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):             February 6, 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  November 1, 2001 to
November 30, 2001, 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(i) Monthly  Operating Report for the period from November 1, 2001
                to November 30, 2001.




<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:   February 21, 2002                 By: /s/Stephen E. Judge
                                               ---------------------------------
                                               Stephen E. Judge
                                               Chief Reorganization Officer




<PAGE>


                                  EXHIBIT INDEX

Exhibit No.                 Description

99(i)           Monthly  Operating  Report for the period from November 1, 2001
                to November 30, 2001.




<PAGE>
                         UNITED STATES BANKRUPTCY COURT
                              DISTRICT OF DELAWARE


In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  Nov. 1, 2001 to Nov. 30, 2001


                            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                            February 4, 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:  Nov. 1, 2001 to Nov. 30, 2001

                   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 Nov. 1, 2001 to Nov.30, 2001    Cumulative Since Filing
                                       OPERATING     PAYROLL & TAX        Actual        Projected            Actual      Projected
                                       ---------     -------------        ------        ---------            ------      ---------
                                         (Note 1)
Cash Receipts
<S>                                    <C>                               <C>             <C>              <C>           <C>
    Collection of Accounts             $   102,875                       $   102,875     $   85,000       $ 55,649,426  $ 56,492,000
Receivable
    Other                                1,244,736                         1,244,736      1,090,400          5,911,070     2,687,000
                                     -------------- ---------------    -------------- ---------------     ------------- ------------
    Total Cash Receipts                  1,347,611                         1,347,611      1,175,400         61,560,496    59,179,000
                                     -------------- ---------------    -------------- ---------------     ------------- ------------
                                                                                              -                                -
Cash Disbursements

    Total Payroll                             -           123,882            123,882        133,000         21,971,411    22,190,200

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

    Operating Expenses

        Fuel                               (17,386)                          (17,386)         -              4,247,114     5,037,000

        Occupancy costs                     54,525                            54,525         57,000          1,829,103     2,039,100

        Equipment Costs                     12,695                            12,695         58,000          2,124,626     2,496,800

        Insurance                          129,680                           129,680        178,400          5,769,290     6,593,800

        Other Operating Expenses           (66,401)                          (66,401)          -             8,362,060    10,575,998
                                     -------------- ---------------    -------------- ---------------     ------------- ------------

    Total Operating Expenses               113,113                           113,113        293,400         22,332,193    26,742,698

    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                    609,949         63,798            673,747        642,000          3,706,826     7,078,600

    Remittance of Equipment Sales          101,597                           101,597                         6,488,584         -
    Proceeds to Secured Lender

  Inter - Account Transfer                 187,680       (187,680)                                               -

                                     -------------- ---------------    -------------- ---------------     ------------- ------------
    Total Disbursements                  1,012,339          -              1,012,339      1,068,400         59,478,231    62,864,698
                                     -------------- ---------------    -------------- ---------------     ------------- ------------

Net Cash Flow/Requirements                 335,272          -                335,272        107,000          2,082,265   (3,685,698)

    Opening Cash                         2,662,675                         2,662,675     (2,475,298)           915,682     1,317,000
                                     -------------- ---------------    -------------- ---------------     ------------- ------------

   Closing Cash                      $   2,997,947                     $   2,997,947  $  (2,368,298)      $  2,997,947  $(2,368,698)
                                     ============== ===============    ============== ===============     ============= ============

                     THE FOLLOWING SECTION MUST BE COMPLETED
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES:  (FROM CURRENT MONTH ACTUAL COLUMN)
                                                                           Q1           Q2            Q3              Q4
TOTAL DISBURSEMENTS                                                    $ 150,000   $ 31,512,851  $ 22,023,905    $ 5,791,475
    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    $ 5,791,475
                                                                       ==========  ============  ============    ===========
</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:  Nov. 1, 2001 to Nov. 30, 2001


                              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
                (Mellon    (Mellon Canada     Operating     Operating     Operating    (Bank of Nova
               Lockbox)       Lockbox)       (Mellon DE)  (First Union)   (Mellon)        Scotia)
               #145-2480     #01-600052      #8016-376-9  #2000032632253  #0090907       #00820-15
                Note 1         Note 2          Note 3        Note 4        Note 5         Note 6
              ---------------------------------------------------------------------------------------
<S>           <C>             <C>              <C>            <C>         <C>             <C>
BALANCE PER   $ 2,920,979     $ 21,526         $ 175,932      $ 10,918    ($ 164,836)     $  6,101
BOOKS
-----------------------------------------------------------------------------------------------------
BANK BALANCE  $ 2,920,979     $ 21,136         $ 175,932      $ 10,918           $ 0      $ 42,875
(+) DEPOSITS          $ 0          $ 0               $ 0           $ 0           $ 0           $ 0
IN TRANSIT
(-)
OUTSTANDING    ($ 139,073)         $ 0               $ 0           $ 0           $ 0     ($ 34,821)
CHECKS
OTHER                 $ 0          $ 0               $ 0           $ 0           $ 0           $ 0
              ---------------------------------------------------------------------------------------
ADJUSTED      $ 2,781,906     $ 21,136         $ 175,932      $ 10,918           $ 0       $ 8,054
BANK 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
</TABLE>

