A freight trucking provider in Clarendon Hills, Illinois, has filed for bankruptcy after operating for more than 11 years. The filing appears aimed at restructuring its finances, as the case documents indicate a steady decline in gross revenue.
Direct Motor Lines, Inc., which meets shipping needs across the region, currently faces unsecured claims from Finloc, Transportation Alliance Bank, and several other financial institutions.
Direct Motor Lines, Inc. Enters Bankruptcy
According to a petition filed on May 19, 2026, the company is pursuing a Chapter 11 financial reorganization. As the authorized representative, the company president, Svetlana Randle, signed the petition before filing.
The proceedings are taking place in the U.S. Bankruptcy Court for the Northern District of Illinois. Attorney David Freydin of the Law Offices of David Freydin Ltd is the company’s legal counsel.
Case Related Details
Court filings available through PACER show the company has faced declining gross revenue over the past two years.
According to the statement of financial affairs, while the value was more than $40 million in 2024, it decreased to $5 million in 2025, thereby reflecting a major financial distress. This year, up to the date of the filing, the gross revenue of Direct Motor Lines, Inc. was listed as $800,000.
The company also submitted a list of creditors with the largest unsecured claims. Among these, Transportation Alliance Bank held the largest claim, exceeding $1 million.
Some of the other creditors included Finloc, Atlantic Union Equipment Finance, and M&K Financial.
Court filings indicate that funds will be available for distribution to the unsecured creditors.
Other document filings, as given in the Chapter 11 petition, included a summary of assets and liabilities, a list of equity security holders, and a corporate ownership statement.
A summary of the petition includes the following details:
- Filing Date: May 19, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the Northern District of Illinois
- Type of Filing: Active, Voluntary Petition
- Chapter: 11
- Case Number: 26-08611
- Estimated Assets: Between $1,000,001 and $10 million
- Estimated Liabilities: Between $1,000,001 and $10 million
- Estimated Creditors: Between 1 and 49
- Reason for Filing: Restructure business under court supervision
About the Company
As a freight transportation company, Direct Motor Lines, Inc. has been in operation since 2015. The company’s website states it provides specialized flatbed and reefer trucking services across the country. These services are designed to transport oversized industrial freight and temperature-sensitive items, such as pharmaceuticals and perishable foods.
The filing highlights ongoing financial pressure across the U.S. trucking industry. New developments in the case of the Clarendon Hills, Illinois-based company are expected from upcoming court rulings.
