By D.R. STEWART World Staff Writer on Feb 9, 2012, at 2:35 AM Updated on 2/09/12 at 3:05 AM
Two years and 31 days after Arrow Trucking Co. filed a Chapter 7 liquidation petition in U.S. Bankruptcy Court in Tulsa, bankruptcy trustee Patrick J. Malloy III filed his final report in the case Wednesday.
"We're paying some wage claims, administrative claims and closing the case," Malloy said.
His final report lists "realized gross receipts" of $6.28 million from identified company assets and through lawsuits filed against creditors and insiders by the trustee.
Malloy's disbursements from estate assets included:
- $4.18 million in distributions to former employees who filed wage and employment law violation claims.
- $1.86 million in administrative expenses, including costs of litigation, accounting, investigative, storage and miscellaneous costs.
- $6,084 in payments to creditors.
- $4,004 in bank service fees.
In addition, court documents show, $147,150 in non-estate funds was paid to third parties in the case.
Although some employee wage claims continue to trickle in - about $40,000 in wage claims have been filed since Malloy made his second, $2.05 million distribution to 640 former employees in mid-December - remaining Arrow assets total only about $78,190, the trustee said.
Despite millions of dollars of unpaid taxes owed by Arrow to the state of Oklahoma and the Internal Revenue Service, there will be no distributions made to government tax officials, Malloy said.
"There is no money left and nowhere left to get any more," Malloy said.
Arrow's bankruptcy petition, filed on Jan. 8, 2010, listed both assets and liabilities between $100 million and $500 million.
Arrow's financial records and its corporate offices at 4230 S. Elwood Ave. were in disarray after company executives abruptly told employees to go home and closed the doors Dec. 22, 2009.
Arrow's lender, Transportation Alliance Bank of Ogden, Utah, had canceled the company's fuel credit cards the previous day. Hundreds of Arrow drivers and their freight were stranded around the country three days before Christmas.
Malloy, who has been practicing bankruptcy law for 40 years, said it was like somebody showing up at your door, saying there had been a terrible accident but not remembering where or when or how it happened.
Malloy eventually determined Arrow's assets to be $8.55 million and liabilities at $98.97 million.
"I've never been involved in a (bankruptcy) case - particularly one of this size - where you had nothing to go on," Malloy said. "It took us four months (reconstructing financial records) to file schedules of assets and liabilities. Usually, that is all done by the debtor and you're given a little bit of a road map.
"I'm just grateful we were able to pay the wage claims in full. It's one of the hardest, if not the hardest, case I've been involved with."
Former Arrow CEO Doug Pielsticker, who along with other top Arrow executives was sued by TAB for defrauding the Utah bank of $15.1 million, said he had no comment on the closing of the case.
TAB reached a settlement agreement with Pielsticker under which the former executive will repay the bank more than $400,000 over five years, court records say.
Former Arrow General Counsel Joseph Mowry died of natural causes at his Houston home in December.
Trustee’s final report on Arrow Trucking Co.’s
Chapter 7 bankruptcy case
- Bankruptcy filing Jan. 8, 2010, listing assets and liabilities
between $100 million and $500 million.
- Bankruptcy trustee Patrick J. Malloy III determines assets at
$8.55 million and liabilities at $98.97 million.
- $6.28 million: trustee’s realized gross receipts.
- $4.18 million: disbursements to former Arrow employees who
filed wage and employment law violation claims.
- $1.86 million: administrative expenses.
- $78,190: balance on hand after miscellaneous fees and
expenses.
Source: U.S. Bankruptcy Court, Tulsa.
D.R. Stewart 918-581-8451
don.stewart@tulsaworld.com
Original Print Headline: Bankruptcy case closed
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