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Overdrive Staff | January 01, 2012

— Max Kvidera


 

Arrow Trucking payout requested

Arrow Trucking’s bankruptcy trustee asked a court’s permission to distribute $2.9 million in what represents the final round of priority wage claims.

On Nov. 9, Trustee Patrick J. Malloy III asked the Tulsa, Okla., bankruptcy court to allow distribution of the claims the court previously approved and provision of his $94,773 trustee fee.

The trustee also filed a request that the court approve a settlement with Transportation Alliance Bank, which had been Arrow’s main financier. The bank would pay $850,000 to the bankruptcy estate and Malloy and the bank would dismiss all claims against each other.

If none of the parties objected and the court approved the request, the funds could have been distributed to hundreds of ex-employees in December. “It should be noted that this proposed distribution, if approved, coupled with the prior interim distribution, will represent payment in full of the priority wage claims filed and approved in this case,” Malloy wrote.

According to a previous court order, Charles Ercole, the attorney for 264 former employees, will be paid $271,334. In December 2010, Malloy distributed $1.97 million in priority wage claims to former employees.

Arrow closed without notice on Dec. 22, 2009, leaving drivers and freight stranded nationwide. The following New Year’s Day, the Federal Motor Carrier Safety Administration issued an emergency order for the carrier to get its trucks and cargo to safe locations or face penalties. A week later, the flatbed carrier petitioned for Chapter 7 bankruptcy.

— Jill Dunn




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