--------------------------------------------------------------------------------
     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  #021-81812  #021-8309  #021-8931    Funds
   Note 7     Note 8      Note 9     Note 9      Note 9    Note 10   Grand Total
--------------------------------------------------------------------------------
       $ 0        $ 0         $ 0        $ 0         $ 0   $ 14,434  $ 2,985,054

--------------------------------------------------------------------------------

  $ 93,796   $ 15,933         $ 0                    $ 0         $0  $ 3,281,570
                                                                           $ 0


 ($ 93,796)  ($15,933)        $ 0                                    ($ 283,623)

                                                                           $ 0
--------------------------------------------------------------------------------
       $ 0        $ 0         $ 0        $ 0         $ 0        $ 0  $ 2,997,947

--------------------------------------------------------------------------------
                                                                      (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).

<PAGE>


In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  Nov. 1, 2001 to Nov. 30, 2001


                             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)                                                     $ 83,678               $ 39,962,161
                                                          ========================== ========================
       OPERATING EXPENSES
           Owned Compensation                                                 (20)                 9,792,590
           Leased Operator Compensation                                   (17,216)                 5,000,307
           Fuel Expense                                                    22,411                  3,011,100
           Misc. Direct Costs                                           1,796,811                  5,503,885
           Cleaning Expenses                                             (127,802)                 4,083,737
           Mechanics Compensation                                               0                  1,266,736
           Misc. Maintenance Expense                                      255,271                  2,194,044
           Equipment Costs                                                606,048                  7,808,778
           Terminal Expenses                                              496,280                  9,191,235
                                                          -------------------------- ------------------------
                TOTAL OPERATING EXPENSES                                3,031,783                 47,852,412
                                                          -------------------------- ------------------------

       GROSS PROFIT / (LOSS)                                           (2,948,105)                (7,890,251)
                                                          ========================== ========================

       G&A EXPENSES                                                       187,639                 10,989,583
                                                          -------------------------- ------------------------

       OPERATING PROFIT / (LOSS)                                       (3,135,744)               (18,879,834)

       OTHER INCOME / EXPENSE
           Gain/Loss on Sale of Equipment                              16,654,730                 15,487,277
           Other Income/Deductions                                              0                    528,580
                                                          -------------------------- ------------------------
                TOTAL OTHER INCOME/EXPENSES                            16,654,730                 16,015,857
                                                          -------------------------- ------------------------

       PROFIT / (LOSS)                                              ($ 19,790,474)             ($ 34,895,691)
                                                          ========================== ========================
</TABLE>


<PAGE>


In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  Nov. 1, 2001 to Nov. 30, 2001


