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Former Arrow Trucking executive files bankruptcy

Former Arrow Trucking President and CEO Doug Pielsticker has filed a Chapter 7 personal bankruptcy liquidation petition in U.S. Bankruptcy Court for the Northern District of Texas on Monday, Feb. 14.

Pielsticker, who has since moved from the Tulsa area to Dallas, lists his number of creditors as between one and 49. He lists his assets as between $1 million and $10 million and his liabilities as being between $10 million and $50 million. According to court documents, he lists his debts as “primarily business debts.”

Also, Pielsticker’s petition includes a certificate of credit counseling, but a “debt repayment plan was not prepared.” 

Arrow Trucking bankruptcy trustee Patrick J. Malloy III filed suit in January against Pielsticker and his mother, Carol Pielsticker Bump. Malloy’s lawsuit alleges that Pielsticker, the company’s former president and CEO, and Bump, the company’s sole director, received fraudulent transfers of at least $12.8 million in assets for their personal use over a four-year period before the company’s filing for Chapter 7 bankruptcy in January 2010.

According to the lawsuit, Pielsticker received $8.4 million in transfers, and Bump received $4.4 million in transfers “disguised as ‘salary.’ ”

“In their capacity as director and CEO, Carol and Doug owed fiduciary duties to Arrow (Trucking),” the suit states.

“Carol and Doug, in the exercise of reasonable care and business judgment should have known that the transfers specified herein constituted either constructive fraud or were effected with the actual intent to defraud and taken steps to prevent such transfers, and that such transfers constituted the dissipation of Arrow’s assets to the detriment and harm of Arrow and its creditors.”

Malloy’s case against Doug Pielsticker has hit a snag because of the personal bankruptcy filing, but he stated that his claims against Carol Pielsticker Bump will move forward.

“Essentially my claims against Doug are stayed,” Malloy said. “I will not be able to continue pursuit of the claims in the bankruptcy court here. I can file a claim in Doug’s bankruptcy and hope there will be monies to pay some portion of the claim.”

Pielsticker’s bankruptcy petition states that “after any exempt property is excluded and administrative expenses paid, there will be no funds available for distribution to unsecured creditors.”

A meeting of creditors in Pielsticker’s bankruptcy case is scheduled for March 14. The deadline to object to debtor’s discharge or to challenge dischargeability of certain debts is May 13, according to court documents.

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