Arrow Trucking bankruptcy plan revealed
Pending court approval, Arrow Trucking’s bankruptcy trustee will distribute $2 million to former employees for back wages and benefits, with more than $1.5 million remaining for other claims.
Parties objecting to the Nov. 8 relief plan must file responses by Dec. 3. The proposed relief provides payments in varying amounts – each less than $7,000 – to a list of claimants 13 pages long. This represents nearly 59 percent of the $3.5 million in wage claims, noted Trustee Patrick J. Malloy III.
Malloy proposed leaving more than $1.5 million for future administrative claims and for payments to ex-employees, both for wage claims already filed or that may be filed.
A previous bankruptcy order entitles Charles Ercole, a New Jersey attorney for 232 former employees and creditors, to one-third of the distribution his clients receive.
So far, 950 creditors have filed claims in the bankruptcy case.
The Tulsa-based flatbed carrier petitioned for Chapter 7 bankruptcy in U.S. Bankruptcy Court for the Northern District of Oklahoma Jan. 8, while faced with lawsuits from unpaid employees and creditors. The consolidated bankruptcy includes Arrow Truck Leasing and Arrow Truck Real Estate companies.
The company abruptly closed Dec. 21, leaving a recorded phone message telling drivers to drop off trucks at dealerships. Truck makers, carriers and individuals helped Arrow truckers stranded on the road. Consequently, the Federal Motor Carrier Safety Administration issued a Jan. 1 emergency order for the carrier to get its trucks and cargo to safe locations or face penalties.