                  STATEMENT OF OPERATIONS - continuation sheet

<TABLE>
<CAPTION>
                                                                                                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                                                      83,678                1,528,670
   X-Rail Revenue                                                                    0                  986,185
   Maintenance Revenue                                                               0                  323,999
                                                                  ------------------------ ----------------------
                                                                                83,678               39,962,161
                                                                  ------------------------ ----------------------
Owned Compensation
   Driver Pay Hourly                                                                 0                3,091,600
   Driver Overtime Pay                                                               0                   34,120
   Contractual Pay Mile                                                              0                3,554,726
   Fringe Benefits                                                                 (20)               3,112,144
                                                                  ------------------------ ----------------------
                                                                                   (20)               9,792,590
                                                                  ------------------------ ----------------------
Leased Operator Comp
   Leased Operator Comp                                                          2,481                4,948,634
   Purchased Transportation                                                    (19,697)                  51,673
                                                                  ------------------------ ----------------------
                                                                               (17,216)               5,000,307
                                                                  ------------------------ ----------------------
Fuel Expense
   Fuel Terminal                                                                 8,237                1,150,105
   Fuel Outside                                                                 14,174                1,829,623
   Fuel Taxes                                                                        0                    3,904
   Oil and Oil Tax                                                                   0                   27,468
                                                                  ------------------------ ----------------------
                                                                                22,411                3,011,100
                                                                  ------------------------ ----------------------
Misc Direct Costs
   Utility Pay Hourly                                                                0                  203,219
   Utility Fringe Benefits                                                           0                    7,902
   Tire                                                                      1,801,957                2,202,439
   Hose                                                                         (5,191)                 151,023
   Meals                                                                             0                  218,725
   Lay Over                                                                          0                  611,616
   Tolls                                                                            45                  165,110
   Fines                                                                             0                   14,452
   Mileage Taxes                                                                     0                  112,494
   Insurance                                                                         0                1,816,905
                                                                  ------------------------ ----------------------
                                                                             1,796,811                5,503,885
                                                                  ------------------------ ----------------------
Cleaning Expenses
   Cleaners Pay                                                                      0                1,038,915
   Overtime Pay                                                                      0                   42,431
   Fringe Benefits                                                                   0                  690,659
   Cleaning Supplies                                                          (116,953)                 476,089
   Waste Treatment                                                                   0                1,022,588
   Outside Contractors                                                         (10,849)                 713,733
   Net Cleaning Interbranch                                                          0                   (1,285)
   Environmental                                                                     0                  100,607
                                                                  ------------------------ ----------------------
                                                                              (127,802)               4,083,737
                                                                  ------------------------ ----------------------
Mechanics Compensation
   Mechanics Pay                                                                     0                  772,715
   Overtime Pay                                                                      0                   53,916
   Fringe Benefits                                                                   0                  440,105
   Net Mechanics Interbranch                                                         0                        0
                                                                  ------------------------ ----------------------
                                                                                     0                1,266,736
                                                                  ------------------------ ----------------------
</TABLE>

<PAGE>

In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  Nov. 1, 2001 to Nov. 30, 2001

                  STATEMENT OF OPERATIONS - continuation sheet
<TABLE>
<CAPTION>
                                                                                                Cumulative
BREAKDOWN OF "OTHER" CATEGORY                                              Month              Filing to Date

Misc Maintenance Expense
<S>                                                                            <C>                    <C>
   Parts Expense                                                               259,104                1,218,003
   Outside Repairs                                                              (3,343)                 752,782
   Tire Repair                                                                       0                   89,458
   Shop Expense                                                                   (490)                 133,801
                                                                  ------------------------ ----------------------
                                                                               255,271                2,194,044
                                                                  ------------------------ ----------------------
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                                                                        (311)                 952,435
   Permit                                                                            0                   96,312
   Interest                                                                    606,359                3,011,911
                                                                  ------------------------ ----------------------
                                                                               606,048                7,808,778
                                                                  ------------------------ ----------------------
Terminal Expenses
   Terminal Salary & Fringe                                                    475,700                3,690,637
   Utilities                                                                     5,033                  944,878
   Communication Equipment                                                           0                  101,824
   Communication Usage                                                          (1,100)                 715,533
   Facility Maintenance                                                           (253)                 290,991
   Facility Occupancy                                                           (2,528)               1,395,428
   Transportation General                                                       19,428                2,051,944
                                                                  ------------------------ ----------------------
                                                                               496,280                9,191,235
                                                                  ------------------------ ----------------------
G&A Expenses
   Salaries Expense                                                            145,534                3,916,189
   Fringe Benefits                                                               3,204                  451,734
   Communications Basic                                                              0                   74,956
   Communication Services                                                            0                    7,732
   Facilities - Rents                                                                0                  294,855
   General Office Supplies                                                       4,646                   31,012
   IBM Supplies                                                                      0                    4,147
   Conventions & Seminars                                                            0                   14,322
   Postage                                                                           0                   81,962
   Travel & Other                                                                  377                  173,747
   Outside Services                                                              5,457                3,375,627
   Computer Software                                                                 0                   36,225
   General & Admin                                                                  59                  195,751
   Marketing Promotions                                                              0                    7,010
   Legal                                                                        20,813                  308,865
   Insurance                                                                         0                  288,363
   Dues & Contributions                                                              0                      361
   Depreciation                                                                      0                  118,339
   Depreciation - Leasehold                                                          0                   40,740
   Computer Equipment Rent                                                       7,549                  347,555
   Other Expense/Terminal Exp.                                                       0                1,220,091
                                                                  ------------------------ ----------------------
                                                                               187,639               10,989,583
                                                                  ------------------------ ----------------------
</TABLE>


<PAGE>

In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  Nov. 1, 2001 to Nov. 30, 2001

