UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549
--------------------------------------------------------------------------------

                                    FORM 8-K


                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


Date of Report (Date of earliest event reported):             August 22, 2002
                                                           ---------------------

                              MATLACK SYSTEMS, INC.
                   (Debtor-In-Possession as of March 29, 2001)
             (Exact name of registrant as specified in its charter)

           Delaware                     1-10105                 51-0310173
--------------------------------------------------------------------------------
(State or Other Jurisdiction of       (Commission            (I.R.S. Employer
Incorporation or Organization)       File Number)         Identification Number)

 One Rollins Plaza, Wilmington, Delaware                           19803
--------------------------------------------------------------------------------
(Address of Principal Executive Offices)                        (Zip Code)

Registrant's telephone number, including area code:               (302) 426-3400
                                                               -----------------

                                       N/A
--------------------------------------------------------------------------------
          (Former Name or Former Address, if Changed Since Last Report)




<PAGE>


Item 5.   Other Events.

          Matlack Systems,  Inc., a Delaware  corporation  (the  "Company"),  is
filing herewith the Monthly Operating Report for the period from July 1, 2002 to
July 31,  2002,  which the Company has filed with the United  States  Bankruptcy
Court for the District of Delaware,  in connection  with the ongoing  proceeding
under Chapter 11 of the United States  Bankruptcy Code involving the Company and
all of its wholly owned subsidiaries, Case No. 01-1114 (MFW).

Item 7.   Financial Statements, Pro Forma Financial Information, and Exhibits.

          (c)       Exhibits:

                    99(q)     Monthly  Operating Report for the period from July
                              1, 2002 to July 31 30, 2002.




<PAGE>


                                   SIGNATURES

          Pursuant to the  requirements of the Securities  Exchange Act of 1934,
the  Registrant  has duly  caused  this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                              MATLACK SYSTEMS, INC.


Dated:   August 28, 2002       By: /s/ Stephen E. Judge
                                   ---------------------------------------------
                                   Stephen E. Judge
                                   Chief Reorganization Officer




<PAGE>


                                  EXHIBIT INDEX

Exhibit No.                            Description

99(q)     Monthly  Operating Report for the period from July 1, 2002 to July 31,
          2002.


<PAGE>
                         UNITED STATES BANKRUPTCY COURT
                              DISTRICT OF DELAWARE

In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  July 1, 2002 to July 31, 2002


                            MONTHLY OPERATING REPORT

     File with Court and submit  copy to United  States  Trustee  within 20 days
after end of month


<TABLE>
<CAPTION>
                                                                                              Document      Explanation
 REQUIRED DOCUMENTS                                                    Form No.               Attached      Attached
 ------------------                                                    --------               --------      --------
<S>                                                                        <C>
 Schedule of Cash Receipts and Disbursements                           MOR-1                  Yes
   Bank Reconciliation (or copies of debtor's bank reconciliations)    MOR-1 (CON'T)          Yes           Note 1
   Copies of bank statements                                                                  No
   Cash disbursements journals                                                                No
 Statement of Operations                                               MOR-2                  Yes
 Balance Sheet                                                         MOR-3                  Yes
 Status of Postpetition Taxes                                          MOR-4                  Yes
   Copies of IRS Form 6123 or payment receipt                                                 No            N/A
   Copies of tax returns filed during reporting period                                        No            Note 2
 Summary of Unpaid Postpetition Debts                                  MOR-4                  Yes
   Listing of aged accounts payable                                                           N/A           Note 3
 Accounts Receivable Reconciliation and Aging                          MOR-5                  Yes
 Debtor Questionnaire                                                  MOR-5                  Yes
</TABLE>


I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and
the  attached  documents  are true and correct to the best of my  knowledge  and
belief.




 ---------------------------------------      ----------------------
 Signature of Debtor                          Date



 ---------------------------------------      ----------------------
 Signature of Joint Debtor                    Date


 /s/ Stephen E. Judge                         August 20, 2002
 ---------------------------------------      ----------------------
 Signature of Authorized Individual*          Date



 Stephen E. Judge                             Chief Reorganization Officer
 ---------------------------------------      ----------------------------------
 Printed Name of Authorized Individual        Title of Authorized Individual




Note 1: Detailed bank reconciliations available upon request.
Note 2: Tax returns relating to the Post-Petition available upon request.
Note 3: Debtor no longer has Accounts Receivable outstanding.



<PAGE>



In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  July 1, 2002 to July 31, 2002

                   SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
Amounts reported should be per the debtor's books,  not the bank statement.  The
beginning cash should be the ending cash from the prior month or, if this is the
first  report,  the amount  should be the balance on the date the  petition  was
filed.  The amounts  reported in the "CURRENT  MONTH - ACTUAL" column must equal
the  sum  of  the  four  bank  account  columns.  The  amounts  reported  in the
"PROJECTED" columns should be taken from the SMALL BUSINESS INITIAL REPORT (FORM
IR-1). Attach copies of the bank statements and the cash disbursements  journal.
The total disbursements listed in the disbursements journal must equal the total
disbursements  reported on this page. A bank reconciliation must be attached for
each account. [See MOR-1 (CON'T)]
<TABLE>
<CAPTION>
                                             BANK ACCOUNTS                For the Current Period
                                                                     From July 1, 2002 to July 31, 2002  Cumulative Since Filing
                                       OPERATING     PAYROLL & TAX      Actual        Projected            Actual      Projected
                                       ---------     -------------      ------        ---------            ------      ---------
                                           (Note 1)
Cash Receipts
<S>                                  <C>                              <C>           <C>                 <C>           <C>
    Collection of Accounts           $       4,534                    $      4,534  $        -          $ 55,771,202  $ 56,532,000
Receivable
    Other                                   30,446                          30,446           --            7,528,367     4,635,916
                                     -------------- ---------------  -------------- ---------------     ------------- ------------
    Total Cash Receipts                     34,980                          34,980              0         63,299,569    61,167,916
                                     -------------- ---------------  -------------- ---------------     ------------- ------------
Cash Disbursements

    Total Payroll                             -            39,208           39,208         35,000         22,339,178    22,594,583

    Leased Operators                          -                               -                            4,861,230     4,890,000

    Operating Expenses

        Fuel                                   -                               -             -             4,238,356     5,037,000

        Occupancy costs                     12,522                          12,522         10,000          2,176,032     2,790,600

        Equipment Costs                       -                               -             5,000          2,160,958     2,776,800

        Insurance                           24,392                          24,392         20,000          6,124,405     7,073,800

        Other Operating Expenses            38,913                          38,913         35,000          8,577,233    10,885,998
                                     -------------- ---------------  -------------- ---------------     ------------- ------------
    Total Operating Expenses                75,827                          75,827         70,000         23,276,984    28,564,198

    Deposits with Key Vendors                 -                               -              -                41,148       150,000

    CAPEX - Equipment Refurbishment           -                               -              -                13,050       399,200

    Deferred Rental and Leasing               -                               -              -                97,789     1,448,000
Costs

    Restructuring Costs                      2,354            -              2,354         25,000          7,099,137     9,717,097

    Remittance of Equipment Sales                                                                          6,382,766          -
    Proceeds to Secured Lender            (130,000)                       (130,000)

