MOTION FOR RELIEF FROM STAY REGARDING EQUIPMENT PAGE 1 

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE NORTHERN DISTRICT OF TEXAS

FORT WORTH DIVISION

IN RE:

GANDY’S TRANSPORT, LLC

DEBTORS. 

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CASE NO. 24-43354-elm11

CHAPTER 11 

FIRST AMENDED PAWNEE LEASING CORPORATION’S MOTION FOR RELIEF 

FROM AUTOMATIC STAY REGARDING EQUIPMENT, OR ALTERNATIVELY, 

MOTION FOR ADEQUATE PROTECTION

PURSUANT TO LOCAL BANKRUPTCY RULE 4001-(b), A 

RESPONSE IS REQUIRED TO THIS MOTION, OR THE 

ALLEGATIONS IN THE MOTION MAY BE DEEMED 

ADMITTED, AND AN ORDER GRANTING THE RELIEF 

SOUGHT MAY BE ENTERED BY DEFAULT.

ANY RESPONSE SHALL BE IN WRITING AND FILED 

WITH THE CLERK OF THE UNITED STATES 

BANKRUPTCY COURT AT 501 W. 10th STREET, ROOM 

147, FORT WORTH, TEXAS 76102-3643, BEFORE CLOSE 

OF BUSINESS ON OCTOBER 16, 2024, WHICH IS AT 

LEAST 14 DAYS FROM THE DATE OF SERVICE 

HEREOF. A COPY SHALL BE SERVED UPON COUNSEL 

FOR THE MOVING PARTY AND ANY TRUSTEE OR 

EXAMINER APPOINTED IN THE CASE. ANY RESPONSE 

SHALL INCLUDE A DETAILED AND COMPREHSNIVE 

STATEMENT AS TO SHOW THE MOVANT CAN BE 

“ADEQUATELY PROTECTED” IF THE STAY IS TO BE 

CONTINUED. 

TO THE HONORABLE UNITED STATES BANKRUPTCY JUDGE:

NOW COMES Pawnee Leasing Corporation ("Movant"), a secured creditor in the abovenumbered and styled bankruptcy case, and files this its Motion for Relief from Automatic Stay 

Regarding Equipment, and in support thereof would respectfully show the Court the following: 

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MOTION FOR RELIEF FROM STAY REGARDING EQUIPMENT PAGE 2

I. Jurisdiction

1. This is a proceeding under Bankruptcy Rules 4001 and 9014, seeking relief under 

Sections 362(d) and 1301(c) of the Bankruptcy Code. This Court has jurisdiction over this 

proceeding pursuant to 28 U.S.C. Section 1334 and Sections 105 and 362 of the Bankruptcy 

Code. This is a core proceeding under 28 U.S.C. Section 157(b)(2)(G).

II. Relevant Facts

2. Gandy’s Transport, LLC (“Debtor”) initiated the instant Chapter 11 proceeding in 

the Northern District of Texas, Fort Worth Division, on September 19, 2024 (the “Petition 

Date”) [Doc #1]. 

3. On or about October 4, 2022, Debtor, as borrower, executed Equipment Finance 

Agreement #398735 (the “Agreement”) with Tandem Finance Inc. (“Tandem”). In conjunction 

therewith, Johnny Lee Gandy Jr. (“Gandy Jr.”) executed a personal guaranty whereby he guaranteed 

full and complete payment and performance of Debtor’s obligations under the subject agreement. A 

true and correct copy of the Agreement, which contains a copy of the subject guaranty, is attached 

hereto and incorporated herein as Exhibit “A.”

4. Pursuant to the Agreement, Debtor agreed to pay sixty (60) monthly payments of 

$2,860.03 until such time as the Agreement was paid in full. In return, Tandem advanced funds

for the Debtor’s purchase and acquisition of the following equipment (the “Equipment"): 

YEAR EQUIPMENT DESCRIPTION VIN/SN

2018 Peterbilt 389 1NPXD49X2JD458359

5. On or about October 5, 2022, Tandem assigned all rights, title, and interest in the 

Agreement and Guaranty to Movant. A true and correct copy of the assignment is attached hereto 

and incorporated herein as Exhibit “B.” 

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MOTION FOR RELIEF FROM STAY REGARDING EQUIPMENT PAGE 3

6. Pursuant to Paragraph 4 of the Agreement, Debtor granted to Movant a security 

interest in the Equipment to secure the performance of Debtor’s obligations and liabilities under 

the Agreement. Movant perfected its first-priority security interest by noting its interest on the 

certificate of title to the Equipment. A true and correct copy of the Certificate of Title is attached 

hereto and incorporated by reference for all purposes as Exhibit “C.”