                                  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                                                             $ 2,985,054                          $389,571
   Restricted Cash                                                   33,703,130
   Accounts Receivable (Net)                                             48,944                        18,045,306
   Inventories                                                                0                         3,639,142
   Prepaid Expenses                                                     340,079                         2,108,548
                                                     --------------------------------- -----------------------------
         TOTAL CURRENT ASSETS                                        37,077,207                        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                                  8,544,024                        72,633,319
   Less:  Accumulated Depreciation (Other)                           (3,897,850)                      (41,326,073)
                                                     --------------------------------- -----------------------------
         TOTAL PROPERTY & EQUIPMENT                                   4,646,174                        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                                                        $42,123,381                       $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                                                   1,417,420
   Accrued Wages & Benefits                                             836,083
   Accrued Interest                                                   3,011,910
   Accrued Professional Fees (Note 1)                                   697,989
   Accrued Taxes (refer to FORM MOR-4)                                  262,725
   Accrued Insurance, Environmental & Other                            (935,977)
   Amounts Due to Insiders (Note 1)
                                                     --------------------------------- -----------------------------
         TOTAL POSTPETITION LIABILITIES                               5,290,150                                 0
                                                     --------------------------------- -----------------------------
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
   Secured Debt                                                      46,234,256                        46,234,256
   Priority Debt                                                      2,427,443                         9,330,355
   Unsecured Debt                                                    32,153,819                        33,125,644
                                                     --------------------------------- -----------------------------
         TOTAL PRE-PETITION LIABILITIES                              80,815,517                        88,690,255
                                                     --------------------------------- -----------------------------
   TOTAL LIABILITIES                                                 86,105,667                        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                                (34,895,691)
   Post-Petition Contributions (Distributions) (Draws)
(attach schedule)
                                                    --------------------------------- -----------------------------
   NET OWNER EQUITY                                                  (43,982,286)                      (9,086,595)
                                                    ================================= =============================
TOTAL LIABILITIES AND OWNERS' EQUITY                                 $42,123,381                      $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:  Nov. 1, 2001 to Nov. 30, 2001



                          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                                -1,511       25,252       23,741      Various        EFT               0
FICA - Employee                               373        9,365        9,738      Various        EFT               0
FICA - Employer                               377        9,365        9,742      Various        EFT               0
Unemployment                               -4,414        4,414          702                                       0
Other                                           0            0            0                                       0
                                        ------------ ------------ ------------ ------------ ------------- ------------
    Total Federal Taxes                    -5,175       48,396       43,221                                       0
                                        ------------ ------------ ------------ ------------ ------------- ------------
State and Local
Withholding                                48,441       24,598       70,531      Various        EFT           2,508
Sales                                      72,596            0            0      Various                     72,596
Income                                          0            0            0                                       0
Unemployment                                    0            0            0                                       0
Real & Personal Property                  215,735            0       64,350      Various                    151,385
Other                                     390,771            0            0      Various                    390,771
                                        ------------ ------------ ------------ ------------ ------------- ------------
    Total State and Local                 727,543       24,598      134,881                                 617,260
                                        ------------ ------------ ------------ ------------ ------------- ------------
Total Taxes                               722,368       72,994      178,102                                 617,260
                                        ============ ============ ============ ============ ============= ============


                      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                                     1,417,420            0                               1,417,420
Accrued Wages & Benefits                               836,083                                              836,083
Accrued Interest                                     3,011,910                                            3,011,910
Accrued Professional Fees                              697,989                                              697,989
Accrued Taxes (refer to FORM MOR-4)                    262,725                                              262,725
Accrued Insurance, Environmental &                    (935,977)                                            (935,977)
Other
                                        ------------ ------------ ------------ ------------ ------------- ------------
Total Post-Petition Debts                            5,290,150            0            0            0     5,290,150
                                        ============ ============ ============ ============ ============= ============
</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:  Nov. 1, 2001 to Nov. 30, 2001
<TABLE>
<CAPTION>
                  ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

 Accounts Receivable Reconciliation                                                    Amount
<S>                                                                                 <C>
 Total Accounts Receivable at the beginning of the reporting period                 $ 149,434
 + Amounts billed during the period                                                         0    (Note 1)
 - Amounts collected during the period                                               (102,875)
 - Bad Debt and other write-offs                                                        2,385
 + Change in Reserve                                                                        0
 - Other during the period                                                          $       0
 Total Accounts Receivable at the end of the reporting period                       $  48,944

 Accounts Receivable Aging                                                             Amount
 0 - 30 days old                                                                            0
 31 - 60 days old                                                                           0
 61 - 90 days old                                                                      13,141
 91 + days old                                                                         90,803
 --                                                                                    ------
                                                                                      103,944
 Foreign exchange, Revenue Recognition, Sales Accrual Adjustments &
 Write-offs                                                                                 0
 Amount considered uncollectible (Bad Debt)                                           (55,000)
                                                                                      -------
 Accounts Receivable (Net)                                                          $  48,944
                                                                                    =========

