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VEXPQ SEC Suspension:
http://www.sec.gov/litigation/suspensions/2014/34-71578.pdf
Order:
http://www.sec.gov/litigation/suspensions/2014/34-71578-o.pdf
Admin Proceeding:
http://www.sec.gov/litigation/admin/2014/34-71579.pdf
VEXPQ: Finra deleted symbol. BK case dismissed.
http://www.otcbb.com/asp/dailylist_detail.asp?d=01/07/2014&mkt_ctg=NON-OTCBB
VEXPQ is gaining attension and momentum
Seeclear - You still think this is a piece of the puzzle?
The new owners ...http://www.comvest.com/ ..SC
U.S. Federal Court Approves Sale of Velocity Express to ComVest
Sale Officially Approved on November 3, 2009
WESTPORT, Conn., Nov 04, 2009 (BUSINESS WIRE) -- --ComVest to Become New Majority Owner of Velocity Express
--Transaction Eliminates over $100 Million of Debt
--Velocity Believes it Will Have One of Industry's Strongest Balance Sheets
Velocity Express Corporation (OTC:VEXP.PK), the nation's largest provider of time definite regional delivery solutions, announced that the sale of the Company's operating assets ("Velocity" or the "Company") to a subsidiary ("ComVest") of ComVest Investment Partners III, L.P., a leading private investment firm with a proven track record in the transportation industry, has officially been approved by the United States Bankruptcy Court for the District of Delaware pursuant to Section 363 of the U.S. Bankruptcy Code. The sale order confirming the Court's approval was entered on November 3, 2009.
The Court approved the sale following a post-petition auction process and a global settlement by Velocity with its unsecured creditors. Pursuant to the terms of the sale, ComVest will become the Company's new majority owner and the Company's balance sheet will be significantly deleveraged.
Vincent A. Wasik, Velocity's Chairman and Chief Executive Officer, stated, "This is a momentous event in the history of our company. With ComVest as our new owner and partner, we believe we will now have the financial and operational support we need to grow our business aggressively and profitably. We are dedicated to continuing to provide excellent service to our customers as well as a dynamic and rewarding work environment for our employees and independent contractors."
"This transaction will reduce the burden of our legacy liabilities by eliminating over $100 million of debt, creating a financially stronger, well capitalized company. With a better financial position, we will continue to be able to pursue large business development opportunities, and increase our investment in technology and services to benefit our valued Customers. Thanks to the continued support and hard-work of our more than 3,300 dedicated Employees and Independent Contractors, we expect this transition to be seamless to our Customers."
Jose Gordo, a Partner at ComVest, said, "We are committed to making Velocity a dominant logistics services company. With our support, we believe that the Company will now have one of the strongest balance sheets in its industry, positioning it optimally to provide continuing top quality service to its solid existing customer base and to target new significant business development opportunities from large customers looking for customized, efficient logistics solutions. We are also optimistic that our extensive experience in the transportation and logistics industry and the operational contributions we intend to make will yield positive results for the Company, and its customers, employees and independent contractors."
Additional information about the Velocity Express sale is available at the Company's web site, www.velocityexpress.com under Company Info.
About ComVest
The ComVest Group is a leading private investment firm focused on providing debt and equity solutions to lower middle-market companies with enterprise values of less than $350 million. Since 1988, The ComVest Group has invested more than $2 billion of capital in over 200 public and private companies worldwide. Through its extensive financial resources and broad network of industry experts, The ComVest Group is able to offer our companies total financial sponsorship, critical strategic support, and business development assistance.
About Velocity Express
Velocity Express has one of the largest nationwide networks of regional, time definite, ground delivery service areas, providing a national footprint for customers desiring same day service throughout the United States. The Company's services are supported by a customer-focused technology infrastructure, providing customers with the reliability and information they need to manage their transportation and logistics systems, including a proprietary package tracking system that enables customers to view the status of any package via a flexible web reporting system.