  Inter - Account Transfer                  39,208        (39,208)                                              -
                                     -------------- ---------------  -------------- ---------------     ------------- ------------
    Total Disbursements                    (12,611)          -             (12,611)       130,000         64,111,282    67,763,078
                                     -------------- ---------------  -------------- ---------------     ------------- ------------
Net Cash Flow/Requirements                  47,591           -              47,591       (130,000)          (811,713)   (6,595,162)

    Opening Cash                            56,378                          56,378     (5,148,162)           915,682     1,317,000
                                     -------------- ---------------  -------------- ---------------     ------------- ------------
   Closing Cash                      $     103,969                   $     103,969  $  (5,278,162)       $   103,969  $ (5,278,162)
                                     ============== ===============  ============== ===============     ============= ============

                     THE FOLLOWING SECTION MUST BE COMPLETED
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES:  (FROM CURRENT MONTH ACTUAL COLUMN)
                                                                           Q1 2001          Q2 2001            Q3 2001      04 2001
                                                                           -------          -------            -------      -------
TOTAL DISBURSEMENTS                                                      $ 150,000     $ 31,512,851       $ 22,023,905   $6,840,682
    LESS:         TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS                     0                0                  0
    PLUS:         ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES
      (i.e. from escrow accounts)                                                0                0                  0

TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES          $ 150,000     $ 31,512,851       $ 22,023,905   $6,840,682
                                                                         =========     ============       ============   ==========

                                                                           Q1 2002          Q2 2002            Q3 2002
                                                                           -------          -------            -------
TOTAL DISBURSEMENTS                                                    $ 3,430,322     $    166,133       $    (12,611)
    LESS:         TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS                     0                0                  0
    PLUS:         ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES
      (i.e. from escrow accounts)                                                0                0

TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES        $ 3,430,322     $    166,133       $    (12,611)
                                                                       ===========     ============       ============
</TABLE>

Note 1:   The  Operating  Account  represents  the  aggregate  of the  Company's
          operating  accounts  including  $US & $Cnd  Disbursement  and  Lockbox
          accounts.


<PAGE>



In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                 Reporting Period: July 1, 2002 to July 31, 2002

                              BANK RECONCILIATIONS
                          Continuation Sheet for MOR-1
   A bank  reconciliation  must be included for each bank account.  The debtor's
bank reconciliation may be substituted for this page.

<TABLE>
<CAPTION>
                                                                       Expressed in
                                                                           USD
                                                                       Converted @
                                                                         1:1.1.51
                  ------------------------------------------------------------------------------------------------------
                        1            3           4           Dec            6             9          12
                    Operating                Operating                  Operating        Tax     Matlack
                     (Mellon     Operating     (First     Operating    Bank of Nova  Prefunding     Inc.
                    Lockbox)    (Mellon DE)    Union)       Mellon        Scotia       Mellon     Working
                    #145-2480   #8016-376-9 #200003263225  #0090907     #00820-15     #021-8181    Funds
                     Note 1       Note 3       Note 4    3  Note 5        Note 6       Note 9     Note 10   Grand Total
                  ------------------------------------------------------------------------------------------------------
BALANCE PER BOOKS $   100,130   $     6,411        $ 0    ($ 17,675)     $      0          $ 0       $ 300  $    89,166
------------------------------------------------------------------------------------------------------------------------
<S>               <C>           <C>                <C>          <C>           <C>          <C>          <C> <C>
 BANK BALANCE     $   100,103   $   18,563         $ 0          $ 0           $ 0          $ 0          $0  $   118,666
 (+) DEPOSITS IN          $ 0          $ 0         $ 0          $ 0           $ 0                                   $ 0
 TRANSIT
 (-) OUTSTANDING  ($    2,545) ($   12,152)        $ 0          $ 0           $ 0          $ 0             ($    14,697)
 CHECKS
 OTHER                    $ 0          $ 0         $ 0          $ 0           $ 0                                   $ 0
                  ------------------------------------------------------------------------------------------------------
 ADJUSTED BANK    $    97,558   $    6,411         $ 0          $ 0          $  0          $ 0         $ 0  $   103,969
 BALANCE*
                  ------------------------------------------------------------------------------------------------------
* Adjusted bank                                                                                              (NOTE 11)
  balance must
  equal balance
  per books (see
  Note 11)
 DEPOSITS IN             None         None        None         None          None         None        None
 TRANSIT
 CHECKS                   Yes         None         None        None          None         None        None
 OUTSTANDING

 OTHER
</TABLE>

Note 1:   This account is used  primarily  for  collection  of cash  receipts on
          trade  receivables,  to wire funds to trade  suppliers and to fund the
          payroll  accounts,  as well as to receive wire transfers of funds from
          outside parties.
Note 3:   This account is used for cash receipts unrelated to trade receivables.
Note 4:   This account is not active.
Note 5:   This account is used for disbursements to pay trade payables by check.
          The list of  outstanding  checks is  attached  to the  Company's  Bank
          reconciliation.
Note 9:   These accounts are funded by the Mellon lockbox account to pay various
          taxes.
Note 10:  This  represents the aggregate of the terminal  working fund accounts,
          the funding of which are reflected as disbursements in the Schedule of
          Cash Receipts & Disbursements.


<PAGE>


In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  July 1, 2002 to July 31, 2002


                             STATEMENT OF OPERATIONS

                               (Income Statement)


The Statement of Operations is to be prepared on an accrual  basis.  The accrual
basis of  accounting  recognizes  revenue when it is realized and expenses  when
they are incurred, regardless of when cash is actually received or paid.

<TABLE>
<CAPTION>
                                                                    Current                 Cumulative
                                                                     Month                Filing to Date
                                                                     -----                --------------

       REVENUES
<S>                                                                      <C>                    <C>
       Revenue (Net)                                                     $  4,000               $ 40,053,221
                                                           -------------------------- ------------------------
       OPERATING EXPENSES
           Owned Compensation                                                 335                  9,795,960
           Leased Operator Compensation                                         0                  5,017,266
           Fuel Expense                                                         0                  3,002,342
           Misc. Direct Costs                                             (25,160)                 5,478,725
           Cleaning Expenses                                               20,450                  6,193,371
           Mechanics Compensation                                               0                  1,266,834
           Misc. Maintenance Expense                                            0                  2,189,685
           Equipment Costs                                                      0                  7,808,778
           Terminal Expenses                                                5,256                  9,391,893
                                                           -------------------------- ------------------------
                TOTAL OPERATING EXPENSES                                      881                 50,144,854
                                                           -------------------------- ------------------------
       GROSS PROFIT / (LOSS)                                                3,119                (10,091,633)
                                                           -------------------------- ------------------------
       G&A EXPENSES                                                        37,749                 14,373,124
                                                           -------------------------- ------------------------
       OPERATING PROFIT / (LOSS)                                          (34,630)               (24,464,757)

       OTHER INCOME / EXPENSE
           Gain/Loss on Sale of Equipment                                   1,100                 13,734,560
           Other Income/Deductions                                              0                    928,580
                                                           -------------------------- ------------------------
                TOTAL OTHER INCOME/EXPENSES                                 1,100                 14,663,140
                                                           -------------------------- ------------------------
       PROFIT / (LOSS)                                                  ($ 35,730)             ($ 39,127,897)
                                                           -------------------------- ------------------------
</TABLE>




<PAGE>


In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  July 1, 2002 to July 31, 2002

