Trucking, logistics corporations rocked by bottled water producer’s bankruptcy

Many trucking and logistics companies are collectively owed hundreds of countless numbers of pounds right after a Nevada-primarily based bottled water firm — now beneath federal investigation about allegations that its h2o resulted in a nationwide hepatitis outbreak — went out of small business.

AffinityLifestyles.com and its affiliate marketers, Genuine H2o Inc. and Genuine H2o of Tennessee, filed for Chapter 7 individual bankruptcy on Aug. 20. The shift will come two months after a federal court ordered the organizations to quit developing or distributing bottled drinking water and drinking water focus underneath the model names Re2al Drinking water Ingesting H2o and Re2al Alkalized Drinking water at its Mesa, Arizona, and Henderson services.

Image: Courtesy of Fda

Among the companies’ top 20 unsecured credits are a number of trucking and logistics firms, which include Chicago-centered Echo Worldwide Logistics, owed virtually $38,000, GlobalTranz of Phoenix, Arizona, owed much more than $31,300 and XPO Logistics in Las Vegas, owed close to $22,000. 

In May possibly, the Section of Justice filed fit against True H2o and executives, Brent A. Jones, a previous Nevada lawmaker, and his son, Blain K. Jones, alleging a sequence of sanitation and labeling failures led to an outbreak of liver ailments tied to the products.

Fda investigators assert Authentic H2o personnel had not “properly cleaned and sanitized the h2o tanks in which they blend processed municipal tap h2o with E2 Focus, most likely leading to chemical and microbial contamination” at its two services, in accordance to the lawsuit submitted by the DOJ. 

True H2o settled the suit with federal authorities in June. 

“While the businesses promoted their products as a balanced choice to faucet drinking water, the governing administration alleged that the goods, in truth, consisted of municipal tap water that the defendants processed with different chemical substances in violation of present good producing practices, pertinent food items safety requirements and hazard avoidance actions,” according to court paperwork.

Photo: Courtesy of Food and drug administration

The DOJ filed the complaint soon after the Fda received reviews that at least 16 adults and kids experienced acute non-viral hepatitis following consuming Re2al Water. Court documents point out that five kids seasoned acute liver failure after drinking the products.

At the very least 21 lawsuits have been submitted towards True Water and its executives considering that the corporation issued a voluntary recall of all of its merchandise in March. The Fda discovered that regardless of its merchandise becoming connected to a nationwide hepatitis outbreak, Actual Water solutions ended up even now being marketed on line.

No resources for unsecured collectors

Taking care of entity AffinityLifestyles.com lists assets for its organization as amongst $1 million and $10 million, liabilities as in between $500,000 and $1 million and states that it has up to 99 lenders, in accordance to its individual bankruptcy petition filed in the U.S. Individual bankruptcy Court docket for the District of Nevada. 

Actual Waters lists both its assets and liabilities as between $1 million and $10 million and has up to 199 lenders, in accordance to court docket filings. Real H2o of Tennessee states its belongings are among $100,000 to $500,000 and its liabilities are amongst $500,000 to $1 million. It has up to 49 lenders.

Brent A. Jones, president and founder of the Re2al H2o models, mentioned in his petition that immediately after administrative fees are compensated, no cash will be offered for unsecured collectors.

Matthew C. Zirzow, individual bankruptcy lawyer for Actual Drinking water and its affiliates, did not respond to FreightWaves’ ask for seeking remark. 

A creditors’ conference for AffinityLifestyles.com and its affiliates is scheduled for Sept. 20 in Las Vegas. 

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Click for additional content by Clarissa Hawes.

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