Forward Looking Statements
Certain statements in this press release, and other written or oral statements made by or on behalf of the Company, may constitute "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and the Company's future performance that are not historical facts, as well as management's expectations, beliefs, plans, objectives, assumptions and projections about future events or future performance, are forward looking statements within the meaning of these laws. Forward-looking statements include statements that are preceded by, followed by, or include words such as "believes," "expects," "anticipates," "plans," "estimates," "intends," or similar expressions. These statements are based on beliefs and assumptions of the Company's management, which in turn are based on currently available information. These assumptions could prove inaccurate.
Forward-looking statements are also affected by known and unknown risks that may cause the actual results of the Company to differ materially from any future results expressed or implied by such forward-looking statements. Many of these risks are beyond the ability of the Company to control or predict as identified in the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended June 28, 2008 as well as in the other documents that the Company files from time to time with the Securities and Exchange Commission. Management believes that the forward-looking statements contained in this release are reasonable; however, undue reliance should not be placed on any forward-looking statements contained herein, which are based on current expectations. Further, forward-looking statements speak only as of the date they are made, and management undertakes no obligation to publicly update any of them in light of new information or future events. Accordingly, no assurances can be given that the transactions described in this press release will be consummated or approved by the Bankruptcy Court or as to the timing of such events.
SOURCE: Velocity Express Corporation
CONTACT:
ComVest Group Marshall Griffin, 561-727-2052
Copyright Business Wire 2009
SC.
Another dump of shares in the process...But Who is buying...?...SC
'unexpected'..Going through a a bankruptcy right now...Keeping an eye on it...SC.
so whats the deal with velocity?
Some buying here today?
VEXPQ ...Item 1.03 Bankruptcy or Receivership
On September 24, 2009 (the “Petition Date”), the Sellers filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court in the District of Delaware seeking relief under the provisions of the Bankruptcy Code (the “Bankruptcy Case”). During the pendency of the Bankruptcy Case, the Sellers intend to operate their businesses as debtors-in-possession under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
Subject to the approval of the Bankruptcy Court, on September 24, 2009, the Sellers entered into a Postpetition Agreement (the “DIP Agreement”) with Burdale Capital Finance, Inc. (“Burdale”), as administrative agent (the “Agent”) and lender, to provide liquidity to the Sellers for use of the operation of Sellers’ business during the Bankruptcy Case pending the sale of substantially all of the Sellers’ assets. The DIP Agreement modifies the Loan and Security Agreement among certain of the Sellers and certain of their subsidiaries as borrowers and guarantors, and Burdale as the Agent and the lender, dated as of March 13, 2009, (the “Loan and Security Agreement”), as amended by Amendment No. 1 to Loan and Security Agreement, dated as of May 12, 2009 (“Amendment No. 1” and, the Loan and Security Agreement as amended thereby, the “Loan Agreement”, and as further amended by the DIP Agreement, the “DIP Facility”). The DIP Facility provides the Sellers with up to a $14 million revolving line of credit, whereas the maximum amount of advances under the Loan Agreement was limited to $12 million. The obligations of the borrowers and the guarantors under the DIP Facility are joint and several and are secured by substantially all of the assets of the borrowers and guarantors.
The interest rate applicable to revolving loans made under the DIP Facility will bear a per annum interest rate equal to the sum of 6% plus the base rate under the Loan Agreement. The base rate is the highest of: (a) rate of interest announced from time to time by JPMorgan Chase Bank as its prime rate, (b) the weighted average of the rates on overnight Federal Funds transactions with members of the Federal Reserve System arranged by Federal Funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day, plus one-half of one percentage point, (c) the London Interbank Offered Rate for a one month interest period plus one percentage point and (d) 4.25%.
In addition to paying interest on outstanding borrowings under the DIP Facility, the borrowers are also required to pay a letter of credit fee that accrues at a rate equal to 6% per annum multiplied by the average daily balance of the undrawn amount of all outstanding letters of credit and a fee on the unutilized portion of the revolver equal to 1.0% per annum. The borrowers paid a closing fee of $175,000 and are also required to pay certain fees, costs and expenses of Burdale arising in connection with the DIP Facility and the related documents, transactions and agreements.
