Thomas L. Gallagher | Nov 05, 2009 2:17PM EST
The United States Bankruptcy Court for the District of Delaware approved Nov. 3 the sale of time definite regional carrier Velocity Express to private investor Comvest Investment Partners.
The Court approved the sale, which was announced in September (see story), following a post-petition auction process and a global settlement by Velocity with its unsecured creditors. Under terms of the sale, ComVest will become the company’s new majority owner. The company’s balance sheet will be significantly deleveraged with the elimination of approximately $100 million in debt.
“With ComVest as our new owner and partner, we believe we will now have the financial and operational support we need to grow our business aggressively and profitably,” said Vincent A. Wasik, Velocity's chairman and chief executive officer. The company plans to pursue large business development opportunities and increase investment in technology.
“We are … optimistic that our extensive experience in the transportation and logistics industry and the operational contributions we intend to make will yield positive results for the Company, and its customers, employees and independent contractors,” said Jose Gordo, a partner at ComVest.
Velocity Express has one of the largest nationwide networks of regional, time definite, ground delivery service areas, providing same day service throughout the United States.
Contact Thomas L. Gallagher at tgallagher@joc.com.