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):             April 16, 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) 426-2700
                                                               -----------------

                                       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 January 1, 2002
to  January  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(k)     Monthly Operating Report for the period from January 1, 2002
                    to January 31, 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:   April 30, 2002                   By: /s/ Stephen E. Judge
                                              ----------------------------------
                                              Stephen E. Judge
                                              Chief Reorganization Officer




<PAGE>


                                  EXHIBIT INDEX


Exhibit No.                             Description
-----------                             -----------

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




<PAGE>

Exhibit 99(k)
                         UNITED STATES BANKRUPTCY COURT
                              DISTRICT OF DELAWARE


In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  Jan. 1, 2002 to Jan. 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                                                           No            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                             April 11, 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:    Aged accounts receivable listing available upon request.



<PAGE>



In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  Jan. 1, 2002 to Jan. 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 Jan. 1, 2002 to Jan.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 Receivable $     9,066                      $      9,066      $       -       $ 55,712,860  $ 56,532,000
    Other                                 575,180                           575,180        670,000          6,584,212     3,565,916
                                    -------------- ---------------    -------------- ---------------     ------------- -------------
    Total Cash Receipts                   584,246                           584,246        670,000         62,297,072    60,097,916
                                    -------------- ---------------    -------------- ---------------     ------------- -------------

Cash Disbursements

    Total Payroll                               -         92,746             92,746         92,933         22,116,329    22,375,823

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

    Operating Expenses

        Fuel                                    -                                 -              -          4,247,114     5,037,000

        Occupancy costs                   115,861                           115,861        116,000          1,986,775     2,388,100

        Equipment Costs                     3,386                             3,386         20,000          2,137,644     2,716,800

        Insurance                          93,113                            93,113         75,000          6,035,725     6,818,800

        Other Operating Expenses           23,643                            23,643         75,000          8,431,657    10,725,998
                                    -------------- ---------------    -------------- ---------------     ------------- -------------

    Total Operating Expenses              236,003                           236,003        286,000         22,838,915    27,686,698

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

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

    Deferred Rental and Leasing                 -                              -                 -             63,789     1,414,000
Costs

    Restructuring Costs                   173,787      1,565,462          1,739,249      1,594,067          6,172,391     9,236,597

    Remittance of Equipment Sales            -                                 -                            6,488,584          -
    Proceeds to Secured Lender

  Inter - Account Transfer              1,658,208     (1,658,208)                                                -

                                    -------------- ---------------    -------------- ---------------     ------------- -------------
    Total Disbursements                 2,067,998           -             2,067,998      1,973,000         62,595,436    66,152,318
                                    -------------- ---------------    -------------- ---------------     ------------- -------------

Net Cash Flow/Requirements             (1,483,752)          -            (1,483,752)    (1,303,000)          (298,364)   (6,054,402)

    Opening Cash                        2,101,070                         2,101,070     (3,434,402)           915,682     1,317,000
                                    -------------- ---------------    -------------- ---------------     ------------- -------------

   Closing Cash                     $     617,318                     $     617,318  $  (4,737,402)      $    617,318  $ (4,737,402)
                                    ============== ===============    ============== ===============     ============= =============
</TABLE>
<TABLE>
<CAPTION>

                     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
                                                                           -------          -------           -------      -------
<S>                                                                      <C>           <C>               <C>            <C>
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 2001
                                                                           -------
TOTAL DISBURSEMENTS                                                    $ 2,067,998
    LESS:         TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS                     0
    PLUS:         ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES
      (i.e. from escrow accounts)                                                0
                                                                       -----------
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES        $ 2,067,998
                                                                       ===========
</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: Jan. 1, 2002 to Jan. 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
                                Expressed in USD                                            USD
                             Converted @ Converted @
                                     1:1.51                                               1:1.1.51
                  -----------------------------------------------------------------------------------
                        1              2              3           4            5             6
                    Operating      Operating                  Operating                  Operating
                     (Mellon     (Mellon Canada   Operating     (First     Operating   (Bank of Nova
                    Lockbox)        Lockbox)     (Mellon DE)    Union)      (Mellon)      Scotia)
                    #145-2480      #01-600052    #8016-376-9 #200003263225  #0090907     #00820-15
                     Note 1          Note 2        Note 3       Note 4    3  Note 5        Note 6
                  -----------------------------------------------------------------------------------
<S>               <C>               <C>           <C>          <C>        <C>             <C>
BALANCE PER BOOKS   $ 697,431       $  1,735      $ 151,346    $ 10,891   ($ 273,740)     $  2,999
-----------------------------------------------------------------------------------------------------