The DIP Facility contains a number of customary covenants that, among other things, restrict the borrowers’ and guarantors’ ability to incur additional debt, create liens on assets, sell assets, pay dividends, engage in mergers and acquisitions, change the business conducted by the borrowers or guarantors, or engage in transactions with affiliates. The DIP Facility also includes specified financial covenants.
The foregoing description of the DIP Facility does not purport to be complete, and is qualified in its entirety by reference to the Loan Agreement, Amendment No. 1 and the DIP Agreement, which are filed as exhibits hereto as Exhibits 99.1 , 99.2 and 99.3 , respectively.
SC
VEXPQ..Not pretty as of late ..Looks as if had some shorts cover... http://bigcharts.marketwatch.com/industry/bigcharts-com/focus.asp?bcind_ind=2770&bcind_sid=171608 SC.
VEXPQ..The Players... Chairman, President, and CEO: Vincent A. (Vince) Wasik
• President and COO: Jeffrey T. (Jeff) Hendrickson
• CFO: Edward W. (Ted) Stone
SC.
VEXPQ..Velocity Express Corporation
PROFILE
Velocity Express Corporation
One Morningside Drive North
Westport , CT , 06880
Phone: 203.349.4160
Web Page: http://www.velocityexp.com/
Ticker
Exchange
Status
VEXPQ
OTC
Active
BUSINESS SUMMARY
Velocity Express Corporation (Velocity) is engaged in the business of providing time definite ground package delivery services. The Company operates primarily in the United States with limited operations in Canada. Velocity operates in a single-business segment. The Company has a network of time definite logistics solutions in the United States and are is a provider of distribution, scheduled and expedited logistics services. Velocity+IBk-s service offerings are divided into three categories: distribution logistics, consisting of the receipt of customer bulk shipments that are divided and sorted at metropolitan locations for delivery to multiple locations; scheduled logistics, consisting of the daily pickup and delivery of parcels with narrowly defined time schedules predetermined by the customer, and expedited logistics, consisting of point-to-point service for customers with time sensitive delivery requirements.
FINANCIAL SUMMARY - Last Updated: 08/05/09
BRIEF: For the thirty nine weeks ended 28 March 2009, Velocity Express Corporation's revenues decreased 24% to $199.1M. Net loss applicable to common increased 13% to $36.8M. Revenues reflect decreased income due to a planned exit from uneconomic customer contracts acquired with CD&L merger. Net loss was partially offset by decreased cost of service revenues, decreased occupancy expenses and lower selling, general & administrative expenses.
SC.
ComVest and Velocity Express Reach Agreement on Significant Financial Restructuring
Restructuring will Eliminate $100+ Million of Debt and Create a Financially Stronger Company
WESTPORT, Conn., Sep 24, 2009 (BUSINESS WIRE) -- --Substantial Reduction in Leverage Will Help Poise Velocity for Substantial Future Growth
--Company Expects to Complete Restructuring in 30 to 45 Days
--Operations will Continue As Usual During Restructuring Period
--All Employee and Independent Contractor Payments Will Be Guaranteed to Ensure Seamless Transition
Velocity Express Corporation (OTC:VEXP.PK) ("Velocity" or "the Company"), the nation's largest provider of time definite regional delivery solutions, announced that it has reached an agreement with a subsidiary ("ComVest") of ComVest Investment Partners III, L.P., a leading private investment firm with a proven track record in the transportation industry. Under the agreement, ComVest will begin a process to become the Company's new majority owner and significantly deleverage the Company through an exchange of debt for equity in Velocity.
Vincent A. Wasik, Velocity's Chairman and Chief Executive Officer, stated, "We believe that this transaction is a major win for Velocity, our Customers, Independent Contractors and Employees. It will reduce the burden of our legacy liabilities by eliminating over $100 million of debt and create a financially stronger, well capitalized company. With a stronger financial position, we will continue to be able to pursue large business development opportunities, and increase our investment in technology and services to benefit our valued Customers. We will also have the backing and support of a new strong financial and operating partner in ComVest. Thanks to the continued support and hard-work of our more than 4,000 dedicated Employees and Independent Contractors, we expect this transition to be seamless to our Customers."