                              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": "matlack1st8k02-02.txt", "description": "CURRENT REPORT", "secsgml_size_bytes": 52334}]
{"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": "02555297"}, "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):             February 6, 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  November 1, 2001 to
November 30, 2001, 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(i) Monthly  Operating Report for the period from November 1, 2001
                to November 30, 2001.
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:   February 21, 2002                 By: /s/Stephen E. Judge
                                               ---------------------------------
                                               Stephen E. Judge
                                               Chief Reorganization Officer
EXHIBIT INDEX

Exhibit No.                 Description

99(i)           Monthly  Operating  Report for the period from November 1, 2001
                to November 30, 2001.
UNITED STATES BANKRUPTCY COURT
                              DISTRICT OF DELAWARE

In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  Nov. 1, 2001 to Nov. 30, 2001

                            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                            February 4, 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:  Nov. 1, 2001 to Nov. 30, 2001

                   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 Nov. 1, 2001 to Nov.30, 2001    Cumulative Since Filing
                                       OPERATING     PAYROLL & TAX        Actual        Projected            Actual      Projected
                                       ---------     -------------        ------        ---------            ------      ---------
                                         (Note 1)
Cash Receipts
Collection of Accounts             $   102,875                       $   102,875     $   85,000       $ 55,649,426  $ 56,492,000
Receivable
    Other                                1,244,736                         1,244,736      1,090,400          5,911,070     2,687,000
                                     -------------- ---------------    -------------- ---------------     ------------- ------------
    Total Cash Receipts                  1,347,611                         1,347,611      1,175,400         61,560,496    59,179,000
                                     -------------- ---------------    -------------- ---------------     ------------- ------------
                                                                                              -                                -
Cash Disbursements

    Total Payroll                             -           123,882            123,882        133,000         21,971,411    22,190,200

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

    Operating Expenses

        Fuel                               (17,386)                          (17,386)         -              4,247,114     5,037,000

        Occupancy costs                     54,525                            54,525         57,000          1,829,103     2,039,100

        Equipment Costs                     12,695                            12,695         58,000          2,124,626     2,496,800

        Insurance                          129,680                           129,680        178,400          5,769,290     6,593,800

        Other Operating Expenses           (66,401)                          (66,401)          -             8,362,060    10,575,998
                                     -------------- ---------------    -------------- ---------------     ------------- ------------

    Total Operating Expenses               113,113                           113,113        293,400         22,332,193    26,742,698

    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                    609,949         63,798            673,747        642,000          3,706,826     7,078,600

    Remittance of Equipment Sales          101,597                           101,597                         6,488,584         -
    Proceeds to Secured Lender

  Inter - Account Transfer                 187,680       (187,680)                                               -

                                     -------------- ---------------    -------------- ---------------     ------------- ------------
    Total Disbursements                  1,012,339          -              1,012,339      1,068,400         59,478,231    62,864,698
                                     -------------- ---------------    -------------- ---------------     ------------- ------------

Net Cash Flow/Requirements                 335,272          -                335,272        107,000          2,082,265   (3,685,698)

    Opening Cash                         2,662,675                         2,662,675     (2,475,298)           915,682     1,317,000
                                     -------------- ---------------    -------------- ---------------     ------------- ------------

   Closing Cash                      $   2,997,947                     $   2,997,947  $  (2,368,298)      $  2,997,947  $(2,368,698)
                                     ============== ===============    ============== ===============     ============= ============

                     THE FOLLOWING SECTION MUST BE COMPLETED
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES:  (FROM CURRENT MONTH ACTUAL COLUMN)
                                                                           Q1           Q2            Q3              Q4
TOTAL DISBURSEMENTS                                                    $ 150,000   $ 31,512,851  $ 22,023,905    $ 5,791,475
    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    $ 5,791,475
                                                                       ==========  ============  ============    ===========
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:  Nov. 1, 2001 to Nov. 30, 2001