<TABLE>
<CAPTION>
                  STATEMENT OF OPERATIONS - continuation sheet


                                                                                                    Cumulative
BREAKDOWN OF "OTHER" CATEGORY                                                    Month              Filing to Date
-----------------------------                                                    -----              --------------
Revenue
<S>                                                                                  <C>             <C>
   Owned Linehaul Revenue                                                            0               20,035,706
   Owned Accessorial Revenue                                                         0                4,477,068
   Leased Linehaul Revenue                                                           0                6,865,934
   Leased Accessorial Revenue                                                        0                  774,372
   Cleaning Revenue                                                                  0                4,970,227
   Other Operating Revenue                                                       4,000                1,619,730
   X-Rail Revenue                                                                    0                  986,185
   Maintenance Revenue                                                               0                  323,999
                                                                  ------------------------ ----------------------
                                                                                 4,000               40,053,221
                                                                  ------------------------ ----------------------
Owned Compensation
   Driver Pay Hourly                                                                 0                3,091,600
   Driver Overtime Pay                                                               0                   34,120
   Contractual Pay Mile                                                              0                3,554,726
   Fringe Benefits                                                                 335                3,115,514
                                                                  ------------------------ ----------------------
                                                                                   335                9,795,960
                                                                  ------------------------ ----------------------
Leased Operator Comp
   Leased Operator Comp                                                              0                4,948,634
   Purchased Transportation                                                          0                   68,632
                                                                  ------------------------ ----------------------
                                                                                     0                5,017,266
                                                                  ------------------------ ----------------------
Fuel Expense
   Fuel Terminal                                                                     0                1,150,105
   Fuel Outside                                                                      0                1,820,865
   Fuel Taxes                                                                        0                    3,904
   Oil and Oil Tax                                                                   0                   27,468
                                                                  ------------------------ ----------------------
                                                                                     0                3,002,342
                                                                  ------------------------ ----------------------
Misc Direct Costs
   Utility Pay Hourly                                                                0                  203,219
   Utility Fringe Benefits                                                           0                    7,902
   Tire                                                                              0                2,202,439
   Hose                                                                              0                  151,023
   Meals                                                                             0                  218,725
   Lay Over                                                                          0                  611,616
   Tolls                                                                             0                  165,110
   Fines                                                                             0                   14,452
   Mileage Taxes                                                               (25,160)                  87,334
   Insurance                                                                         0                1,816,905
                                                                  ------------------------ ----------------------
                                                                               (25,160)               5,478,725
                                                                  ------------------------ ----------------------
Cleaning Expenses
   Cleaners Pay                                                                      0                1,040,407
   Overtime Pay                                                                      0                   42,431
   Fringe Benefits                                                                   0                  690,965
   Cleaning Supplies                                                                 0                  476,089
   Waste Treatment                                                                   0                1,039,350
   Outside Contractors                                                               0                  727,755
   Net Cleaning Interbranch                                                          0                   (1,285)
   Environmental                                                                20,450                2,177,659
                                                                  ------------------------ ----------------------
                                                                                20,450                6,193,371
                                                                  ------------------------ ----------------------
Mechanics Compensation
   Mechanics Pay                                                                     0                  772,715
   Overtime Pay                                                                      0                   53,916
   Fringe Benefits                                                                   0                  440,203
   Net Mechanics Interbranch                                                         0                        0
                                                                  ------------------------ ----------------------
                                                                                     0                1,266,834
                                                                  ------------------------ ----------------------
</TABLE>



<PAGE>


In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  July 1, 2002 to July 31, 2002

                  STATEMENT OF OPERATIONS - continuation sheet
<TABLE>
<CAPTION>
                                                                                                     Cumulative
BREAKDOWN OF "OTHER" CATEGORY                                                    Month              Filing to Date
-----------------------------                                                    -----              --------------
Misc Maintenance Expense
<S>                                                                                  <C>              <C>
   Parts Expense                                                                     0                1,213,644
   Outside Repairs                                                                   0                  752,782
   Tire Repair                                                                       0                   89,458
   Shop Expense                                                                      0                  133,801
                                                                  ------------------------ ----------------------
                                                                                     0                2,189,685
                                                                  ------------------------ ----------------------
Equipment Costs
   Tractor Depreciation                                                              0                   59,706
   Tractor Rent                                                                      0                2,541,450
   Trailer Depreciation                                                              0                1,044,877
   Trailer Rent                                                                      0                  102,087
   License                                                                           0                  952,435
   Permit                                                                            0                   96,312
   Interest                                                                          0                3,011,911
                                                                  ------------------------ ----------------------
                                                                                     0                7,808,778
                                                                  ------------------------ ----------------------
Terminal Expenses
   Terminal Salary & Fringe                                                      1,446                3,696,862
   Utilities                                                                     5,287                  982,250
   Communication Equipment                                                           0                  102,886
   Communication Usage                                                               0                  715,209
   Facility Maintenance                                                              0                  290,991
   Facility Occupancy                                                                0                1,497,188
   Transportation General                                                       (1,477)               2,106,507
                                                                  ------------------------ ----------------------
                                                                                 5,256                9,391,893
                                                                  ------------------------ ----------------------
G&A Expenses
   Salaries Expense                                                             24,614                6,069,370
   Fringe Benefits                                                                   0                  (79,434)
   Communications Basic                                                              0                   75,154
   Communication Services                                                            0                    7,732
   Facilities - Rents                                                            6,747                  329,809
   General Office Supplies                                                          59                   45,549
   IBM Supplies                                                                      0                    4,147
   Conventions & Seminars                                                            0                   14,322
   Postage                                                                           0                   81,962
   Travel & Other                                                                  991                  191,873
   Outside Services                                                                842                5,024,113
   Computer Software                                                                 0                   36,225
   General & Admin                                                               3,612                  205,626
   Marketing Promotions                                                              0                    7,010
   Legal                                                                           360                  328,003
   Insurance                                                                         0                  288,363
   Dues & Contributions                                                              0                      361
   Depreciation                                                                      0                  118,339
   Depreciation - Leasehold                                                          0                   40,740
   Computer Equipment Rent                                                         524                  363,769
   Other Expense/Terminal Exp.                                                       0                1,220,091
                                                                  ------------------------ ----------------------
                                                                                37,749               14,373,124
                                                                  ------------------------ ----------------------
</TABLE>



<PAGE>


In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  July 1, 2002 to July 31, 2002

                                  BALANCE SHEET

          The  Balance  Sheet  is to be  completed  on an  accrual  basis  only.
Pre-petition   liabilities  must  be  classified  separately  from  postpetition
obligations.
<TABLE>
<CAPTION>
                                                           BOOK VALUE AT END OF               BOOK VALUE ON
ASSETS                                                   CURRENT REPORTING MONTH              PETITION DATE

CURRENT ASSETS
<S>                                                               <C>                                <C>
   Cash                                                           $      89,166                      $    389,571
   Restricted Cash                                                            0
   Accounts Receivable (Net)                                              4,000                        18,045,306
   Inventories                                                                0                         3,639,142
   Prepaid Expenses                                                     390,000                         2,108,548
                                                     --------------------------------- -----------------------------
         TOTAL CURRENT ASSETS                                           483,166                        24,182,567
                                                     --------------------------------- -----------------------------
PROPERTY AND EQUIPMENT
   Revenue Equipment - Cost                                                   0                        98,199,269
   Less:  Accumulated Depreciation (Revenue)                                  0                       (75,767,277)
   Other Property & Equipment - Cost                                  2,020,041                        72,633,319
   Less:  Accumulated Depreciation (Other)                           (1,330,730)                      (41,326,073)
                                                     --------------------------------- -----------------------------
         TOTAL PROPERTY & EQUIPMENT                                     689,311                        53,739,238
                                                     --------------------------------- -----------------------------
OTHER ASSETS
   Goodwill                                                                   0                           744,016
   Other Assets                                                               0                           937,839
                                                     --------------------------------- -----------------------------
         TOTAL OTHER ASSETS                                                   0                         1,681,855
                                                     --------------------------------- -----------------------------