Jose Gordo, a Partner at ComVest, said, "ComVest is truly excited about the future prospects of Velocity. We believe that this restructuring will eliminate the significant debt that has burdened the Company for the last few years and turn the Company's balance sheet into a major strength. Velocity has a solid operational foundation with outstanding long-term Customers and a strong sales pipeline. Together, we look forward to continuing to provide Velocity's Customers with the timely, high-quality service they have come to expect."
Velocity's restructuring will be accomplished through a pre-packaged Section 363 sale pursuant to Chapter 11 of the United States Bankruptcy Code. The change in ownership will be achieved through a restructuring of Velocity's balance sheet in which ComVest will exchange its Velocity debt for a controlling equity ownership interest. Upon the completion of the transaction, ComVest will own the substantial majority of Velocity's equity. The management team, which will remain in place, will own a minority stake in the restructured Company, as will former bondholders.
The company expects that this transition will be seamless for Customers, Independent Contractors, Employees and Vendors. All settlement payments for Independent Contractors as well as payroll and benefits for Velocity employees have been guaranteed by Velocity to ensure a smooth process, which should be completed in 30 to 45 days.
Additional information about the Velocity Express restructuring is available at the Company's web site, www.velocityexpress.com under Company Info.
About ComVest
The ComVest Group is a leading private investment firm focused on providing debt and equity solutions to lower middle-market companies with enterprise values of less than $350 million. Since 1988 the ComVest Group has invested more than $2 billion of capital in over 200 public and private companies worldwide. Through our extensive financial resources and broad network of industry experts, we are able to offer our companies total financial sponsorship, critical strategic support, and business development assistance.
About Velocity Express
Velocity Express has one of the largest nationwide networks of regional, time definite, ground delivery service areas, providing a national footprint for customers desiring same day service throughout the United States. The Company's services are supported by a customer-focused technology infrastructure, providing customers with the reliability and information they need to manage their transportation and logistics systems, including a proprietary package tracking system that enables customers to view the status of any package via a flexible web reporting system.
SC.
VEXPQ...This is a chapter 11 .... Definition--> http://en.wikipedia.org/wiki/Chapter_11,_Title_11,_United_States_Code SC. Chapter 11, Title 11, United States Code
From Wikipedia, the free encyclopedia
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Bankruptcy in the United States
Bankruptcy in the United States
Authority · History
U.S. Trustee
Court · BAP
Code · FRBP
Chapters
Chapter 7 · Chapter 9 · Chapter 11 · Chapter 12 · Chapter 13 · Chapter 15
Aspects of bankruptcy law
Automatic stay · Discharge
Bankruptcy trustee · Claim
Means test · DIP
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Chapter 11 is a chapter of the United States Bankruptcy Code, which permits reorganization under the bankruptcy laws of the United States. Chapter 11 bankruptcy is available to every business, whether organized as a corporation or sole proprietorship, and to individuals, although it is most prominently used by corporate entities. In contrast, Chapter 7 governs the process of a liquidation bankruptcy, while Chapter 13 provides a reorganization process for the majority of private individuals.
Contents [hide]
1 Chapter 11 in General
2 Features of Chapter 11 bankruptcy
2.1 The chapter 11 plan
2.2 Automatic stay
2.3 Executory contracts
2.4 Priority
2.5 Section 1110
3 Stock
4 Rationale
5 Criticism
6 Statistics
6.1 Bankruptcy frequency
6.2 Largest bankruptcies
7 Notes
8 Similar programs in other countries
9 External links
[edit] Chapter 11 in General
When a business is unable to service its debt or pay its creditors, the business or its creditors can file with a federal bankruptcy court for protection under either Chapter 7 or Chapter 11.
