Leasing co. says Gainey owes $375k

GRAND RAPIDS, Mich. (WOOD) - A truck trailer leasing company claims West Michigan trucking giant Gainey Corporation owes $375,000 in unpaid lease costs incurred since Gainey filed for bankruptcy protection last year.

XTRA Lease LLC filed a petition in U.S. Bankruptcy Court Wednesday stating the company had only paid $25,000 of $400,000 in lease charges. The filing claims Gainey has "generally ignored XTRA's repeated requests for payment and have effectively compelled XTRA to provide nearly free trailers."

Gainey filed for bankruptcy in October 2008 after a group of lenders led by Wachovia Bank sued the corporation, saying they were owed $230 million. As part of the "right-sizing" Gainey has undertaken since its bankruptcy filing, Judge James Gregg authorized the corporation to reject some truck leases, including some from XTRA. XTRA claims Gainey subsidiaries are still using of its 120 trailers, "generating significant income for them."

XTRA is asking federal bankruptcy Judge James Gregg to force Gainey to either make payment, "assume or reject the leases," or hold Gainey in contempt of court.

24 Hour News 8 left a message Thursday afternoon for Gainey Corporation's attorney requesting comment.

Gainey Corporation took a major step forward earlier this month when Gregg agreed to a deal between the corporation and the lenders allowing Gainey to use its cash to operate through the end of May.

The corporation has to file a reorganization plan by the end of March.