 BANK BALANCE       $ 697,431       $  1,736      $ 151,346    $ 10,891    $       0      $  7,043
 (+) DEPOSITS IN    $       0       $      0      $       0    $      0    $       0      $      0
 TRANSIT
 (-) OUTSTANDING   ($ 247,085)      $      0      $       0    $      0    $       0     ($  4,044)
 CHECKS
 OTHER              $       0       $      0      $       0    $      0    $       0      $      0
                  -----------------------------------------------------------------------------------
 ADJUSTED BANK      $ 450,346       $  1,736      $ 151,346    $ 10,891    $       0      $  2,999
 BALANCE*
                  -----------------------------------------------------------------------------------
* Adjusted bank
  balance must
  equal balance
  per books (see
  Note 11)
 DEPOSITS IN            None           None           None        None          None          None
 TRANSIT
 CHECKS                  Yes           None           None        None          None           Yes
 OUTSTANDING

 OTHER



-----------------------------------------------------------------------------------
      7          8           9          10          11         12
                            Tax         Tax     Tax          Matlack
   Payroll    Payroll   Prefunding  Prefunding  Prefunding    Inc.
  (Mellon)    (Mellon)    Mellon      Mellon      Mellon     Working
  #119-8127  #021-8376   #021-8181   #021-8309  #021-8931     Funds
   Note 7      Note 8     Note 9      Note 9      Note 9     Note 10   Grand Total
-----------------------------------------------------------------------------------
  $ 29,084         $ 0        $ 0         $ 0         $ 0      $ 300   $   620,046
-----------------------------------------------------------------------------------

  $ 29,084         $ 0        $ 0                     $ 0         $0   $   897,531
                                                                       $         0

 ($ 29,084)        $ 0        $ 0                                     ($   280,213)

                                                                       $         0
-----------------------------------------------------------------------------------
  $      0         $ 0        $ 0         $ 0         $ 0        $ 0   $   617,318

-----------------------------------------------------------------------------------
                                                                        (NOTE 11)




      None        None       None        None        None       None

       ALL         ALL       None        None        None       None
</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 2:   This account is used  primarily  for  collection  of cash  receipts on
          Canadian  trade  receivables.  Proceeds  received in this  account are
          transferred on a regular basis to the Bank of Nova Scotia account.
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 6:   This account is used for $Cnd  disbursements to pay trade payables and
          salaries by check.  The list of outstanding  checks is attached to the
          Company's Bank reconciliation.
Note 7:   This account is the payroll  check  disbursement  account.  A detailed
          listing of  outstanding  checks  cannot be  provided  to  respect  the
          confidentiality of the payees.
Note 8:   This account is used to pay salaries by direct deposit.
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.
Note 11:  The  Adjusted  Bank  Balance   represents  the  Bank  balance  net  of
          Post-Petition  checks in circulation.  The Balance per Book represents
          the bank  balance net of Pre- &  Post-Petition  checks in  circulation
          (Pre-Petition  checks have not yet been  voided.)
The Balance per Book  represents  the Bank  balance net of Pre- &  Post-Petition
checks in circulation (Pre-Petition checks have not yet been voided).

<PAGE>


In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  Jan. 1, 2002 to Jan. 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)                                                     $  7,798               $ 40,021,124
                                                           ========================== ========================
       OPERATING EXPENSES
           Owned Compensation                                                   0                  9,795,564
           Leased Operator Compensation                                         0                  5,000,307
           Fuel Expense                                                         0                  3,011,100
           Misc. Direct Costs                                                   0                  5,503,885
           Cleaning Expenses                                               37,451                  4,122,492
           Mechanics Compensation                                               0                  1,266,834
           Misc. Maintenance Expense                                       (5,528)                 2,188,516
           Equipment Costs                                                      0                  7,808,778
           Terminal Expenses                                               16,837                  9,191,529
                                                           -------------------------- ------------------------
                TOTAL OPERATING EXPENSES                                   48,760                 47,889,005
                                                           -------------------------- ------------------------
       GROSS PROFIT / (LOSS)                                              (40,962)                (7,867,881)
                                                           ========================== ========================
       G&A EXPENSES                                                     1,380,783                 13,272,294
                                                           -------------------------- ------------------------
       OPERATING PROFIT / (LOSS)                                       (1,421,745)               (21,140,175)

       OTHER INCOME / EXPENSE
           Gain/Loss on Sale of Equipment                                 226,169                 15,575,540
           Other Income/Deductions                                              0                    528,580
                                                           -------------------------- ------------------------
                TOTAL OTHER INCOME/EXPENSES                               226,169                 16,104,120
                                                           -------------------------- ------------------------
       PROFIT / (LOSS)                                               ($ 1,647,914)             ($ 37,244,295)
                                                           ========================== ========================
</TABLE>