In Chapter 7 the business ceases operations, a trustee sells all of its assets, and then distributes the proceeds to its creditors. Any residual amount is returned to the owners of the company. In Chapter 11, in most instances the debtor remains in control of its business operations as a debtor in possession, and is subject to the oversight and jurisdiction of the court.[1]
[edit] Features of Chapter 11 bankruptcy
Chapter 11 bankruptcy retains many of the features present in all, or most bankruptcy proceedings in the United States. It also provides additional tools for debtors as well. Most importantly, 11 U.S.C. § 1108 empowers the trustee to operate the debtor's business. In Chapter 11, unless appointed for cause, the debtor acts as trustee of the business.[2]
Bankruptcy affords the debtor in possession a number of mechanisms to restructure its business. A debtor in possession can acquire financing and loans on favorable terms by giving new lenders first priority on the business' earnings. The court may also permit the debtor in possession to reject and cancel contracts. Debtors are also protected from other litigation against the business through the imposition of an automatic stay. While the automatic stay is in place, most litigation against the debtor is stayed, or put on hold, until it can be resolved in bankruptcy court, or resumed in its original venue.
If the business's debts exceed its assets, the bankruptcy restructuring results in the company's owners being left with nothing; instead, the owners' rights and interests are ended and the company's creditors are left with ownership of the newly reorganized company.
All creditors are entitled to be heard by the court.[citation needed] The court is ultimately responsible for determining whether the proposed plan of reorganization complies with the bankruptcy law.
[edit] The chapter 11 plan
Chapter 11 is reorganization, as opposed to liquidation. Debtors may "emerge" from a Chapter 11 bankruptcy within a few months or within several years, depending on the size and complexity of the bankruptcy. The Bankruptcy Code accomplishes this objective through the use of a bankruptcy plan. With some exceptions, the plan may be proposed by any party in interest.[3] Interested creditors then vote for a plan. Upon its confirmation, the plan becomes binding and identifies the treatment of debts and operations of the business for the duration of the plan.
Debtors in Chapter 11 have the exclusive right to propose a plan of reorganization for a period of time (in most cases 120 days). After that time has elapsed, creditors may also propose plans. Plans must satisfy a number of criteria in order to be "confirmed" by the bankruptcy court. Among other things, creditors must vote to approve the plan of reorganization. If a plan cannot be confirmed, the court may either convert the case to a liquidation under Chapter 7, or, if in the best interests of the creditors and the estate, the case may be dismissed resulting in a return to the status quo before bankruptcy. If the case is dismissed, creditors will look to non-bankruptcy law in order to satisfy their claims.
[edit] Automatic stay
As with other forms of bankruptcy, petitions filed under Chapter 11 invoke the automatic stay of § 362. The automatic stay requires all creditors to cease collection attempts, and makes post-petition debt collection void. Under some circumstances, creditors or the United States Trustee can ask the court to convert the case to a liquidation under Chapter 7, or to appoint a trustee to manage the debtor's business. The court will grant a motion to convert to Chapter 7 or appoint a trustee if either of these actions is in the best interest of all creditors. Sometimes a company will liquidate under Chapter 11, in which the pre-existing management may be able to help get a higher price for divisions or other assets than a Chapter 7 liquidation would be likely to achieve. Appointment of a trustee requires some wrongdoing or gross mismanagement on the part of existing management and is relatively rare.
[edit] Executory contracts
Some contracts, known as executory contracts, may be rejected if canceling them would be financially favorable to the company and its creditors. Such contracts may include labor union contracts, supply or operating contracts (with both vendors and customers), and real estate leases. The standard feature of executory contracts is that each party to the contract has duties remaining under the contract. In the event of a rejection, the remaining parties to the contract become unsecured creditors of the debtor.
[edit] Priority
Chapter 11 follows the same priority scheme as other bankruptcy chapters. The priority structure is defined primarily by § 507 of the Bankruptcy Code (11 U.S.C. § 507.)
As a general rule secured creditors—creditors who have a security interest, or collateral, in the debtor's property—will be paid before unsecured creditors. Unsecured creditors' claims are prioritized by § 507. For instance the claims of suppliers of products or employees of a company may be paid before other unsecured creditors are paid. Each priority level must be paid in full before the next lowest priority level may receive payment.
