Fox Represents Unsecured Creditors’ Committee of National Trucking Company Comcar Industries in Confirmation of Chapter 11 PlanMarch 22, 2021 – Press Releases
Fox Rothschild LLP proudly represented the Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy cases of Comcar Industries, Inc. and 32 affiliated debtors, which made up one of the largest privately owned trucking companies in the country with over forty terminal and satellite locations nationwide. Following successful going-concern sales of Comcar’s several business units, on March 11, 2021, the Delaware bankruptcy court confirmed Comcar’s Plan of Liquidation to distribute sale and settlement proceeds to creditors.
Based on the Committee’s objections to Comcar’s initial proposed private sale to its minority shareholder and the identification of unaffiliated strategic buyers for the Comcar business units, the auction process generated significantly higher value for the bankruptcy estates. Through its investigation, the Committee also discovered that Comcar’s rolling stock was subject to a disguised financing arrangement and largely unencumbered by liens. As a result of the Committee’s efforts, including actual and threatened litigation, the Committee negotiated favorable settlements with Comcar’s prepetition lenders, shareholders, officers and directors, and secured the appointment of a liquidating trustee under the Plan of Liquidation to fund distributions to general unsecured creditors.
The Fox team was led by Michael A. Sweet and Gordon E. Gouveia, and included Seth A. Niederman, Jack Praetzellis, Michael R. Herz, Stephanie J. Slater and Robin Solomon.