<PAGE>


In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  Jan. 1, 2002 to Jan. 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                                                       7,798                1,587,633
   X-Rail Revenue                                                                    0                  986,185
   Maintenance Revenue                                                               0                  323,999
                                                                  ------------------------ ----------------------
                                                                                 7,798               40,021,124
                                                                  ------------------------ ----------------------
Owned Compensation
   Driver Pay Hourly                                                                 0                3,091,600
   Driver Overtime Pay                                                               0                   34,120
   Contractual Pay Mile                                                              0                3,554,726
   Fringe Benefits                                                                   0                3,115,118
                                                                  ------------------------ ----------------------
                                                                                     0                9,795,564
                                                                  ------------------------ ----------------------
Leased Operator Comp
   Leased Operator Comp                                                              0                4,948,634
   Purchased Transportation                                                          0                   51,673
                                                                  ------------------------ ----------------------
                                                                                     0                5,000,307
                                                                  ------------------------ ----------------------
Fuel Expense
   Fuel Terminal                                                                     0                1,150,105
   Fuel Outside                                                                      0                1,829,623
   Fuel Taxes                                                                        0                    3,904
   Oil and Oil Tax                                                                   0                   27,468
                                                                  ------------------------ ----------------------
                                                                                     0                3,011,100
                                                                  ------------------------ ----------------------
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                                                                     0                  112,494
   Insurance                                                                         0                1,816,905
                                                                  ------------------------ ----------------------
                                                                                     0                5,503,885
                                                                  ------------------------ ----------------------
Cleaning Expenses
   Cleaners Pay                                                                  1,492                1,040,407
   Overtime Pay                                                                      0                   42,431
   Fringe Benefits                                                                   0                  690,965
   Cleaning Supplies                                                                 0                  476,089
   Waste Treatment                                                                 346                1,023,932
   Outside Contractors                                                           7,563                  721,296
   Net Cleaning Interbranch                                                          0                   (1,285)
   Environmental                                                                28,050                  128,657
                                                                  ------------------------ ----------------------
                                                                                37,451                4,122,492
                                                                  ------------------------ ----------------------
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:  Jan. 1, 2002 to Jan. 31, 2002
<TABLE>
<CAPTION>

                  STATEMENT OF OPERATIONS - continuation sheet

                                                                                                    Cumulative
BREAKDOWN OF "OTHER" CATEGORY                                                    Month              Filing to Date
-----------------------------                                                    -----              --------------
Misc Maintenance Expense
<S>                                                                             <C>                   <C>
   Parts Expense                                                                (5,528)               1,212,475
   Outside Repairs                                                                   0                  752,782
   Tire Repair                                                                       0                   89,458
   Shop Expense                                                                      0                  133,801
                                                                  ------------------------ ----------------------
                                                                                (5,528)               2,188,516
                                                                  ------------------------ ----------------------
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                                                          0                3,695,416
   Utilities                                                                     6,320                  954,653
   Communication Equipment                                                       1,062                  102,886
   Communication Usage                                                             567                  716,085
   Facility Maintenance                                                              0                  290,991
   Facility Occupancy                                                                0                1,395,862
   Transportation General                                                        8,888                2,035,636
                                                                  ------------------------ ----------------------
                                                                                16,837                9,191,529
                                                                  ------------------------ ----------------------
G&A Expenses
   Salaries Expense                                                          1,291,295                5,424,548
   Fringe Benefits                                                                  13                  464,045
   Communications Basic                                                              0                   74,956
   Communication Services                                                            0                    7,732
   Facilities - Rents                                                           12,470                  307,325
   General Office Supplies                                                        (383)                  32,516
   IBM Supplies                                                                      0                    4,147
   Conventions & Seminars                                                            0                   14,322
   Postage                                                                           0                   81,962
   Travel & Other                                                                5,885                  179,632
   Outside Services                                                             56,746                4,097,622
   Computer Software                                                                 0                   36,225
   General & Admin                                                               1,186                  197,602
   Marketing Promotions                                                              0                    7,010
   Legal                                                                         9,255                  319,978
   Insurance                                                                         0                  288,363
   Dues & Contributions                                                              0                      361
   Depreciation                                                                      0                  118,339
   Depreciation - Leasehold                                                          0                   40,740
   Computer Equipment Rent                                                       4,316                  354,778
   Other Expense/Terminal Exp.                                                       0                1,220,091
                                                                  ------------------------ ----------------------
                                                                             1,380,783               13,272,294
                                                                  ------------------------ ----------------------
</TABLE>



