By D.R. STEWART World Staff Writer on Nov 11, 2011, at 2:30 AM Updated on 11/11/11 at 4:43 AM
Arrow Trucking Co.'s bankruptcy trustee proposes to distribute $2.09 million of bankruptcy estate assets to 676 former employees who have filed wage and employment law violation claims against the estate, court documents show.
In a motion filed this week in U.S. Bankruptcy Court in Tulsa, bankruptcy trustee Patrick J. Malloy III said the proposed second distribution to former employees and his proposed trustee fee of $94,772.86 will leave a balance of $123,612.75 in estate accounts.
"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 said in his motion.
If no objections to the proposed distribution are filed within 24 days, U.S. Bankruptcy Judge Dana L. Rasure could approve Malloy's motion early in December, court officials said.
That would clear the way for former Arrow employees to receive checks for back wages and employment law violation claims by Christmas, officials said.
If approved by the judge, the proposed second distribution to former employees would be made almost a year to the day after the first distribution.
In December 2010, Malloy distributed $1.97 million to 564 former Arrow employees who had filed wage and employment law violation claims against the estate.
After Arrow filed its Chapter 7 bankruptcy liquidation petition on Jan. 8, 2010, Malloy estimated Arrow's assets at $8.55 million and liabilities at $98.97 million.
On Dec. 22, 2009, Arrow abruptly closed its offices at 4230 S. Elwood Ave. and abandoned hundreds of drivers and their freight around the country without fuel or money to return home.
The employee claims against the bankruptcy estate include back wages and claims from Arrow's violation of the federal WARN Act.
The Worker Adjustment and Retraining Notification Act requires companies employing more than 100 people to give each employee at least 60 days' written notice of a plant closing and the termination of their employment.
Failure to provide the notice can make employers liable for 60 days of wages per employee, the law says.
The proposed second distribution to former employees includes 112 employees who filed wage and employment law violation claims against the estate in the past year.
The proposed second distribution also includes 264 former Arrow drivers who are represented by Charles Ercole, a Philadelphia lawyer.
Under terms of his agreement with the former drivers, Ercole is entitled to one-third of any distribution paid to his clients.
Ercole will be paid $271,334 "separately and directly by the trustee," Malloy says in his motion. "Ercole's clients will receive their distributions less applicable income tax withholdings, and less the one-third fee due to Ercole."
The average proposed gross distribution to 676 former Arrow employees before taxes is $3,094. The average proposed net distribution per employee after taxes is $2,517.93, documents show.
The largest proposed distribution to former employees is $10,331, which five former employees are scheduled to receive. The smallest is for $128.40, court documents say.
Arrow Trucking bankruptcy distribution
Second distribution to former Arrow Trucking Co. employees.
What: Arrow bankruptcy trustee proposes to distribute $2.09
million to 676 former Arrow trucking employees who filed wage
and employment law violation claims against the bankruptcy
estate.
How much: Average proposed gross distribution per employee
is $3,094.13.
How much: Average proposed net distribution per employee
is $2,517.93.
Source: U.S. Bankruptcy Court, Tulsa
D.R. Stewart 918-581-8451
don.stewart@tulsaworld.com
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