                              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
                (Mellon    (Mellon Canada     Operating     Operating     Operating    (Bank of Nova
               Lockbox)       Lockbox)       (Mellon DE)  (First Union)   (Mellon)        Scotia)
               #145-2480     #01-600052      #8016-376-9  #2000032632253  #0090907       #00820-15
                Note 1         Note 2          Note 3        Note 4        Note 5         Note 6
              ---------------------------------------------------------------------------------------
BALANCE PER   $ 2,920,979     $ 21,526         $ 175,932      $ 10,918    ($ 164,836)     $  6,101
BOOKS
-----------------------------------------------------------------------------------------------------
BANK BALANCE  $ 2,920,979     $ 21,136         $ 175,932      $ 10,918           $ 0      $ 42,875
(+) DEPOSITS          $ 0          $ 0               $ 0           $ 0           $ 0           $ 0
IN TRANSIT
(-)
OUTSTANDING    ($ 139,073)         $ 0               $ 0           $ 0           $ 0     ($ 34,821)
CHECKS
OTHER                 $ 0          $ 0               $ 0           $ 0           $ 0           $ 0
              ---------------------------------------------------------------------------------------
ADJUSTED      $ 2,781,906     $ 21,136         $ 175,932      $ 10,918           $ 0       $ 8,054
BANK 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  #021-81812  #021-8309  #021-8931    Funds
   Note 7     Note 8      Note 9     Note 9      Note 9    Note 10   Grand Total
--------------------------------------------------------------------------------
       $ 0        $ 0         $ 0        $ 0         $ 0   $ 14,434  $ 2,985,054

--------------------------------------------------------------------------------

  $ 93,796   $ 15,933         $ 0                    $ 0         $0  $ 3,281,570
                                                                           $ 0

 ($ 93,796)  ($15,933)        $ 0                                    ($ 283,623)

                                                                           $ 0
--------------------------------------------------------------------------------
       $ 0        $ 0         $ 0        $ 0         $ 0        $ 0  $ 2,997,947

--------------------------------------------------------------------------------
                                                                      (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:  Nov. 1, 2001 to Nov. 30, 2001

                             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)                                                     $ 83,678               $ 39,962,161
                                                          ========================== ========================
       OPERATING EXPENSES
           Owned Compensation                                                 (20)                 9,792,590
           Leased Operator Compensation                                   (17,216)                 5,000,307
           Fuel Expense                                                    22,411                  3,011,100
           Misc. Direct Costs                                           1,796,811                  5,503,885
           Cleaning Expenses                                             (127,802)                 4,083,737
           Mechanics Compensation                                               0                  1,266,736
           Misc. Maintenance Expense                                      255,271                  2,194,044
           Equipment Costs                                                606,048                  7,808,778
           Terminal Expenses                                              496,280                  9,191,235
                                                          -------------------------- ------------------------
                TOTAL OPERATING EXPENSES                                3,031,783                 47,852,412
                                                          -------------------------- ------------------------

       GROSS PROFIT / (LOSS)                                           (2,948,105)                (7,890,251)
                                                          ========================== ========================

       G&A EXPENSES                                                       187,639                 10,989,583
                                                          -------------------------- ------------------------

       OPERATING PROFIT / (LOSS)                                       (3,135,744)               (18,879,834)

       OTHER INCOME / EXPENSE
           Gain/Loss on Sale of Equipment                              16,654,730                 15,487,277
           Other Income/Deductions                                              0                    528,580
                                                          -------------------------- ------------------------
                TOTAL OTHER INCOME/EXPENSES                            16,654,730                 16,015,857
                                                          -------------------------- ------------------------

       PROFIT / (LOSS)                                              ($ 19,790,474)             ($ 34,895,691)
                                                          ========================== ========================
In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  Nov. 1, 2001 to Nov. 30, 2001

