Three former executives of bankrupt Arrow Trucking filed $1.38 million in priority wage claims, drawing objections from Arrow's trustee, the Tulsa World reports.
Jonathan Moore, Joseph Mowry and Sherril Roberts filed their claims in U.S. bankruptcy court in Tulsa. Moore is the company's former chief financial officer; Mowry is its former secretary and general counsel; and Sherril Roberts, who is married to Mowry, is the former president and CEO of Altura Insurance Group Inc., a licensed insurance broker created by Arrow executives in 2005.
The sum the trio is seeking represents 16 percent of the bankrupt carrier's estate. Two of the three are defendants in a fraud lawsuit brought by a former lender.
By The Numbers: U.S. Truck Shipping Costs.
Arrow's sudden shutdown Dec. 22 was one of the most dramatic trucking bankruptcies of the recession. Hundreds of employees and owner-operators who lost their jobs and contracts are expected to file claims.
Truck drivers were stranded across the country when fuel cards issued by the company were cut off. Many employees didn't receive final paychecks.
Bankruptcy trustee Patrick J. Malloy III said the executives' claims should be subordinated to all other claims against the company, according to the Tulsa World.
Malloy said that as officers of the company, Moore and Mowry dissipated the carrier's assets with "full knowledge" Arrow could not cover its liabilities.
Malloy filed his objections to the trio's claims with the bankruptcy court. Arrow's estate is estimated to have $8.6 million in assets and $99 million in liabilities.
Former Arrow lender Transportation Alliance Bank is suing two of the executives, CFO Jonathan Moore and Secretary and General Counsel Joseph Mowry.
A Kansas City law firm, Stueve Siegel Hanson, is investigating Transportation Alliance Bank's claims against Arrow and its former officers, the newspaper said.
The Utah-based bank claims Arrow executives submitted false invoices, costing the bank $12.5 million. In addition to Moore and Mowry, Transportation Alliance Bank sued former Arrow CEO Doug Pielsticker and owner Carol Pielsticker.
-- Contact William B. Cassidy at email@example.com.