucks, vans, electric vehicles, and more through its mobile app and website 24/7, 365 days a year. Launched in 2016, Fluid Truck is a national company used by businesses of all sizes to flexibly and affordably build their fleet, manage employee scheduling on-the-go, and activate zero-emission last-mile delivery services, free from the hassles of ownership.

Media Contacts

Liz Gonzalez
Paladin for Fluid Truck
[email protected]

Emily Allen
Head of Communications at Fluid Truck
[email protected]

SOURCE Fluid Truck

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