                  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                                                      83,678                1,528,670
   X-Rail Revenue                                                                    0                  986,185
   Maintenance Revenue                                                               0                  323,999
                                                                  ------------------------ ----------------------
                                                                                83,678               39,962,161
                                                                  ------------------------ ----------------------
Owned Compensation
   Driver Pay Hourly                                                                 0                3,091,600
   Driver Overtime Pay                                                               0                   34,120
   Contractual Pay Mile                                                              0                3,554,726
   Fringe Benefits                                                                 (20)               3,112,144
                                                                  ------------------------ ----------------------
                                                                                   (20)               9,792,590
                                                                  ------------------------ ----------------------
Leased Operator Comp
   Leased Operator Comp                                                          2,481                4,948,634
   Purchased Transportation                                                    (19,697)                  51,673
                                                                  ------------------------ ----------------------
                                                                               (17,216)               5,000,307
                                                                  ------------------------ ----------------------
Fuel Expense
   Fuel Terminal                                                                 8,237                1,150,105
   Fuel Outside                                                                 14,174                1,829,623
   Fuel Taxes                                                                        0                    3,904
   Oil and Oil Tax                                                                   0                   27,468
                                                                  ------------------------ ----------------------
                                                                                22,411                3,011,100
                                                                  ------------------------ ----------------------
Misc Direct Costs
   Utility Pay Hourly                                                                0                  203,219
   Utility Fringe Benefits                                                           0                    7,902
   Tire                                                                      1,801,957                2,202,439
   Hose                                                                         (5,191)                 151,023
   Meals                                                                             0                  218,725
   Lay Over                                                                          0                  611,616
   Tolls                                                                            45                  165,110
   Fines                                                                             0                   14,452
   Mileage Taxes                                                                     0                  112,494
   Insurance                                                                         0                1,816,905
                                                                  ------------------------ ----------------------
                                                                             1,796,811                5,503,885
                                                                  ------------------------ ----------------------
Cleaning Expenses
   Cleaners Pay                                                                      0                1,038,915
   Overtime Pay                                                                      0                   42,431
   Fringe Benefits                                                                   0                  690,659
   Cleaning Supplies                                                          (116,953)                 476,089
   Waste Treatment                                                                   0                1,022,588
   Outside Contractors                                                         (10,849)                 713,733
   Net Cleaning Interbranch                                                          0                   (1,285)
   Environmental                                                                     0                  100,607
                                                                  ------------------------ ----------------------
                                                                              (127,802)               4,083,737
                                                                  ------------------------ ----------------------
Mechanics Compensation
   Mechanics Pay                                                                     0                  772,715
   Overtime Pay                                                                      0                   53,916
   Fringe Benefits                                                                   0                  440,105
   Net Mechanics Interbranch                                                         0                        0
                                                                  ------------------------ ----------------------
                                                                                     0                1,266,736
                                                                  ------------------------ ----------------------
In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  Nov. 1, 2001 to Nov. 30, 2001

                  STATEMENT OF OPERATIONS - continuation sheet
Cumulative
BREAKDOWN OF "OTHER" CATEGORY                                              Month              Filing to Date

Misc Maintenance Expense
Parts Expense                                                               259,104                1,218,003
   Outside Repairs                                                              (3,343)                 752,782
   Tire Repair                                                                       0                   89,458
   Shop Expense                                                                   (490)                 133,801
                                                                  ------------------------ ----------------------
                                                                               255,271                2,194,044
                                                                  ------------------------ ----------------------
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                                                                        (311)                 952,435
   Permit                                                                            0                   96,312
   Interest                                                                    606,359                3,011,911
                                                                  ------------------------ ----------------------
                                                                               606,048                7,808,778
                                                                  ------------------------ ----------------------
Terminal Expenses
   Terminal Salary & Fringe                                                    475,700                3,690,637
   Utilities                                                                     5,033                  944,878
   Communication Equipment                                                           0                  101,824
   Communication Usage                                                          (1,100)                 715,533
   Facility Maintenance                                                           (253)                 290,991
   Facility Occupancy                                                           (2,528)               1,395,428
   Transportation General                                                       19,428                2,051,944
                                                                  ------------------------ ----------------------
                                                                               496,280                9,191,235
                                                                  ------------------------ ----------------------
G&A Expenses
   Salaries Expense                                                            145,534                3,916,189
   Fringe Benefits                                                               3,204                  451,734
   Communications Basic                                                              0                   74,956
   Communication Services                                                            0                    7,732
   Facilities - Rents                                                                0                  294,855
   General Office Supplies                                                       4,646                   31,012
   IBM Supplies                                                                      0                    4,147
   Conventions & Seminars                                                            0                   14,322
   Postage                                                                           0                   81,962
   Travel & Other                                                                  377                  173,747
   Outside Services                                                              5,457                3,375,627
   Computer Software                                                                 0                   36,225
   General & Admin                                                                  59                  195,751
   Marketing Promotions                                                              0                    7,010
   Legal                                                                        20,813                  308,865
   Insurance                                                                         0                  288,363
   Dues & Contributions                                                              0                      361
   Depreciation                                                                      0                  118,339
   Depreciation - Leasehold                                                          0                   40,740
   Computer Equipment Rent                                                       7,549                  347,555
   Other Expense/Terminal Exp.                                                       0                1,220,091
                                                                  ------------------------ ----------------------
                                                                               187,639               10,989,583
                                                                  ------------------------ ----------------------
In re:  Matlack Systems, Inc., et al.                     Case No. 01-1114 (MFW)
                                Reporting Period:  Nov. 1, 2001 to Nov. 30, 2001

