Almost a year after Arrow Trucking’s closure, a bankruptcy trustee has requested court approval to pay more than $1.97 million in priority wage claims to former employees.
Last month, Trustee Patrick J. Malloy III proposed distribution of $2 million to a 16-page list of former employees. After removing duplicate or inadvertent entries, he filed an amended proposal for the lesser amount Dec. 2, according to the U.S. Bankruptcy Court for the Northern District of Oklahoma.
The Tulsa World newspaper reported Judge Dana Rasure approved the amended distribution Dec. 8.
Malloy’s Dec. 2 pleading also requested $105,262 in trustee fees, for a total interim distribution of nearly $2.8 million. That payout, together with court-approved administrative claims, will leave more than $1.52 million for future administrative claims, additional payments to priority wage claimants filed and those that may be filed in the future.
The court had ordered that New Jersey attorney Charles Ercole is entitled to one-third of the distribution paid to 232 former employees he represented. Ercole’s clients will receive their payments, less income tax withholdings and Ercole’s fees.
The Tulsa-based flatbed carrier petitioned for Chapter 7 bankruptcy in 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.
"Until a formal regulation is established with clear guidelines and borders ...