<PAGE>


In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  Jan. 1, 2002 to Jan. 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                                                           $     620,046                      $    389,571
   Restricted Cash                                                   35,118,745
   Accounts Receivable (Net)                                              4,000                        18,045,306
   Inventories                                                                0                         3,639,142
   Prepaid Expenses                                                     406,464                         2,108,548
                                                     --------------------------------- -----------------------------
         TOTAL CURRENT ASSETS                                        36,149,255                        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                                  4,911,053                        72,633,319
   Less:  Accumulated Depreciation (Other)                           (2,390,153)                      (41,326,073)
                                                     --------------------------------- -----------------------------
         TOTAL PROPERTY & EQUIPMENT                                   2,520,900                        53,739,238
                                                     --------------------------------- -----------------------------
OTHER ASSETS
   Goodwill                                                                   0                           744,016
   Other Assets                                                         400,000                           937,839
                                                     --------------------------------- -----------------------------
         TOTAL OTHER ASSETS                                             400,000                         1,681,855
                                                     --------------------------------- -----------------------------

TOTAL ASSETS                                                      $  39,070,155                     $  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                                                   1,269,510
   Accrued Wages & Benefits                                             425,408
   Accrued Interest                                                   3,011,910
   Accrued Professional Fees (Note 1)                                   767,085
   Accrued Taxes (refer to FORM MOR-4)                                  218,802
   Accrued Insurance, Environmental & Other                            (953,458)
   Amounts Due to Insiders (Note 1)
                                                     --------------------------------- -----------------------------
         TOTAL POSTPETITION LIABILITIES                               4,739,257                                 0
                                                     --------------------------------- -----------------------------
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
   Secured Debt                                                      46,234,256                        46,234,256
   Priority Debt                                                      2,273,714                         9,330,355
   Unsecured Debt                                                    32,153,819                        33,125,644
                                                     --------------------------------- -----------------------------
         TOTAL PRE-PETITION LIABILITIES                              80,661,788                        88,690,255
                                                     --------------------------------- -----------------------------

                                                     --------------------------------- -----------------------------
   TOTAL LIABILITIES                                                 85,401,045                        88,690,255
                                                     ================================= =============================
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                                (37,244,295)
   Post-Petition Contributions (Distributions) (Draws)
(attach schedule)
                                                     -------------------------------- ------------------------------
   NET OWNER EQUITY                                                 (46,330,890)                       (9,086,595)
                                                     ================================= =============================

TOTAL LIABILITIES AND OWNERS' EQUITY                                $39,070,155                       $79,603,660
                                                     ================================= =============================
</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:  Jan. 1, 2002 to Jan. 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                                21,312      439,234      398,182      Various        EFT          62,364
FICA - Employee                                 0       36,234       30,993      Various        EFT           5,241
FICA - Employer                                 0       36,234       30,993      Various        EFT           5,241
Unemployment                                    0          247            0                                     247
Other                                           0            0            0                                       0
                                        ------------ ------------ ------------ ------------ ------------- ------------
    Total Federal Taxes                    21,312      511,949      460,168                                  73,093
                                        ------------ ------------ ------------ ------------ ------------- ------------
State and Local
Withholding                                17,186       36,401       45,410      Various        EFT           8,177
Sales                                      72,596            0            0      Various                     72,596
Income                                          0            0            0                                       0
Unemployment                                    0          949            0                                     949
Real & Personal Property                  151,385            0       14,455      Various                    136,930
Other                                     390,771            0            0      Various                    390,771

                                        ------------ ------------ ------------ ------------ ------------- ------------
    Total State and Local                 631,938       37,350       59,865                                 609,423
                                        ------------ ------------ ------------ ------------ ------------- ------------
Total Taxes                               653,250      549,299      520,033                                 682,516
                                        ============ ============ ============ ============ ============= ============
</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                                     1,269,510            0                               1,269,510
Accrued Wages & Benefits                               425,408                                              425,408
Accrued Interest                                     3,011,910                                            3,011,910
Accrued Professional Fees                              767,085                                              767,085
Accrued Taxes (refer to FORM MOR-4)                    218,802                                              218,802
Accrued Insurance, Environmental &                    (953,458)                                            (953,458)
Other
                                        ------------ ------------ ------------ ------------ ------------- ------------
Total Post-Petition Debts                            4,739,257            0            0            0     4,739,257
                                        ============ ============ ============ ============ ============= ============
</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:  Jan. 1, 2002 to Jan. 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                 $          0
 + Amounts billed during the period                                                            0   (Note 1)
 - Amounts collected during the period                                                         0
 - 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                       $          0