7. Although Movant fully performed all obligations owed under the Agreement, 

Debtor failed to pay the amounts owed under the Agreement when due. Accordingly, on or about 

June 3, 2024, Movant sent Debtor a Notice of Acceleration. A true and correct copy of the 

Notice of Acceleration is attached hereto and incorporated by reference as Exhibit “D.” 

8. Prior to the Petition Date, Movant recovered possession of the Equipment through 

lawful self-help remedies. In doing so, Movant incurred expenses in the amount of $2,125.00. 

Movant has since relinquished possession of the Equipment as required by the Order Granting 

Debtor’s Emergency Motion to Compel Turnover of Property of the Estate [Doc #31]. A true and 

correct copy of the invoice reflecting fees incurred by Movant is attached hereto and 

incorporated by reference as Exhibit “E.” 

9. As of the Petition Date, the amount of $131,615.20 is due and owing under the 

Agreement, excluding any post-petition interest and fees.

10. As set forth in Debtor’s Schedules [Doc #4, pp. 47.5], Debtor lists the value of the 

Equipment at $120,600.00. Thus, Debtor has no equity interest in the Equipment. However, to 

the extent Debtor is found to have any equity interest in the Equipment, Movant requests it be 

reimbursed its reasonable and necessary attorneys’ fees as set forth below. 

11. The Equipment continues to depreciate and will continue to depreciate while in 

the possession and use of Debtor. Per the Agreement, Debtor is required to maintain valid and 

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MOTION FOR RELIEF FROM STAY REGARDING EQUIPMENT PAGE 4

continuous insurance coverage as to the Equipment. However, it is unclear at this time whether 

Debtor has valid and effective insurance coverage that lists Movant as a loss payee on the 

Equipment or is properly storing and maintaining the Equipment in accordance with 

manufacturer’s guidelines and as otherwise required by the Agreement.

III. Relief from Stay

12. By reason of the foregoing, Movant requests the Court lift the automatic stay as it 

pertains to the Equipment or, alternatively, condition the automatic stay by requiring Debtor to 

tender adequate protection payments sufficient to offset depreciation of the Equipment. A court 

shall grant relief from the automatic stay “for cause, including the lack of adequate protection of 

an interest in property of such party in interest[.]” 11 U.S.C. § 362(d)(1). “Cause” is not defined 

in title 11, which therefore requires bankruptcy courts to determine whether cause exists on a 

case-by-case basis. In re Reitnauer, 152 F.3d 341, 343, n.4 (5th Cir. 1998). 

13. In the instant matter, no agreement has been made as to monthly adequate 

protection payments prior to confirmation. If adequate protection cannot be offered, such use, 

sale or lease of the collateral must be prohibited.” 3 Collier On Bankruptcy ¶ 363.05[2] (16th ed. 

2016); In re First South Sav. Assoc., 820 F.2d 700, 710 (5th Cir. 1987) (the focus of adequate 

protection “is protection of the secured creditor from diminution in the value of its collateral 

during the reorganization process.”); In re Bufford, 343 B.R. 827, 838 (Bankr. N.D. Tex. 2006) 

(“adequate protection must be given to secured creditors, or they may ask that the automatic stay 

imposed by § 362(a) be lifted”); 3 Collier ¶ 363.05[2]. “[A]n interest is not adequate protected if 

the security is depreciating during the term of the stay.” United Sav. Assoc. of Texas v. Timbers 

of Inwood Forest Assoc., Ltd. 484 U.S. 365, 369 (1988). “[I]n proceeding arising under § 

362(d)(1), the debtor must prove that the secured creditor’s interest is adequately protected, or 

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MOTION FOR RELIEF FROM STAY REGARDING EQUIPMENT PAGE 5

the automatic stay will lift.” In re Timbers of Inwood Forest Assoc., Ltd., 793 F.2d 1380, 1388 

(5th Cir. 1986), affirmed, 484 U.S. 365 (1988).

14. Cause exists to modify and condition the automatic stay pursuant to 11 U.S.C. 

§362(d)(1) of the Bankruptcy Code as to the Equipment because: (1) the Equipment continues to 

depreciate in value while in the possession and use of the Debtor; (2) Debtor has not proposed 

tendering pre-confirmation adequate protection payments to Movant; and (3) to the extent Debtor 

has not provided to Movant proof of insurance coverage identifying Movant as a loss payee 

and/or additional insured, Movant’s security interest in such Equipment could be irreparably 

harmed if the Equipment are damaged, improperly stored, improperly maintained, or stolen. 

