William B. Cassidy, Senior Editor | Nov 11, 2011 9:51AM EST
More than $2 million in bankruptcy estate assets may be distributed to 676 former employees of Arrow Trucking, a flatbed carrier that shut down in 2009.
The distribution would be the second round of payments to former employees of the carrier, which stranded hundreds of truck drivers across the U.S. when it closed.
Bankruptcy trustee Patrick J. Malloy III proposed the payments in a motion filed this week in U.S. bankruptcy court in Oklahoma, according to the Tulsa World. The bankruptcy trustee distributed nearly $2 million to 564 Arrow employees who were owed back wages in December 2010, a year after the shutdown.
Malloy also proposed a settlement with Transportation Alliance Bank last week and reached a settlement with former Arrow owner Carol Pielsticker Bump last month
Arrow shut down Dec. 22, 2009, after Transportation Alliance Bank pulled its financing. The carrier had $8.5 million in assets and nearly $100 million in liabilities.
A racketeering lawsuit TAB filed against former Arrow executives is still proceeding and may go to trial in Oklahoma next year, the Tulsa World’s D.R. Stewart reports.
Many of its assets were auctioned off in 2010 to raise cash after Arrow filed for Chapter 7 bankruptcy protection from its creditors that January.
Contact William B. Cassidy at wcassidy@joc.com. Follow him on Twitter at @wbcassidy_joc