                                  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                                                             $ 2,985,054                          $389,571
   Restricted Cash                                                   33,703,130
   Accounts Receivable (Net)                                             48,944                        18,045,306
   Inventories                                                                0                         3,639,142
   Prepaid Expenses                                                     340,079                         2,108,548
                                                     --------------------------------- -----------------------------
         TOTAL CURRENT ASSETS                                        37,077,207                        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                                  8,544,024                        72,633,319
   Less:  Accumulated Depreciation (Other)                           (3,897,850)                      (41,326,073)
                                                     --------------------------------- -----------------------------
         TOTAL PROPERTY & EQUIPMENT                                   4,646,174                        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                                                        $42,123,381                       $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                                                   1,417,420
   Accrued Wages & Benefits                                             836,083
   Accrued Interest                                                   3,011,910
   Accrued Professional Fees (Note 1)                                   697,989
   Accrued Taxes (refer to FORM MOR-4)                                  262,725
   Accrued Insurance, Environmental & Other                            (935,977)
   Amounts Due to Insiders (Note 1)
                                                     --------------------------------- -----------------------------
         TOTAL POSTPETITION LIABILITIES                               5,290,150                                 0
                                                     --------------------------------- -----------------------------
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
   Secured Debt                                                      46,234,256                        46,234,256
   Priority Debt                                                      2,427,443                         9,330,355
   Unsecured Debt                                                    32,153,819                        33,125,644
                                                     --------------------------------- -----------------------------
         TOTAL PRE-PETITION LIABILITIES                              80,815,517                        88,690,255
                                                     --------------------------------- -----------------------------
   TOTAL LIABILITIES                                                 86,105,667                        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                                (34,895,691)
   Post-Petition Contributions (Distributions) (Draws)
(attach schedule)
                                                    --------------------------------- -----------------------------
   NET OWNER EQUITY                                                  (43,982,286)                      (9,086,595)
                                                    ================================= =============================
TOTAL LIABILITIES AND OWNERS' EQUITY                                 $42,123,381                      $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:  Nov. 1, 2001 to Nov. 30, 2001

                          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                                -1,511       25,252       23,741      Various        EFT               0
FICA - Employee                               373        9,365        9,738      Various        EFT               0
FICA - Employer                               377        9,365        9,742      Various        EFT               0
Unemployment                               -4,414        4,414          702                                       0
Other                                           0            0            0                                       0
                                        ------------ ------------ ------------ ------------ ------------- ------------
    Total Federal Taxes                    -5,175       48,396       43,221                                       0
                                        ------------ ------------ ------------ ------------ ------------- ------------
State and Local
Withholding                                48,441       24,598       70,531      Various        EFT           2,508
Sales                                      72,596            0            0      Various                     72,596
Income                                          0            0            0                                       0
Unemployment                                    0            0            0                                       0
Real & Personal Property                  215,735            0       64,350      Various                    151,385
Other                                     390,771            0            0      Various                    390,771
                                        ------------ ------------ ------------ ------------ ------------- ------------
    Total State and Local                 727,543       24,598      134,881                                 617,260
                                        ------------ ------------ ------------ ------------ ------------- ------------
Total Taxes                               722,368       72,994      178,102                                 617,260
                                        ============ ============ ============ ============ ============= ============

                      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                                     1,417,420            0                               1,417,420
Accrued Wages & Benefits                               836,083                                              836,083
Accrued Interest                                     3,011,910                                            3,011,910
Accrued Professional Fees                              697,989                                              697,989
Accrued Taxes (refer to FORM MOR-4)                    262,725                                              262,725
Accrued Insurance, Environmental &                    (935,977)                                            (935,977)
Other
                                        ------------ ------------ ------------ ------------ ------------- ------------
Total Post-Petition Debts                            5,290,150            0            0            0     5,290,150
                                        ============ ============ ============ ============ ============= ============
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:  Nov. 1, 2001 to Nov. 30, 2001
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

 Accounts Receivable Reconciliation                                                    Amount
Total Accounts Receivable at the beginning of the reporting period                 $ 149,434
 + Amounts billed during the period                                                         0    (Note 1)
 - Amounts collected during the period                                               (102,875)
 - Bad Debt and other write-offs                                                        2,385
 + Change in Reserve                                                                        0
 - Other during the period                                                          $       0
 Total Accounts Receivable at the end of the reporting period                       $  48,944

 Accounts Receivable Aging                                                             Amount
 0 - 30 days old                                                                            0
 31 - 60 days old                                                                           0
 61 - 90 days old                                                                      13,141
 91 + days old                                                                         90,803
 --                                                                                    ------
                                                                                      103,944
 Foreign exchange, Revenue Recognition, Sales Accrual Adjustments &
 Write-offs                                                                                 0
 Amount considered uncollectible (Bad Debt)                                           (55,000)
                                                                                      -------
 Accounts Receivable (Net)                                                          $  48,944
                                                                                    =========

                              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.