Former Velocity Express wrapping up claims, contemplating dismissal

By Jim Witters

Wilmington, Del., Sept. 24 - VEC Liquidating Corp., formerly Velocity Express Corp., is working through its remaining administrative expense claims and hopes to file a motion to dismiss the case within a week, attorney Russell C. Silberglied said during a Sept. 24 status conference in the U.S. Bankruptcy Court for the District of Delaware.

All the preference litigation cases are over, and the defined-contribution plan was terminated Aug. 31, he said.

The state of Pennsylvania filed "a handful" of administrative claims within the past week, so those and three or four existing claims must be resolved.

But Silberglied told judge Mary F. Walrath that the debtor should be ready for a dismissal hearing on Oct. 23.

The company sold substantially all of its assets to ComVest Velocity Acquisition I, LLC in November 2009.

ComVest Velocity is a subsidiary of private investment firm ComVest Investment Partners III, LP.

The company changed its name to VEC Liquidating Corp. in February 2010.

Velocity Express, a regional delivery services provider based in Westport, Conn., filed for bankruptcy on Sept. 24, 2009, in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 09-13294.

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