TOTAL ASSETS                                                       $  1,172,477                     $  79,603,660
                                                     --------------------------------- -----------------------------


                                                           BOOK VALUE AT END OF               BOOK VALUE ON
LIABILITIES AND OWNER EQUITY                             CURRENT REPORTING MONTH              PETITION DATE
LIABILITIES NOT SUBJECT TO COMPROMISE
(Postpetition)
   Accounts Payable                                                   1,251,951
   Accrued Wages & Benefits                                             336,248
   Accrued Interest                                                   3,011,910
   Accrued Professional Fees (Note 1)                                   223,225
   Accrued Taxes (refer to FORM MOR-4)                                  214,370
   Accrued Insurance, Environmental & Other                            (935,976)
   Amounts Due to Insiders (Note 1)
                                                     --------------------------------- -----------------------------
         TOTAL POSTPETITION LIABILITIES                               4,101,728                                 0
                                                     --------------------------------- -----------------------------
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
   Secured Debt                                                      48,234,256                        48,234,256
   Remittance of Sale Proceeds to Secured Lenders                   (37,374,952)
   Priority Debt                                                      2,272,119                         9,330,355
   Unsecured Debt                                                    32,153,819                        33,125,644
                                                     --------------------------------- -----------------------------
         TOTAL PRE-PETITION LIABILITIES                              45,285,241                        90,690,255
                                                     --------------------------------- -----------------------------
                                                     --------------------------------- -----------------------------
   TOTAL LIABILITIES                                                 49,386,969                        90,690,255
                                                     --------------------------------- -----------------------------
OWNER EQUITY
   Capital Stock                                                      8,814,434                         8,814,434
   Capital Surplus                                                   10,619,341                        10,619,341
   Retained Earnings - Pre-Petition                                 (28,520,370)                      (28,520,370)
   Retained Earnings - Post-Petition                                (39,127,897)
   Post-Petition Contributions (Distributions) (Draws)
(attach schedule)
                                                     -------------------------------- ------------------------------
   NET OWNER EQUITY                                                 (48,214,492)                       (9,086,595)
                                                     -------------------------------- ------------------------------

TOTAL LIABILITIES AND OWNERS' EQUITY                                 $1,172,477                       $81,603,660
                                                     -------------------------------- ------------------------------
</TABLE>

Note 1:   Amounts due to insiders are included in Accounts  Payables and Accrued
          Wages.



<PAGE>


In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  July 1, 2002 to July 31, 2002



                          STATUS OF POSTPETITION TAXES


          The beginning tax liability  should be the ending  liability  from the
prior month or, if this is the first report,  the amount should be zero.  Attach
photocopies of IRS Form 6123 or payment  receipt to verify payment or deposit of
federal  payroll taxes.  Attach  photocopies of any tax returns filed during the
reporting period.

<TABLE>
<CAPTION>
                                         Beginning     Amount                                               Ending
                                            Tax       Withheld      Amount        Date       Check No.        Tax
                                         Liability   or Accrued      Paid         Paid         or EFT      Liability
                                         ---------   ----------      ----         ----         ------      ---------
Federal
<S>                                             <C>      <C>          <C>                                         <C>
Withholding                                     0        4,773        4,773      Various        EFT               0
FICA - Employee                                 0        1,103        1,103      Various        EFT               0
FICA - Employer                                 0        1,103        1,103      Various        EFT               0
Unemployment                                    0            0            0                                       0
Other                                           0            0            0                                       0
                                        ------------ ------------ ------------ ------------ ------------- ------------
    Total Federal Taxes                         0        6,979        6,979                                       0
                                        ------------ ------------ ------------ ------------ ------------- ------------
State and Local
Withholding                                 3,773        1,395        3,773                                   1,395
Sales                                      72,596            0            0                                  72,596
Income                                          0            0            0                                       0
Unemployment                                    0            0            0                                       0
Real & Personal Property                  125,195            0            0                                 125,195
Other                                     390,771            0            0                                 390,771
                                        ------------ ------------ ------------ ------------ ------------- ------------
    Total State and Local                 611,074        1,395        3,773                                 589,957
                                        ------------ ------------ ------------ ------------ ------------- ------------
Total Taxes                               611,821        8,374       10,752                                 589,957
                                        ------------ ------------ ------------ ------------ ------------- ------------
</TABLE>


                      SUMMARY OF UNPAID POSTPETITION DEBITS

Attach aged listing of accounts payable.
<TABLE>
<CAPTION>
                                                                   Number of Days Past Due
                                          Current       0-30         31-60        61-90       Over 90        Total
                                          -------       ----         -----        -----       -------        -----
<S>                                                  <C>                  <C>                             <C>
Accounts Payable                                     1,251,951            0                               1,251,951
Accrued Wages & Benefits                               336,248                                              336,248
Accrued Interest                                     3,011,910                                            3,011,910
Accrued Professional Fees                              223,225                                              223,225
Accrued Taxes (refer to FORM MOR-4)                    214,370                                              214,370
Accrued Insurance, Environmental &                    (935,976)                                            (935,976)
Other
                                        ------------ ------------ ------------ ------------ ------------- ------------
Total Post-Petition Debts                            4,101,728            0            0            0     4,101,728
                                        ------------ ------------ ------------ ------------ ------------- ------------
</TABLE>


Explain how and when the Debtor intends to pay any past-due post-petition debts.



<PAGE>


In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  July 1, 2002 to July 31, 2002

<TABLE>
<CAPTION>
                  ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

 Accounts Receivable Reconciliation                                                 Amount
 ----------------------------------                                                 ------
<S>                                                                                 <C>
 Total Accounts Receivable at the beginning of the reporting period                 $    4,000
 + Amounts billed during the period                                                      4,000    (Note 1)
 - Amounts collected during the period                                                  (4,000)
 - Bad Debt and other write-offs                                                             0
 + Change in Reserve                                                                         0
 - Other during the period                                                                   0
 Total Accounts Receivable at the end of the reporting period                       $    4,000

 Accounts Receivable Aging                                                          Amount
 -------------------------                                                          ------
 0 - 30 days old                                                                         4,000
 31 - 60 days old                                                                            0
 61 - 90 days old                                                                            0
 91 + days old                                                                               0
                                                                                         4,000
 Foreign exchange, Revenue Recognition, Sales Accrual Adjustments &
 Write-offs                                                                                  0
 Amount considered uncollectible (Bad Debt)                                                  0
 Accounts Receivable (Net)                                                          $    4,000