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


                              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>



Note 1: This amount differs from the Revenue  reported on MOR-2 due to the sales
        tax and foreign exchange posted to the G/L.
[{"type": "8-K", "sequence": "1", "filename": "matlack8k05-02.txt", "description": "CURRENT REPORT", "secsgml_size_bytes": 53999}]
{"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": "02630687"}, "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):             April 16, 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) 426-2700
                                                               -----------------

                                       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 January 1, 2002
to  January  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(k)     Monthly Operating Report for the period from January 1, 2002
                    to January 31, 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:   April 30, 2002                   By: /s/ Stephen E. Judge
                                              ----------------------------------
                                              Stephen E. Judge
                                              Chief Reorganization Officer
EXHIBIT INDEX

Exhibit No.                             Description
-----------                             -----------

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

In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  Jan. 1, 2002 to Jan. 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                                                           No            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                             April 11, 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:    Aged accounts receivable listing available upon request.
In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  Jan. 1, 2002 to Jan. 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 Jan. 1, 2002 to Jan.31, 2002     Cumulative Since Filing
                                      OPERATING     PAYROLL & TAX        Actual        Projected            Actual      Projected
                                      ---------     -------------        ------        ---------            ------      ---------
                                          (Note 1)
Cash Receipts
Collection of Accounts Receivable $     9,066                      $      9,066      $       -       $ 55,712,860  $ 56,532,000
    Other                                 575,180                           575,180        670,000          6,584,212     3,565,916
                                    -------------- ---------------    -------------- ---------------     ------------- -------------
    Total Cash Receipts                   584,246                           584,246        670,000         62,297,072    60,097,916
                                    -------------- ---------------    -------------- ---------------     ------------- -------------

Cash Disbursements

    Total Payroll                               -         92,746             92,746         92,933         22,116,329    22,375,823

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

    Operating Expenses

        Fuel                                    -                                 -              -          4,247,114     5,037,000

        Occupancy costs                   115,861                           115,861        116,000          1,986,775     2,388,100

        Equipment Costs                     3,386                             3,386         20,000          2,137,644     2,716,800

        Insurance                          93,113                            93,113         75,000          6,035,725     6,818,800

        Other Operating Expenses           23,643                            23,643         75,000          8,431,657    10,725,998
                                    -------------- ---------------    -------------- ---------------     ------------- -------------

    Total Operating Expenses              236,003                           236,003        286,000         22,838,915    27,686,698

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

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

    Deferred Rental and Leasing                 -                              -                 -             63,789     1,414,000
Costs

    Restructuring Costs                   173,787      1,565,462          1,739,249      1,594,067          6,172,391     9,236,597

    Remittance of Equipment Sales            -                                 -                            6,488,584          -
    Proceeds to Secured Lender

  Inter - Account Transfer              1,658,208     (1,658,208)                                                -

                                    -------------- ---------------    -------------- ---------------     ------------- -------------
    Total Disbursements                 2,067,998           -             2,067,998      1,973,000         62,595,436    66,152,318
                                    -------------- ---------------    -------------- ---------------     ------------- -------------

Net Cash Flow/Requirements             (1,483,752)          -            (1,483,752)    (1,303,000)          (298,364)   (6,054,402)

    Opening Cash                        2,101,070                         2,101,070     (3,434,402)           915,682     1,317,000
                                    -------------- ---------------    -------------- ---------------     ------------- -------------

   Closing Cash                     $     617,318                     $     617,318  $  (4,737,402)      $    617,318  $ (4,737,402)
                                    ============== ===============    ============== ===============     ============= =============
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 2001
                                                                           -------
TOTAL DISBURSEMENTS                                                    $ 2,067,998
    LESS:         TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS                     0
    PLUS:         ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES
      (i.e. from escrow accounts)                                                0
                                                                       -----------
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES        $ 2,067,998
                                                                       ===========
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: Jan. 1, 2002 to Jan. 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
                                Expressed in USD                                            USD
                             Converted @ Converted @
                                     1:1.51                                               1:1.1.51
                  -----------------------------------------------------------------------------------
                        1              2              3           4            5             6
                    Operating      Operating                  Operating                  Operating
                     (Mellon     (Mellon Canada   Operating     (First     Operating   (Bank of Nova
                    Lockbox)        Lockbox)     (Mellon DE)    Union)      (Mellon)      Scotia)
                    #145-2480      #01-600052    #8016-376-9 #200003263225  #0090907     #00820-15
                     Note 1          Note 2        Note 3       Note 4    3  Note 5        Note 6
                  -----------------------------------------------------------------------------------
BALANCE PER BOOKS   $ 697,431       $  1,735      $ 151,346    $ 10,891   ($ 273,740)     $  2,999
-----------------------------------------------------------------------------------------------------