[edit] Section 1110
Section 1110 (11 U.S.C. § 1110) generally provides a secured party with an interest in an aircraft the ability to take possession of the equipment within 60 days after a bankruptcy filing unless the airline cures all defaults. More specifically, the right of the lender to take possession of the secured equipment is not hampered by the automatic stay provisions of the U.S. Bankruptcy Code.
[edit] Stock
If the company's stock is publicly traded, a Chapter 11 filing generally causes it to be delisted from its primary stock exchange if listed on the New York Stock Exchange, the American Stock Exchange, or the NASDAQ. On the NASDAQ the identifying fifth letter "Q" at the end of a stock symbol indicates the company is in bankruptcy (formerly the "Q" was placed in front of the pre-existing stock symbol; a celebrated example was Penn Central, whose symbol was originally "PC" and became "QPC" after the company filed Chapter 11 in 1970). Many stocks that are delisted quickly resume listing as over-the-counter (OTC) stocks. In the overwhelming majority of cases, the Chapter 11 plan, when confirmed, terminates the shares of the company, rendering shares valueless.
Individuals may file Chapter 11, but due to the complexity and expense of the proceeding, this option is rarely chosen by debtors who are eligible for Chapter 7 or Chapter 13 relief.
[edit] Rationale
In enacting Chapter 11 of the Bankruptcy code, Congress concluded that it is sometimes the case that the value of a business is greater if sold or reorganized as a going concern than the value of the sum of its parts if the business's assets were to be sold off individually. It follows that it may be more economically efficient to allow a troubled company to continue running, cancel some of its debts, and give ownership of the newly reorganized company to the creditors whose debts were canceled. Alternatively, the business can be sold as a going concern with the net proceeds of the sale distributed to creditors ratably in accordance with statutory priorities. In this way, jobs may be saved, the (previously mismanaged) engine of profitability which is the business is maintained (presumably under better management) rather than being dismantled, and, as a proponent of a chapter 11 plan is required to demonstrate as a precursor to plan confirmation, the business's creditors end up with more money than they would in a Chapter 7 liquidation.
[edit] Criticism
Some critics have claimed that Chapter 11 bankruptcy is excessively lenient in giving a needless "escape hatch" to the incompetent management of a failing company, damaging the efficiency of the economy as a whole and allowing poor managers to continue managing. It is unusual for the management of a company in Chapter 11 to be fired, as it is usually assumed that the present management team knows far more about the company and its customers than would a new set of management. These critics note that in Europe, bankruptcy law is far less lenient for failing companies.
Another efficiency criticism is that a company undergoing Chapter 11 bankruptcy is effectively operating under the "protection" of the court until it emerges, in some cases giving the bankrupt company a great advantage against its competitors, distorting the market and harming more competitive businesses. Where a key market participant (or more than one) goes into Chapter 11, it can also result in significant over-capacity in the industry. The most-cited recent example is the airline industry in the United States; in 2006 over half the industry's seating capacity was on airlines that were in Chapter 11.[4] These airlines were able to stop making debt payments, freeing up cash to expand routes or weather a price war against competitors — all with the bankruptcy court's approval. This is especially important in the airline industry as fixed capital costs for the airplanes (and the debt on those costs) make up such a large part of the airlines' expenditures.
Others criticize the process on the basis that, by forestalling the creditors' rights to enforce their security in the event of non-payment, it reduces the economic value of collateral in the United States, and thereby increases the cost of secured lending. However, studies on the subject seem to reach different conclusions on the extent of this, or indeed whether it is in fact the case at all in practice.[5]
[edit] Statistics
[edit] Bankruptcy frequency
Chapter 11 bankruptcy cases dropped by 60% from 1991 to 2003. One 2007 study[6] found this was because businesses were turning to bankruptcy-like proceedings under state law, rather than the federal bankruptcy proceedings, including those under chapter 11. Insolvency proceedings under state law, the study stated, are currently faster, less expensive, and more private, with some states not even requiring court filings. However, a 2005 study[6] claimed the drop may have been due to an increase in the incorrect classification of many bankruptcies as "consumer cases" rather than "business cases".
