Labor hiring company ensnared in fatal LaPlace bus crash files for bankruptcy protection

Facing a wave of lawsuits over a traffic wreck that claimed three lives, the company that was looking to hire the prospective flood-relief workers whose bus crashed in LaPlace last summer recently filed for Chapter 11 bankruptcy protection.

Wallace, Rush, Schmidt Inc. listed less than $1.7 million in assets and more than $2.7 million in liabilities this week, after voluntarily filing for bankruptcy in New Orleans federal court on March 24.

Chapter 11 filings shield companies from being sued by those to whom they owe money while they embark on a court-supervised reorganization of their finances.

WRS is registered to Arkansas state Rep. David Wallace, St. Tammany Parish Constable Eddie Schmidt and Howard Gerald Rush III of Denver. It also has done business as Wallace Resource Systems and Wallace Staffing and Labor.

Read more: http://www.theadvocate.com/new_orleans/news/courts/article_7b5172d4-1bc4-11e7-ab8c-fb299ea01e34.html