 BANK BALANCE       $ 697,431       $  1,736      $ 151,346    $ 10,891    $       0      $  7,043
 (+) DEPOSITS IN    $       0       $      0      $       0    $      0    $       0      $      0
 TRANSIT
 (-) OUTSTANDING   ($ 247,085)      $      0      $       0    $      0    $       0     ($  4,044)
 CHECKS
 OTHER              $       0       $      0      $       0    $      0    $       0      $      0
                  -----------------------------------------------------------------------------------
 ADJUSTED BANK      $ 450,346       $  1,736      $ 151,346    $ 10,891    $       0      $  2,999
 BALANCE*
                  -----------------------------------------------------------------------------------
* Adjusted bank
  balance must
  equal balance
  per books (see
  Note 11)
 DEPOSITS IN            None           None           None        None          None          None
 TRANSIT
 CHECKS                  Yes           None           None        None          None           Yes
 OUTSTANDING

 OTHER

-----------------------------------------------------------------------------------
      7          8           9          10          11         12
                            Tax         Tax     Tax          Matlack
   Payroll    Payroll   Prefunding  Prefunding  Prefunding    Inc.
  (Mellon)    (Mellon)    Mellon      Mellon      Mellon     Working
  #119-8127  #021-8376   #021-8181   #021-8309  #021-8931     Funds
   Note 7      Note 8     Note 9      Note 9      Note 9     Note 10   Grand Total
-----------------------------------------------------------------------------------
  $ 29,084         $ 0        $ 0         $ 0         $ 0      $ 300   $   620,046
-----------------------------------------------------------------------------------

  $ 29,084         $ 0        $ 0                     $ 0         $0   $   897,531
                                                                       $         0

 ($ 29,084)        $ 0        $ 0                                     ($   280,213)

                                                                       $         0
-----------------------------------------------------------------------------------
  $      0         $ 0        $ 0         $ 0         $ 0        $ 0   $   617,318

-----------------------------------------------------------------------------------
                                                                        (NOTE 11)

      None        None       None        None        None       None

       ALL         ALL       None        None        None       None
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 2:   This account is used  primarily  for  collection  of cash  receipts on
          Canadian  trade  receivables.  Proceeds  received in this  account are
          transferred on a regular basis to the Bank of Nova Scotia account.
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 6:   This account is used for $Cnd  disbursements to pay trade payables and
          salaries by check.  The list of outstanding  checks is attached to the
          Company's Bank reconciliation.
Note 7:   This account is the payroll  check  disbursement  account.  A detailed
          listing of  outstanding  checks  cannot be  provided  to  respect  the
          confidentiality of the payees.
Note 8:   This account is used to pay salaries by direct deposit.
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.
Note 11:  The  Adjusted  Bank  Balance   represents  the  Bank  balance  net  of
          Post-Petition  checks in circulation.  The Balance per Book represents
          the bank  balance net of Pre- &  Post-Petition  checks in  circulation
          (Pre-Petition  checks have not yet been  voided.)
The Balance per Book  represents  the Bank  balance net of Pre- &  Post-Petition
checks in circulation (Pre-Petition checks have not yet been voided).
In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  Jan. 1, 2002 to Jan. 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)                                                     $  7,798               $ 40,021,124
                                                           ========================== ========================
       OPERATING EXPENSES
           Owned Compensation                                                   0                  9,795,564
           Leased Operator Compensation                                         0                  5,000,307
           Fuel Expense                                                         0                  3,011,100
           Misc. Direct Costs                                                   0                  5,503,885
           Cleaning Expenses                                               37,451                  4,122,492
           Mechanics Compensation                                               0                  1,266,834
           Misc. Maintenance Expense                                       (5,528)                 2,188,516
           Equipment Costs                                                      0                  7,808,778
           Terminal Expenses                                               16,837                  9,191,529
                                                           -------------------------- ------------------------
                TOTAL OPERATING EXPENSES                                   48,760                 47,889,005
                                                           -------------------------- ------------------------
       GROSS PROFIT / (LOSS)                                              (40,962)                (7,867,881)
                                                           ========================== ========================
       G&A EXPENSES                                                     1,380,783                 13,272,294
                                                           -------------------------- ------------------------
       OPERATING PROFIT / (LOSS)                                       (1,421,745)               (21,140,175)

