How did AGX Freight become insolvent if it was separately managed and financially responsible?

According to the Florida complaint, AGX was a co-borrower under a shared $85 million revolving credit facility with R&R Express Holdco and other R&R entities. When defaults occurred elsewhere in the R&R group in late 2025, Huntington National Bank froze all lending advances, including to AGX. Despite maintaining separate accounting and operational controls, AGX lost access to its working capital because Huntington treated all co-borrowers as jointly and severally liable. This structure meant AGX's creditworthiness was irrelevant once the collective lending agreement was triggered.

What financial obligations did AGX's collapse create for carriers?

AGX's cessation of operations left approximately $3 million owed to independent motor carriers that had hauled freight on the company's behalf. These carriers faced immediate payment default despite having delivered services. The article also notes that Huntington's complaint cited failure to timely pay carriers as one of the defaults triggering the credit freeze, suggesting carrier payment obligations were among the first expenses to be cut when liquidity evaporated.

What was the ownership structure that contributed to this situation?

According to Huntington's complaint, R&R Express Holdco owned 60% of AAGEX Freight Group (AGX's parent company), while former AGX executive Mike Williams owned the remaining 40%. This mixed ownership structure, combined with the shared credit facility and joint liability provisions, meant that R&R's financial problems directly compromised AGX's capital access despite operational separation. The complexity of ownership and financing relationships was identified as a key factor in how financial distress spread through the R&R ecosystem.

What is the total outstanding debt across R&R-related entities?

As of April 9, 2025, more than $12 million remained outstanding on AGX-related operating loans alone under the shared revolving credit facility. However, this represents only a portion of the broader R&R collapse. The article references multiple other lawsuits filed by Huntington National Bank, Jimenez Logistics, and Vantage Carrier over unpaid freight invoices and outstanding debt obligations, suggesting total exposure across the group is significantly higher.

What should carriers and freight brokers learn from the AGX collapse?

The AGX case demonstrates several critical risks: (1) Carrier payment vulnerability when brokers operate under shared, cross-collateralized lending arrangements; (2) The importance of understanding a broker's capital structure and lending relationships before committing to freight; (3) The need for carriers to diversify broker relationships to limit exposure to any single entity's insolvency; and (4) The systemic risk posed by complex financing structures in logistics, where one co-borrower's failure can trigger network-wide defaults.

Risk & Disruption

High Impact

AGX Freight Sues R&R, Huntington Over Frozen Credit Line

May 26, 2026

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, CEO Richard Francis, and Huntington National Bank, alleging they orchestrated the company's insolvency through shared financing structures. The central dispute involves an $85 million revolving credit facility that tied AGX's financial fate to the broader R&R Group—when other co-borrowers defaulted, Huntington froze advances across the entire lending syndicate, liquidating AGX despite the brokerage maintaining separate operations and responsible borrowing practices. The litigation exposes a critical vulnerability in supply chain finance: **cross-collateralization risk** among affiliated entities.

AGX alleges it operated independently with sound financial management but was dragged into insolvency by co-borrowers' failures. The shutdown left approximately $3 million owed to independent motor carriers, creating cascading payment defaults through the carrier network. For supply chain professionals, this case underscores the dangers of shared lending arrangements and highlights how financial contagion can spread from one entity to entire networks of service providers.

The case also reflects broader industry stress in freight brokerage and logistics, where high leverage, thin margins, and economic volatility create systemic risks. As more disputes surface involving unpaid carrier invoices and debt obligations across R&R's affiliated entities, the incident demonstrates how a single financial failure can trigger operational collapse across multiple tiers of the supply chain ecosystem.

#freight-broker-collapse

#working-capital-crisis

#carrier-payment-default

#asset-backed-lending

#supply-chain-insolvency

#logistics-litigation

#credit-line-freeze

#carrier-risk

#r-and-r-family-cos

#transportation-finance

Frequently Asked Questions

What This Means for Your Supply Chain

Simulation Suggestion

immediate

What if 30% of carrier base reduces freight commitments due to payment default risk?

Model the impact on freight brokerage capacity and service levels if carriers reduce commitments by 30% following the AGX payment default and similar insolvencies. Adjust carrier availability, freight fulfillment rates, and service level targets to reflect reduced willingness to work with brokers facing financial stress. Measure impact on broker revenue, shipment delays, and customer service scores.

Run this scenario

Simulation Suggestion

this week

What if carrier payment terms tighten from net-30 to net-7 due to insolvency risk?

Model the working capital impact on brokers and shippers if carriers demand shorter payment terms (net-7 vs. net-30) following multiple insolvencies in the freight brokerage sector. Adjust cash flow timing, days working capital, and operational cash requirements. Measure the ripple effect on broker financing needs and profitability.

Run this scenario

Simulation Suggestion

this month

What if credit facilities impose stricter covenants on shared lending structures?

Simulate the financial impact on logistics companies if lenders eliminate cross-collateralization among affiliated entities and require separate credit facilities with individual covenants. Model increased borrowing costs, reduced credit availability, and the need for additional working capital cushions. Assess how this affects freight brokerage margins and operational flexibility.

Run this scenario

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