                              DEBTOR QUESTIONNAIRE

 Must be completed each month                                                Yes               No
 ----------------------------                                                ---               --
 1.   Have any assets been sold or transferred outside the normal course                        X
      of business this reporting period?  If yes, provide an explanation
      below.
 2    Have any funds been disbursed from any account other than a debtor                        X
      in possession account this reporting period?  If yes, provide an
      explanation below.
 3.   Have all postpetition tax returns been timely filed?  If no,             X
      provide an explanation below.
 4.   Are workers compensation, general liability and other necessary          X
      insurance coverages in effect?  If no, provide an explanation below.
</TABLE>
[{"type": "8-K", "sequence": "1", "filename": "matlack8k08-02.txt", "description": "CURRENT REPORT", "secsgml_size_bytes": 51494}]
{"company-data": {"conformed-name": "MATLACK SYSTEMS INC", "cik": "0000837339", "assigned-sic": "4213", "irs-number": "510310173", "state-of-incorporation": "DE", "fiscal-year-end": "0930"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-10105", "film-number": "02752269"}, "business-address": {"street1": "ONE ROLLINS PLAZA", "street2": "2200 CONCORD PIKE", "city": "WILMINGTON", "state": "DE", "zip": "19803", "phone": "3024262700"}, "mail-address": {"street1": "ONE ROLLINS PLAZA", "street2": "2200 CONCORD PIKE", "city": "WILMINGTON", "state": "DE", "zip": "19803"}}
UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549
--------------------------------------------------------------------------------

                                    FORM 8-K

                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):             August 22, 2002
                                                           ---------------------

                              MATLACK SYSTEMS, INC.
                   (Debtor-In-Possession as of March 29, 2001)
             (Exact name of registrant as specified in its charter)

           Delaware                     1-10105                 51-0310173
--------------------------------------------------------------------------------
(State or Other Jurisdiction of       (Commission            (I.R.S. Employer
Incorporation or Organization)       File Number)         Identification Number)

 One Rollins Plaza, Wilmington, Delaware                           19803
--------------------------------------------------------------------------------
(Address of Principal Executive Offices)                        (Zip Code)

Registrant's telephone number, including area code:               (302) 426-3400
                                                               -----------------

                                       N/A
--------------------------------------------------------------------------------
          (Former Name or Former Address, if Changed Since Last Report)
Item 5.   Other Events.

          Matlack Systems,  Inc., a Delaware  corporation  (the  "Company"),  is
filing herewith the Monthly Operating Report for the period from July 1, 2002 to
July 31,  2002,  which the Company has filed with the United  States  Bankruptcy
Court for the District of Delaware,  in connection  with the ongoing  proceeding
under Chapter 11 of the United States  Bankruptcy Code involving the Company and
all of its wholly owned subsidiaries, Case No. 01-1114 (MFW).

Item 7.   Financial Statements, Pro Forma Financial Information, and Exhibits.

          (c)       Exhibits:

                    99(q)     Monthly  Operating Report for the period from July
                              1, 2002 to July 31 30, 2002.
SIGNATURES

          Pursuant to the  requirements of the Securities  Exchange Act of 1934,
the  Registrant  has duly  caused  this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                              MATLACK SYSTEMS, INC.

Dated:   August 28, 2002       By: /s/ Stephen E. Judge
                                   ---------------------------------------------
                                   Stephen E. Judge
                                   Chief Reorganization Officer
EXHIBIT INDEX

Exhibit No.                            Description

99(q)     Monthly  Operating Report for the period from July 1, 2002 to July 31,
          2002.
UNITED STATES BANKRUPTCY COURT
                              DISTRICT OF DELAWARE

In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  July 1, 2002 to July 31, 2002

                            MONTHLY OPERATING REPORT

     File with Court and submit  copy to United  States  Trustee  within 20 days
after end of month
Document      Explanation
 REQUIRED DOCUMENTS                                                    Form No.               Attached      Attached
 ------------------                                                    --------               --------      --------
Schedule of Cash Receipts and Disbursements                           MOR-1                  Yes
   Bank Reconciliation (or copies of debtor's bank reconciliations)    MOR-1 (CON'T)          Yes           Note 1
   Copies of bank statements                                                                  No
   Cash disbursements journals                                                                No
 Statement of Operations                                               MOR-2                  Yes
 Balance Sheet                                                         MOR-3                  Yes
 Status of Postpetition Taxes                                          MOR-4                  Yes
   Copies of IRS Form 6123 or payment receipt                                                 No            N/A
   Copies of tax returns filed during reporting period                                        No            Note 2
 Summary of Unpaid Postpetition Debts                                  MOR-4                  Yes
   Listing of aged accounts payable                                                           N/A           Note 3
 Accounts Receivable Reconciliation and Aging                          MOR-5                  Yes
 Debtor Questionnaire                                                  MOR-5                  Yes
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and
the  attached  documents  are true and correct to the best of my  knowledge  and
belief.

 ---------------------------------------      ----------------------
 Signature of Debtor                          Date

 ---------------------------------------      ----------------------
 Signature of Joint Debtor                    Date

 /s/ Stephen E. Judge                         August 20, 2002
 ---------------------------------------      ----------------------
 Signature of Authorized Individual*          Date

 Stephen E. Judge                             Chief Reorganization Officer
 ---------------------------------------      ----------------------------------
 Printed Name of Authorized Individual        Title of Authorized Individual

Note 1: Detailed bank reconciliations available upon request.
Note 2: Tax returns relating to the Post-Petition available upon request.
Note 3: Debtor no longer has Accounts Receivable outstanding.
In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  July 1, 2002 to July 31, 2002

                   SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
Amounts reported should be per the debtor's books,  not the bank statement.  The
beginning cash should be the ending cash from the prior month or, if this is the
first  report,  the amount  should be the balance on the date the  petition  was
filed.  The amounts  reported in the "CURRENT  MONTH - ACTUAL" column must equal
the  sum  of  the  four  bank  account  columns.  The  amounts  reported  in the
"PROJECTED" columns should be taken from the SMALL BUSINESS INITIAL REPORT (FORM
IR-1). Attach copies of the bank statements and the cash disbursements  journal.
The total disbursements listed in the disbursements journal must equal the total
disbursements  reported on this page. A bank reconciliation must be attached for
each account. [See MOR-1 (CON'T)]
BANK ACCOUNTS                For the Current Period
                                                                     From July 1, 2002 to July 31, 2002  Cumulative Since Filing
                                       OPERATING     PAYROLL & TAX      Actual        Projected            Actual      Projected
                                       ---------     -------------      ------        ---------            ------      ---------
                                           (Note 1)
Cash Receipts
Collection of Accounts           $       4,534                    $      4,534  $        -          $ 55,771,202  $ 56,532,000
Receivable
    Other                                   30,446                          30,446           --            7,528,367     4,635,916
                                     -------------- ---------------  -------------- ---------------     ------------- ------------
    Total Cash Receipts                     34,980                          34,980              0         63,299,569    61,167,916
                                     -------------- ---------------  -------------- ---------------     ------------- ------------
Cash Disbursements

    Total Payroll                             -            39,208           39,208         35,000         22,339,178    22,594,583

    Leased Operators                          -                               -                            4,861,230     4,890,000

    Operating Expenses

        Fuel                                   -                               -             -             4,238,356     5,037,000

        Occupancy costs                     12,522                          12,522         10,000          2,176,032     2,790,600

        Equipment Costs                       -                               -             5,000          2,160,958     2,776,800

        Insurance                           24,392                          24,392         20,000          6,124,405     7,073,800