       OTHER INCOME / EXPENSE
           Gain/Loss on Sale of Equipment                                 226,169                 15,575,540
           Other Income/Deductions                                              0                    528,580
                                                           -------------------------- ------------------------
                TOTAL OTHER INCOME/EXPENSES                               226,169                 16,104,120
                                                           -------------------------- ------------------------
       PROFIT / (LOSS)                                               ($ 1,647,914)             ($ 37,244,295)
                                                           ========================== ========================
In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  Jan. 1, 2002 to Jan. 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                                                       7,798                1,587,633
   X-Rail Revenue                                                                    0                  986,185
   Maintenance Revenue                                                               0                  323,999
                                                                  ------------------------ ----------------------
                                                                                 7,798               40,021,124
                                                                  ------------------------ ----------------------
Owned Compensation
   Driver Pay Hourly                                                                 0                3,091,600
   Driver Overtime Pay                                                               0                   34,120
   Contractual Pay Mile                                                              0                3,554,726
   Fringe Benefits                                                                   0                3,115,118
                                                                  ------------------------ ----------------------
                                                                                     0                9,795,564
                                                                  ------------------------ ----------------------
Leased Operator Comp
   Leased Operator Comp                                                              0                4,948,634
   Purchased Transportation                                                          0                   51,673
                                                                  ------------------------ ----------------------
                                                                                     0                5,000,307
                                                                  ------------------------ ----------------------
Fuel Expense
   Fuel Terminal                                                                     0                1,150,105
   Fuel Outside                                                                      0                1,829,623
   Fuel Taxes                                                                        0                    3,904
   Oil and Oil Tax                                                                   0                   27,468
                                                                  ------------------------ ----------------------
                                                                                     0                3,011,100
                                                                  ------------------------ ----------------------
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                                                                     0                  112,494
   Insurance                                                                         0                1,816,905
                                                                  ------------------------ ----------------------
                                                                                     0                5,503,885
                                                                  ------------------------ ----------------------
Cleaning Expenses
   Cleaners Pay                                                                  1,492                1,040,407
   Overtime Pay                                                                      0                   42,431
   Fringe Benefits                                                                   0                  690,965
   Cleaning Supplies                                                                 0                  476,089
   Waste Treatment                                                                 346                1,023,932
   Outside Contractors                                                           7,563                  721,296
   Net Cleaning Interbranch                                                          0                   (1,285)
   Environmental                                                                28,050                  128,657
                                                                  ------------------------ ----------------------
                                                                                37,451                4,122,492
                                                                  ------------------------ ----------------------
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:  Jan. 1, 2002 to Jan. 31, 2002
STATEMENT OF OPERATIONS - continuation sheet

                                                                                                    Cumulative
BREAKDOWN OF "OTHER" CATEGORY                                                    Month              Filing to Date
-----------------------------                                                    -----              --------------
Misc Maintenance Expense
Parts Expense                                                                (5,528)               1,212,475
   Outside Repairs                                                                   0                  752,782
   Tire Repair                                                                       0                   89,458
   Shop Expense                                                                      0                  133,801
                                                                  ------------------------ ----------------------
                                                                                (5,528)               2,188,516
                                                                  ------------------------ ----------------------
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                                                          0                3,695,416
   Utilities                                                                     6,320                  954,653
   Communication Equipment                                                       1,062                  102,886
   Communication Usage                                                             567                  716,085
   Facility Maintenance                                                              0                  290,991
   Facility Occupancy                                                                0                1,395,862
   Transportation General                                                        8,888                2,035,636
                                                                  ------------------------ ----------------------
                                                                                16,837                9,191,529
                                                                  ------------------------ ----------------------
G&A Expenses
   Salaries Expense                                                          1,291,295                5,424,548
   Fringe Benefits                                                                  13                  464,045
   Communications Basic                                                              0                   74,956
   Communication Services                                                            0                    7,732
   Facilities - Rents                                                           12,470                  307,325
   General Office Supplies                                                        (383)                  32,516
   IBM Supplies                                                                      0                    4,147
   Conventions & Seminars                                                            0                   14,322
   Postage                                                                           0                   81,962
   Travel & Other                                                                5,885                  179,632
   Outside Services                                                             56,746                4,097,622
   Computer Software                                                                 0                   36,225
   General & Admin                                                               1,186                  197,602
   Marketing Promotions                                                              0                    7,010
   Legal                                                                         9,255                  319,978
   Insurance                                                                         0                  288,363
   Dues & Contributions                                                              0                      361
   Depreciation                                                                      0                  118,339
   Depreciation - Leasehold                                                          0                   40,740
   Computer Equipment Rent                                                       4,316                  354,778
   Other Expense/Terminal Exp.                                                       0                1,220,091
                                                                  ------------------------ ----------------------
                                                                             1,380,783               13,272,294
                                                                  ------------------------ ----------------------
In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  Jan. 1, 2002 to Jan. 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                                                           $     620,046                      $    389,571
   Restricted Cash                                                   35,118,745
   Accounts Receivable (Net)                                              4,000                        18,045,306
   Inventories                                                                0                         3,639,142
   Prepaid Expenses                                                     406,464                         2,108,548
                                                     --------------------------------- -----------------------------
         TOTAL CURRENT ASSETS                                        36,149,255                        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                                  4,911,053                        72,633,319
   Less:  Accumulated Depreciation (Other)                           (2,390,153)                      (41,326,073)
                                                     --------------------------------- -----------------------------
         TOTAL PROPERTY & EQUIPMENT                                   2,520,900                        53,739,238
                                                     --------------------------------- -----------------------------
OTHER ASSETS
   Goodwill                                                                   0                           744,016
   Other Assets                                                         400,000                           937,839
                                                     --------------------------------- -----------------------------
         TOTAL OTHER ASSETS                                             400,000                         1,681,855
                                                     --------------------------------- -----------------------------