15. Cause further exists to lift the automatic stay pursuant to 11 U.S.C. § 362(d)(2) of 

the Bankruptcy Code because Debtor admittedly has no equity interest in the Equipment per 

Debtor’s own schedules and the Equipment is not believed to be necessary for an effective 

reorganization of Debtor’s business because reorganization appears unlikely given the Debtor’s 

financial restraints.

16. Movant further requests that an order granting its motion for relief from automatic 

stay, if such order should be entered, will be effective immediately upon entry and that the 

provisions of Rule 4001(a)(3) should be waived and Movant be permitted to immediately 

enforce and implement the order lifting, conditioning and/or modifying the automatic stay. 

IV. Prayer

For the reasons set forth herein, Movant requests that the Court enter an order granting 

Movant’s request to lift the Automatic Stay as to the Equipment to permit Movant to foreclose its 

security interest in the Equipment as prayed for in this motion, and grant to Movant such other 

and further relief to which it may be justly entitled.

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Respectfully Submitted,

PADFIELD & STOUT, LLP

100 Throckmorton Street, Suite 700 

Fort Worth, Texas 76102 

Phone: 817-338-1616 

Fax: 817-338-1610 

/s/ Owen C. Babcock

Christopher V. Arisco 

State Bar I.D. # 24064830

carisco@padfieldstout.com

Owen C. Babcock

State Bar I.D. #24104585 

obabcock@padfieldstout.com 

Jessica N. Alt 

State Bar I.D. #24127981 

jalt@padfieldstout.com 

Attorneys for Pawnee Leasing Corporation 

CERTIFICATE OF CONFERENCE

I certify that on Wednesday, October 2, 2024, I conferred with counsel for the Debtor's 

cousnel by phone call. Debtor's counsel is opposed to the relief sought herein.

/s/ Owen C. Babcock

Owen C. Babcock 

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CERTIFICATE OF SERVICE

The undersigned converted the foregoing document into an electronic image, via portable 

document format (.pdf), electronically submitted same to the Internet web portal for the Clerk of 

this Court utilizing the Electronic Management and Electronic Case Filing system of the Court, 

which has caused service, via Simple Mail Transfer Protocol (e-mail), of a Notice of Electronic 

Filing of this imaged document to the below-identified parties on Wednesday, October 2, 2024; 

said e-mail provides an attributable hyperlink to the document, in portable document format, 

except for Debtor(s), and any other entity so identified below or on the EM/ECF filing sheet, 

whereas in that instance such document was mailed via First Class United States Mail, to-wit:

Gandy’s Transport, LLC

7102 Lighthouse Road

Arlington, Texas 76002

Debtor

M. Jermaine Watson

Cantey Hanger, LLP

600 West 6th Street, Suite 300

Fort Worth, Texas 76102

Counsel for Debtor

United States Trustee

1100 Commerce Street

Room 1254

Dallas, Texas 75242

All those receiving ECF notification for 

this case and on the attached list of the 20 

largest unsecured creditors.

/s/ Owen C. Babcock

Owen C. Babcock

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American Express 

P.O. Box 6031 

Carol Stream, IL 60197 

Balboa Capital 

575 Anton Blvd., Suite 

1080 

Costa Mesa, CA 92626 

Caine & Weiner 

Progressive Insurance 

PO Box 55848 

Sherman Oaks, CA 91413 

California Air Resources 

1001 I Street 

Sacramento, CA 95812 

Capital One 

PO Box 60519 

City of Industry, CA 

91716 

COMDATA 

PO Box 845738 

Dallas, TX 75284 

Huntington Bank 

PO Box 77077 

Minneapolis, MN 55480 

IFPS 

PO Box 7 

Greenville, SC 29602 

Internal Revenue Service 

2021 PO Box 931200 

Louisville, KY 40293 

Lube Zone 

PO Box 713380 

Chicago, IL 60677 

Mitsubishi 

PO Box 5700 

Norwalk, CT 06856 

Navitas 

PO Box 935204 

Atlanta, GA 31193 

Orchard Consulting 

1119 Surrey Ln. 

Allen, TX 75013 

PNC Bank 

PO Box 71335 

Philadelphia, PA 19176 

Tandem Finance 

3801 Automation Way 

Fort Collins, CO 80525 

TXU 

PO Box 650700 

Dallas, TX 75265 

Umpqua Bank 

3455 S. 344th Way 

Auburn, WA 98001 

Twenty Largest Unsecured Creditors 

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