        Other Operating Expenses            38,913                          38,913         35,000          8,577,233    10,885,998
                                     -------------- ---------------  -------------- ---------------     ------------- ------------
    Total Operating Expenses                75,827                          75,827         70,000         23,276,984    28,564,198

    Deposits with Key Vendors                 -                               -              -                41,148       150,000

    CAPEX - Equipment Refurbishment           -                               -              -                13,050       399,200

    Deferred Rental and Leasing               -                               -              -                97,789     1,448,000
Costs

    Restructuring Costs                      2,354            -              2,354         25,000          7,099,137     9,717,097

    Remittance of Equipment Sales                                                                          6,382,766          -
    Proceeds to Secured Lender            (130,000)                       (130,000)

  Inter - Account Transfer                  39,208        (39,208)                                              -
                                     -------------- ---------------  -------------- ---------------     ------------- ------------
    Total Disbursements                    (12,611)          -             (12,611)       130,000         64,111,282    67,763,078
                                     -------------- ---------------  -------------- ---------------     ------------- ------------
Net Cash Flow/Requirements                  47,591           -              47,591       (130,000)          (811,713)   (6,595,162)

    Opening Cash                            56,378                          56,378     (5,148,162)           915,682     1,317,000
                                     -------------- ---------------  -------------- ---------------     ------------- ------------
   Closing Cash                      $     103,969                   $     103,969  $  (5,278,162)       $   103,969  $ (5,278,162)
                                     ============== ===============  ============== ===============     ============= ============

                     THE FOLLOWING SECTION MUST BE COMPLETED
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES:  (FROM CURRENT MONTH ACTUAL COLUMN)
                                                                           Q1 2001          Q2 2001            Q3 2001      04 2001
                                                                           -------          -------            -------      -------
TOTAL DISBURSEMENTS                                                      $ 150,000     $ 31,512,851       $ 22,023,905   $6,840,682
    LESS:         TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS                     0                0                  0
    PLUS:         ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES
      (i.e. from escrow accounts)                                                0                0                  0

TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES          $ 150,000     $ 31,512,851       $ 22,023,905   $6,840,682
                                                                         =========     ============       ============   ==========

                                                                           Q1 2002          Q2 2002            Q3 2002
                                                                           -------          -------            -------
TOTAL DISBURSEMENTS                                                    $ 3,430,322     $    166,133       $    (12,611)
    LESS:         TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS                     0                0                  0
    PLUS:         ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES
      (i.e. from escrow accounts)                                                0                0

TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES        $ 3,430,322     $    166,133       $    (12,611)
                                                                       ===========     ============       ============
Note 1:   The  Operating  Account  represents  the  aggregate  of the  Company's
          operating  accounts  including  $US & $Cnd  Disbursement  and  Lockbox
          accounts.
In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                 Reporting Period: July 1, 2002 to July 31, 2002

                              BANK RECONCILIATIONS
                          Continuation Sheet for MOR-1
   A bank  reconciliation  must be included for each bank account.  The debtor's
bank reconciliation may be substituted for this page.
Expressed in
                                                                           USD
                                                                       Converted @
                                                                         1:1.1.51
                  ------------------------------------------------------------------------------------------------------
                        1            3           4           Dec            6             9          12
                    Operating                Operating                  Operating        Tax     Matlack
                     (Mellon     Operating     (First     Operating    Bank of Nova  Prefunding     Inc.
                    Lockbox)    (Mellon DE)    Union)       Mellon        Scotia       Mellon     Working
                    #145-2480   #8016-376-9 #200003263225  #0090907     #00820-15     #021-8181    Funds
                     Note 1       Note 3       Note 4    3  Note 5        Note 6       Note 9     Note 10   Grand Total
                  ------------------------------------------------------------------------------------------------------
BALANCE PER BOOKS $   100,130   $     6,411        $ 0    ($ 17,675)     $      0          $ 0       $ 300  $    89,166
------------------------------------------------------------------------------------------------------------------------
BANK BALANCE     $   100,103   $   18,563         $ 0          $ 0           $ 0          $ 0          $0  $   118,666
 (+) DEPOSITS IN          $ 0          $ 0         $ 0          $ 0           $ 0                                   $ 0
 TRANSIT
 (-) OUTSTANDING  ($    2,545) ($   12,152)        $ 0          $ 0           $ 0          $ 0             ($    14,697)
 CHECKS
 OTHER                    $ 0          $ 0         $ 0          $ 0           $ 0                                   $ 0
                  ------------------------------------------------------------------------------------------------------
 ADJUSTED BANK    $    97,558   $    6,411         $ 0          $ 0          $  0          $ 0         $ 0  $   103,969
 BALANCE*
                  ------------------------------------------------------------------------------------------------------
* Adjusted bank                                                                                              (NOTE 11)
  balance must
  equal balance
  per books (see
  Note 11)
 DEPOSITS IN             None         None        None         None          None         None        None
 TRANSIT
 CHECKS                   Yes         None         None        None          None         None        None
 OUTSTANDING

 OTHER
Note 1:   This account is used  primarily  for  collection  of cash  receipts on
          trade  receivables,  to wire funds to trade  suppliers and to fund the
          payroll  accounts,  as well as to receive wire transfers of funds from
          outside parties.
Note 3:   This account is used for cash receipts unrelated to trade receivables.
Note 4:   This account is not active.
Note 5:   This account is used for disbursements to pay trade payables by check.
          The list of  outstanding  checks is  attached  to the  Company's  Bank
          reconciliation.
Note 9:   These accounts are funded by the Mellon lockbox account to pay various
          taxes.
Note 10:  This  represents the aggregate of the terminal  working fund accounts,
          the funding of which are reflected as disbursements in the Schedule of
          Cash Receipts & Disbursements.
In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  July 1, 2002 to July 31, 2002

                             STATEMENT OF OPERATIONS

                               (Income Statement)

The Statement of Operations is to be prepared on an accrual  basis.  The accrual
basis of  accounting  recognizes  revenue when it is realized and expenses  when
they are incurred, regardless of when cash is actually received or paid.
Current                 Cumulative
                                                                     Month                Filing to Date
                                                                     -----                --------------

       REVENUES
Revenue (Net)                                                     $  4,000               $ 40,053,221
                                                           -------------------------- ------------------------
       OPERATING EXPENSES
           Owned Compensation                                                 335                  9,795,960
           Leased Operator Compensation                                         0                  5,017,266
           Fuel Expense                                                         0                  3,002,342
           Misc. Direct Costs                                             (25,160)                 5,478,725
           Cleaning Expenses                                               20,450                  6,193,371
           Mechanics Compensation                                               0                  1,266,834
           Misc. Maintenance Expense                                            0                  2,189,685
           Equipment Costs                                                      0                  7,808,778
           Terminal Expenses                                                5,256                  9,391,893
                                                           -------------------------- ------------------------
                TOTAL OPERATING EXPENSES                                      881                 50,144,854
                                                           -------------------------- ------------------------
       GROSS PROFIT / (LOSS)                                                3,119                (10,091,633)
                                                           -------------------------- ------------------------
       G&A EXPENSES                                                        37,749                 14,373,124
                                                           -------------------------- ------------------------
       OPERATING PROFIT / (LOSS)                                          (34,630)               (24,464,757)