TOTAL ASSETS                                                      $  39,070,155                     $  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                                                   1,269,510
   Accrued Wages & Benefits                                             425,408
   Accrued Interest                                                   3,011,910
   Accrued Professional Fees (Note 1)                                   767,085
   Accrued Taxes (refer to FORM MOR-4)                                  218,802
   Accrued Insurance, Environmental & Other                            (953,458)
   Amounts Due to Insiders (Note 1)
                                                     --------------------------------- -----------------------------
         TOTAL POSTPETITION LIABILITIES                               4,739,257                                 0
                                                     --------------------------------- -----------------------------
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
   Secured Debt                                                      46,234,256                        46,234,256
   Priority Debt                                                      2,273,714                         9,330,355
   Unsecured Debt                                                    32,153,819                        33,125,644
                                                     --------------------------------- -----------------------------
         TOTAL PRE-PETITION LIABILITIES                              80,661,788                        88,690,255
                                                     --------------------------------- -----------------------------

                                                     --------------------------------- -----------------------------
   TOTAL LIABILITIES                                                 85,401,045                        88,690,255
                                                     ================================= =============================
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                                (37,244,295)
   Post-Petition Contributions (Distributions) (Draws)
(attach schedule)
                                                     -------------------------------- ------------------------------
   NET OWNER EQUITY                                                 (46,330,890)                       (9,086,595)
                                                     ================================= =============================

TOTAL LIABILITIES AND OWNERS' EQUITY                                $39,070,155                       $79,603,660
                                                     ================================= =============================
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:  Jan. 1, 2002 to Jan. 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                                21,312      439,234      398,182      Various        EFT          62,364
FICA - Employee                                 0       36,234       30,993      Various        EFT           5,241
FICA - Employer                                 0       36,234       30,993      Various        EFT           5,241
Unemployment                                    0          247            0                                     247
Other                                           0            0            0                                       0
                                        ------------ ------------ ------------ ------------ ------------- ------------
    Total Federal Taxes                    21,312      511,949      460,168                                  73,093
                                        ------------ ------------ ------------ ------------ ------------- ------------
State and Local
Withholding                                17,186       36,401       45,410      Various        EFT           8,177
Sales                                      72,596            0            0      Various                     72,596
Income                                          0            0            0                                       0
Unemployment                                    0          949            0                                     949
Real & Personal Property                  151,385            0       14,455      Various                    136,930
Other                                     390,771            0            0      Various                    390,771

                                        ------------ ------------ ------------ ------------ ------------- ------------
    Total State and Local                 631,938       37,350       59,865                                 609,423
                                        ------------ ------------ ------------ ------------ ------------- ------------
Total Taxes                               653,250      549,299      520,033                                 682,516
                                        ============ ============ ============ ============ ============= ============
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                                     1,269,510            0                               1,269,510
Accrued Wages & Benefits                               425,408                                              425,408
Accrued Interest                                     3,011,910                                            3,011,910
Accrued Professional Fees                              767,085                                              767,085
Accrued Taxes (refer to FORM MOR-4)                    218,802                                              218,802
Accrued Insurance, Environmental &                    (953,458)                                            (953,458)
Other
                                        ------------ ------------ ------------ ------------ ------------- ------------
Total Post-Petition Debts                            4,739,257            0            0            0     4,739,257
                                        ============ ============ ============ ============ ============= ============
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:  Jan. 1, 2002 to Jan. 31, 2002
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

 Accounts Receivable Reconciliation                                                   Amount
Total Accounts Receivable at the beginning of the reporting period                 $          0
 + Amounts billed during the period                                                            0   (Note 1)
 - Amounts collected during the period                                                         0
 - 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                       $          0

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

                              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.
Note 1: This amount differs from the Revenue  reported on MOR-2 due to the sales
        tax and foreign exchange posted to the G/L.