Approval of Comcar’s chapter liquidation plan
A federal decide has accepted plans to liquidate the few remaining belongings of bankrupt trucking firm Comcar Industries: apparently actual property.
The Chapter 11 liquidation plan was accepted by the Delaware District Chapter Courtroom on Wednesday. The remaining belongings can be bought by way of two trusts, with an anticipated restoration of $ 23.4 million, in line with court docket paperwork.
About $ 15 million can be out there to collectors, in line with the liquidation evaluation filed in court docket in January. Most can be distributed to secured collectors, with $ 3.1 million remaining for unsecured collectors – with round $ 78.6 million in claims.
What stays quantities to desk scraps from an enormous non-public trucking firm that operated throughout the U.S. The guts of the Florida-based firm – its trucking enterprise – was bought as a part of a collection of chapter agreements in 2020.
TFI Worldwide (NYSE: TFII) made three acquisitions of Comcar throughout its shopping for spree that 12 months. The Canadian firm selected the carriers Comcar CCC Transportation, CT Transportation and MCT Transportation.
TFI CEO Alain Bedard spoke out on the Comcar offers throughout a name with monetary analysts in October: “I mentioned, ‘Guys, can we discover a firm that has energetic, who’re individuals, and they do not know what to do with them? ‘That is why we purchased this man who was below court docket safety. We purchased MCT from him. We purchased CT from him, and we purchased CCC from him.
Chapter closes in one of many greatest trucking bankruptcies in latest reminiscence
The Comcar chapter was one of many largest within the US trucking business in latest reminiscence. On the time of submitting, in Might 2020, the corporate had greater than 4,000 vehicles and greater than 40 terminals.
Finally, the corporate discovered itself overburdened with debt, whereas struggling heavy losses. On the time of submitting, it had $ 66.7 million in belongings and $ 85.6 million in liabilities.
Comcar had misplaced $ 25 million in 2019 and had already misplaced $ 6 million by mid-2020, in line with a court docket report.
The prepackaged chapter led to a way more orderly liquidation in comparison with the chaotic shutdown of Celadon Group final December.
Nonetheless, it has had its share of authorized drama. Gross sales of CCC Transportation and CTTS Restore to a gaggle led by the previous chairman of Comcar failed after unsecured collectors objected.
Click on for extra articles on FreightWaves by Nate Tabak