       OTHER INCOME / EXPENSE
           Gain/Loss on Sale of Equipment                                   1,100                 13,734,560
           Other Income/Deductions                                              0                    928,580
                                                           -------------------------- ------------------------
                TOTAL OTHER INCOME/EXPENSES                                 1,100                 14,663,140
                                                           -------------------------- ------------------------
       PROFIT / (LOSS)                                                  ($ 35,730)             ($ 39,127,897)
                                                           -------------------------- ------------------------
In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  July 1, 2002 to July 31, 2002
STATEMENT OF OPERATIONS - continuation sheet

                                                                                                    Cumulative
BREAKDOWN OF "OTHER" CATEGORY                                                    Month              Filing to Date
-----------------------------                                                    -----              --------------
Revenue
Owned Linehaul Revenue                                                            0               20,035,706
   Owned Accessorial Revenue                                                         0                4,477,068
   Leased Linehaul Revenue                                                           0                6,865,934
   Leased Accessorial Revenue                                                        0                  774,372
   Cleaning Revenue                                                                  0                4,970,227
   Other Operating Revenue                                                       4,000                1,619,730
   X-Rail Revenue                                                                    0                  986,185
   Maintenance Revenue                                                               0                  323,999
                                                                  ------------------------ ----------------------
                                                                                 4,000               40,053,221
                                                                  ------------------------ ----------------------
Owned Compensation
   Driver Pay Hourly                                                                 0                3,091,600
   Driver Overtime Pay                                                               0                   34,120
   Contractual Pay Mile                                                              0                3,554,726
   Fringe Benefits                                                                 335                3,115,514
                                                                  ------------------------ ----------------------
                                                                                   335                9,795,960
                                                                  ------------------------ ----------------------
Leased Operator Comp
   Leased Operator Comp                                                              0                4,948,634
   Purchased Transportation                                                          0                   68,632
                                                                  ------------------------ ----------------------
                                                                                     0                5,017,266
                                                                  ------------------------ ----------------------
Fuel Expense
   Fuel Terminal                                                                     0                1,150,105
   Fuel Outside                                                                      0                1,820,865
   Fuel Taxes                                                                        0                    3,904
   Oil and Oil Tax                                                                   0                   27,468
                                                                  ------------------------ ----------------------
                                                                                     0                3,002,342
                                                                  ------------------------ ----------------------
Misc Direct Costs
   Utility Pay Hourly                                                                0                  203,219
   Utility Fringe Benefits                                                           0                    7,902
   Tire                                                                              0                2,202,439
   Hose                                                                              0                  151,023
   Meals                                                                             0                  218,725
   Lay Over                                                                          0                  611,616
   Tolls                                                                             0                  165,110
   Fines                                                                             0                   14,452
   Mileage Taxes                                                               (25,160)                  87,334
   Insurance                                                                         0                1,816,905
                                                                  ------------------------ ----------------------
                                                                               (25,160)               5,478,725
                                                                  ------------------------ ----------------------
Cleaning Expenses
   Cleaners Pay                                                                      0                1,040,407
   Overtime Pay                                                                      0                   42,431
   Fringe Benefits                                                                   0                  690,965
   Cleaning Supplies                                                                 0                  476,089
   Waste Treatment                                                                   0                1,039,350
   Outside Contractors                                                               0                  727,755
   Net Cleaning Interbranch                                                          0                   (1,285)
   Environmental                                                                20,450                2,177,659
                                                                  ------------------------ ----------------------
                                                                                20,450                6,193,371
                                                                  ------------------------ ----------------------
Mechanics Compensation
   Mechanics Pay                                                                     0                  772,715
   Overtime Pay                                                                      0                   53,916
   Fringe Benefits                                                                   0                  440,203
   Net Mechanics Interbranch                                                         0                        0
                                                                  ------------------------ ----------------------
                                                                                     0                1,266,834
                                                                  ------------------------ ----------------------
In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  July 1, 2002 to July 31, 2002

                  STATEMENT OF OPERATIONS - continuation sheet
Cumulative
BREAKDOWN OF "OTHER" CATEGORY                                                    Month              Filing to Date
-----------------------------                                                    -----              --------------
Misc Maintenance Expense
Parts Expense                                                                     0                1,213,644
   Outside Repairs                                                                   0                  752,782
   Tire Repair                                                                       0                   89,458
   Shop Expense                                                                      0                  133,801
                                                                  ------------------------ ----------------------
                                                                                     0                2,189,685
                                                                  ------------------------ ----------------------
Equipment Costs
   Tractor Depreciation                                                              0                   59,706
   Tractor Rent                                                                      0                2,541,450
   Trailer Depreciation                                                              0                1,044,877
   Trailer Rent                                                                      0                  102,087
   License                                                                           0                  952,435
   Permit                                                                            0                   96,312
   Interest                                                                          0                3,011,911
                                                                  ------------------------ ----------------------
                                                                                     0                7,808,778
                                                                  ------------------------ ----------------------
Terminal Expenses
   Terminal Salary & Fringe                                                      1,446                3,696,862
   Utilities                                                                     5,287                  982,250
   Communication Equipment                                                           0                  102,886
   Communication Usage                                                               0                  715,209
   Facility Maintenance                                                              0                  290,991
   Facility Occupancy                                                                0                1,497,188
   Transportation General                                                       (1,477)               2,106,507
                                                                  ------------------------ ----------------------
                                                                                 5,256                9,391,893
                                                                  ------------------------ ----------------------
G&A Expenses
   Salaries Expense                                                             24,614                6,069,370
   Fringe Benefits                                                                   0                  (79,434)
   Communications Basic                                                              0                   75,154
   Communication Services                                                            0                    7,732
   Facilities - Rents                                                            6,747                  329,809
   General Office Supplies                                                          59                   45,549
   IBM Supplies                                                                      0                    4,147
   Conventions & Seminars                                                            0                   14,322
   Postage                                                                           0                   81,962
   Travel & Other                                                                  991                  191,873
   Outside Services                                                                842                5,024,113
   Computer Software                                                                 0                   36,225
   General & Admin                                                               3,612                  205,626
   Marketing Promotions                                                              0                    7,010
   Legal                                                                           360                  328,003
   Insurance                                                                         0                  288,363
   Dues & Contributions                                                              0                      361
   Depreciation                                                                      0                  118,339
   Depreciation - Leasehold                                                          0                   40,740
   Computer Equipment Rent                                                         524                  363,769
   Other Expense/Terminal Exp.                                                       0                1,220,091
                                                                  ------------------------ ----------------------
                                                                                37,749               14,373,124
                                                                  ------------------------ ----------------------
In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  July 1, 2002 to July 31, 2002

                                  BALANCE SHEET

          The  Balance  Sheet  is to be  completed  on an  accrual  basis  only.
Pre-petition   liabilities  must  be  classified  separately  from  postpetition
obligations.
BOOK VALUE AT END OF               BOOK VALUE ON
ASSETS                                                   CURRENT REPORTING MONTH              PETITION DATE

