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U.S. Bankruptcy Court approves Arrow Trucking consolidation

It’s been five months to the day since more than 1,000 drivers and employees for Tulsa-based Arrow Trucking found themselves without jobs as the 61-year-old trucking company collapsed without warning on Dec. 22, 2009.

Some were under loads and were stranded all over the country without fuel, while others had multiple paychecks bounce. Then on Jan. 8, Arrow Trucking filed a Chapter 7 bankruptcy liquidation petition.

Since that time, the big question for former employees and drivers who were financially devastated by the company’s abrupt shutdown has been whether they will receive the back wages they are owed. Former employees of Arrow Trucking have filed more than $700,000 in wage and benefit claims against the bankruptcy estate.

Patrick J. Malloy III, bankruptcy trustee for Arrow Trucking, told Land Line on Tuesday that “clearly there will be substantial payments to wage earners,” which is good news for former employees.

This information comes after a judge in the U.S. Bankruptcy Court for the Northern District of Oklahoma in Tulsa recently granted Malloy’s motion to consolidate Arrow Truck Leasing and Arrow Truck Real Estate with Arrow Trucking Co. Several months ago, the parent company, Megan Corp., was also consolidated into the bankruptcy estate.

For months, Malloy has been working to settle claims of the bankruptcy estate and said he is also in settlement discussions relative to other claims that he is “not at liberty to discuss but could generate $1.5 million.”

“According to my calculations these numbers represent in excess of $2.8 million in actual recoveries (real estate, public auctions) and the realistic potential of approximately $4.3 million in total recoveries in a period of approximately five months,” Malloy wrote in an e-mail to Land Line .

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