Mystic Tanks Lines Files for Chapter 11 Bankruptcy

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ystic Tank Lines Corp. said Tuesday it filed for Chapter 11 bankruptcy protection.

The company, founded in 1973, said in a release it is a transporter of gasoline, jet fuel, oil and other petroleum products, as well as cement and asphalt from Maine to Virginia.

Mystic said it has more than 300 vehicles, four main terminals and 500 employees and independent contractors.

"Our filing is principally a result of a number of intransigent legal issues, most of which are related to an insurance fraud that victimized Mystic and other large transportation companies," said President Leonard Baldari.

"Additionally, a number of financial problems have negatively impacted our operating results for the past three years."

Mystic said it reached an agreement with Wells Fargo Business Credit for financing that would permit it to continue operating without interruption.