| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers V > Headlines for VEC Liquidating Corp. > News item |
Former Velocity Express, creditor committee seek to delay ComVest hearing demanding payment
By Lisa Kerner
Charlotte, N.C., June 29 - VEC Liquidating Corp. and its official committee of unsecured creditors asked the U.S. Bankruptcy Court for the District of Delaware to adjourn the July 8 hearings and companion objection deadline for 60 days related to the committee's original request for an order to enforce ComVest Investment Partners and Velocity Acquisition I, LLC to comply with a sale settlement and amended wind-down order, according to a Wednesday court filing.
The committee said it wanted more time to determine that ComVest is in contempt of court, retain an expert witness to render a report on the meaning of the term "free cash flow" and take the deposition of experts.
As previously reported, the company and committee originally asked the court to impose sanctions against ComVest and Velocity Acquisition for contempt and order them to pay the expenses, interest and attorneys fees related to prosecution of the compliance motions.
VEC Liquidating and the committee want to force the ComVest entities to turn over 35% of the free cash flow of the company's Canadian business, which totaled $655,259 through the fourth quarter of 2010.
ComVest entities' refusal to comply with the sale settlement order and turn over the free cash has delayed the administration of VEC Liquidating's Chapter 11 case and "effectively wasted the precious few funds available to pay the wind down professional."
In addition, VEC Liquidating and the committee said ComVest was required to pay four installments of $19,000 per month required for the company's wind down professional to do his job.
VEC Liquidating was formerly Velocity Express Corp., a regional delivery services provider based in Westport, Conn. The company filed for bankruptcy on Sept. 24, 2009. Its Chapter 11 case number is 09-13294.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.