CURRENT ASSETS
Cash                                                           $      89,166                      $    389,571
   Restricted Cash                                                            0
   Accounts Receivable (Net)                                              4,000                        18,045,306
   Inventories                                                                0                         3,639,142
   Prepaid Expenses                                                     390,000                         2,108,548
                                                     --------------------------------- -----------------------------
         TOTAL CURRENT ASSETS                                           483,166                        24,182,567
                                                     --------------------------------- -----------------------------
PROPERTY AND EQUIPMENT
   Revenue Equipment - Cost                                                   0                        98,199,269
   Less:  Accumulated Depreciation (Revenue)                                  0                       (75,767,277)
   Other Property & Equipment - Cost                                  2,020,041                        72,633,319
   Less:  Accumulated Depreciation (Other)                           (1,330,730)                      (41,326,073)
                                                     --------------------------------- -----------------------------
         TOTAL PROPERTY & EQUIPMENT                                     689,311                        53,739,238
                                                     --------------------------------- -----------------------------
OTHER ASSETS
   Goodwill                                                                   0                           744,016
   Other Assets                                                               0                           937,839
                                                     --------------------------------- -----------------------------
         TOTAL OTHER ASSETS                                                   0                         1,681,855
                                                     --------------------------------- -----------------------------

TOTAL ASSETS                                                       $  1,172,477                     $  79,603,660
                                                     --------------------------------- -----------------------------

                                                           BOOK VALUE AT END OF               BOOK VALUE ON
LIABILITIES AND OWNER EQUITY                             CURRENT REPORTING MONTH              PETITION DATE
LIABILITIES NOT SUBJECT TO COMPROMISE
(Postpetition)
   Accounts Payable                                                   1,251,951
   Accrued Wages & Benefits                                             336,248
   Accrued Interest                                                   3,011,910
   Accrued Professional Fees (Note 1)                                   223,225
   Accrued Taxes (refer to FORM MOR-4)                                  214,370
   Accrued Insurance, Environmental & Other                            (935,976)
   Amounts Due to Insiders (Note 1)
                                                     --------------------------------- -----------------------------
         TOTAL POSTPETITION LIABILITIES                               4,101,728                                 0
                                                     --------------------------------- -----------------------------
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
   Secured Debt                                                      48,234,256                        48,234,256
   Remittance of Sale Proceeds to Secured Lenders                   (37,374,952)
   Priority Debt                                                      2,272,119                         9,330,355
   Unsecured Debt                                                    32,153,819                        33,125,644
                                                     --------------------------------- -----------------------------
         TOTAL PRE-PETITION LIABILITIES                              45,285,241                        90,690,255
                                                     --------------------------------- -----------------------------
                                                     --------------------------------- -----------------------------
   TOTAL LIABILITIES                                                 49,386,969                        90,690,255
                                                     --------------------------------- -----------------------------
OWNER EQUITY
   Capital Stock                                                      8,814,434                         8,814,434
   Capital Surplus                                                   10,619,341                        10,619,341
   Retained Earnings - Pre-Petition                                 (28,520,370)                      (28,520,370)
   Retained Earnings - Post-Petition                                (39,127,897)
   Post-Petition Contributions (Distributions) (Draws)
(attach schedule)
                                                     -------------------------------- ------------------------------
   NET OWNER EQUITY                                                 (48,214,492)                       (9,086,595)
                                                     -------------------------------- ------------------------------

TOTAL LIABILITIES AND OWNERS' EQUITY                                 $1,172,477                       $81,603,660
                                                     -------------------------------- ------------------------------
Note 1:   Amounts due to insiders are included in Accounts  Payables and Accrued
          Wages.
In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  July 1, 2002 to July 31, 2002

                          STATUS OF POSTPETITION TAXES

          The beginning tax liability  should be the ending  liability  from the
prior month or, if this is the first report,  the amount should be zero.  Attach
photocopies of IRS Form 6123 or payment  receipt to verify payment or deposit of
federal  payroll taxes.  Attach  photocopies of any tax returns filed during the
reporting period.
Beginning     Amount                                               Ending
                                            Tax       Withheld      Amount        Date       Check No.        Tax
                                         Liability   or Accrued      Paid         Paid         or EFT      Liability
                                         ---------   ----------      ----         ----         ------      ---------
Federal
Withholding                                     0        4,773        4,773      Various        EFT               0
FICA - Employee                                 0        1,103        1,103      Various        EFT               0
FICA - Employer                                 0        1,103        1,103      Various        EFT               0
Unemployment                                    0            0            0                                       0
Other                                           0            0            0                                       0
                                        ------------ ------------ ------------ ------------ ------------- ------------
    Total Federal Taxes                         0        6,979        6,979                                       0
                                        ------------ ------------ ------------ ------------ ------------- ------------
State and Local
Withholding                                 3,773        1,395        3,773                                   1,395
Sales                                      72,596            0            0                                  72,596
Income                                          0            0            0                                       0
Unemployment                                    0            0            0                                       0
Real & Personal Property                  125,195            0            0                                 125,195
Other                                     390,771            0            0                                 390,771
                                        ------------ ------------ ------------ ------------ ------------- ------------
    Total State and Local                 611,074        1,395        3,773                                 589,957
                                        ------------ ------------ ------------ ------------ ------------- ------------
Total Taxes                               611,821        8,374       10,752                                 589,957
                                        ------------ ------------ ------------ ------------ ------------- ------------
SUMMARY OF UNPAID POSTPETITION DEBITS

Attach aged listing of accounts payable.
Number of Days Past Due
                                          Current       0-30         31-60        61-90       Over 90        Total
                                          -------       ----         -----        -----       -------        -----
Accounts Payable                                     1,251,951            0                               1,251,951
Accrued Wages & Benefits                               336,248                                              336,248
Accrued Interest                                     3,011,910                                            3,011,910
Accrued Professional Fees                              223,225                                              223,225
Accrued Taxes (refer to FORM MOR-4)                    214,370                                              214,370
Accrued Insurance, Environmental &                    (935,976)                                            (935,976)
Other
                                        ------------ ------------ ------------ ------------ ------------- ------------
Total Post-Petition Debts                            4,101,728            0            0            0     4,101,728
                                        ------------ ------------ ------------ ------------ ------------- ------------
Explain how and when the Debtor intends to pay any past-due post-petition debts.
In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  July 1, 2002 to July 31, 2002
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

 Accounts Receivable Reconciliation                                                 Amount
 ----------------------------------                                                 ------
Total Accounts Receivable at the beginning of the reporting period                 $    4,000
 + Amounts billed during the period                                                      4,000    (Note 1)
 - Amounts collected during the period                                                  (4,000)
 - Bad Debt and other write-offs                                                             0
 + Change in Reserve                                                                         0
 - Other during the period                                                                   0
 Total Accounts Receivable at the end of the reporting period                       $    4,000

 Accounts Receivable Aging                                                          Amount
 -------------------------                                                          ------
 0 - 30 days old                                                                         4,000
 31 - 60 days old                                                                            0
 61 - 90 days old                                                                            0
 91 + days old                                                                               0
                                                                                         4,000
 Foreign exchange, Revenue Recognition, Sales Accrual Adjustments &
 Write-offs                                                                                  0
 Amount considered uncollectible (Bad Debt)                                                  0
 Accounts Receivable (Net)                                                          $    4,000

                              DEBTOR QUESTIONNAIRE

 Must be completed each month                                                Yes               No
 ----------------------------                                                ---               --
 1.   Have any assets been sold or transferred outside the normal course                        X
      of business this reporting period?  If yes, provide an explanation
      below.
 2    Have any funds been disbursed from any account other than a debtor                        X
      in possession account this reporting period?  If yes, provide an
      explanation below.
 3.   Have all postpetition tax returns been timely filed?  If no,             X
      provide an explanation below.
 4.   Are workers compensation, general liability and other necessary          X
      insurance coverages in effect?  If no, provide an explanation below.