Cases involving more than US$50 million in assets are almost always handled in federal bankruptcy court, and not in bankruptcy-like state proceeding.
[edit] Largest bankruptcies
The largest bankruptcy in history was of the US investment bank Lehman Brothers Holdings Inc., which listed $639 billion in assets as of its Chapter 11 filing in 2008. The 15 largest corporate bankruptcies as of 1 June, 2009:[7]
Company Bankruptcy date Total Assets pre-bankruptcy Total assets pre-bankruptcy at today's value Filing court district
Lehman Brothers Holdings Inc. 2008-09-15 $639,063,000,800 $633 billion NY-S
Washington Mutual 2008-09-26 $327,913,000,000 $325 billion DE
Worldcom Inc. 2002-07-21 $103,914,000,000 $123 billion NY-S
General Motors Corporation [8] 2009-06-01 $82,300,000,000 $82.3 billion NY-S
Enron Corp.* 2001-02-12 $63,392,000,000 $76.3 billion NY-S
Conseco, Inc. 2002-12-18 $61,392,000,000 $72.7 billion IL-N
Chrysler LLC [9] 2009-04-30 $39,300,000,000 $39.3 billion NY
Texaco, Inc. 1987-04-12 $35,892,000,000 $67.3 billion NY-S
Financial Corp. of America 1988-09-09 $33,864,000,000 $61 billion CA-C
Refco Inc. 2005-10-17 $33,333,172,000 $36.4 billion NY-S
Global Crossing Ltd. 2002-01-28 $30,185,000,000 $35.8 billion NY-S
Pacific Gas and Electric Co. 2001-04-06 $29,770,000,000 $35.8 billion CA-N
UAL Corp. 2002-12-09 $25,197,000,000 $29.8 billion IL-N
Delta Air Lines, Inc. 2005-09-14 $21,801,000,000 $23.8 billion NY-S
Delphi Corporation, Inc. 2005-10-08 $22,000,000,000 $23.8 billion NY
* The Enron assets were taken from the 10-Q filed on 2001-11-19. The company announced that the annual financials were under review at the time of filing for Chapter 11
SC.
VEXPQ..Sec... Link to Bankruptcy Filing... http://www.pinksheets.com/edgar/GetFilingHtml?FilingID=6814756 SC
shs decreased by 1 for 15 split
Pay Date: Dec 7, 2007
TA:
Wells Fargo Shareholder Services (Minneapolis, MN)
A Division of Wells Fargo Bank
161 N. Concord Exchange
P.O. Box 738
South St. Paul, MN 55101
Security Notes
Capital Change=shs decreased by 1 for 4 split. Pay date=03/12/1996.
◦Capital Change=shs decreased by 1 for 5 split. Pay date=4-25-02
◦New Issue=12-79 3,000,000 shs at 3 cents by the company
◦note=Deleted from NASDAQ on 8/5/2009.
Estimated Market Cap
$168,593 as of Oct 2, 2009
Outstanding Shares
3,371,865 as of Feb 7, 2009
Number of Share Holders of Record
379 as of Oct 14, 2008
Sponsor at the MCAA and NTLA expo in Scottsdale? Hmmm, weird.
http://mcaa.com/2009_ERS/sponsorships.html
The investor that is doing the restructuring...
http://www.comvest.com/
September 24, 2009
COMVEST AND VELOCITY EXPRESS REACH AGREEMENT ON SIGNIFICANT FINANCIAL RESTRUCTURING
Restructuring will Eliminate $100+ Million of Debt and Create a Financially Stronger Company
Substantial Reduction in Leverage Will Help Poise Velocity for Substantial Future Growth
Company Expects to Complete Restructuring in 30 to 45 Days
Operations will Continue As Usual During Restructuring Period
All Employee and Independent Contractor Payments Will Be Guaranteed to Ensure Seamless Transition
WESTPORT, Conn. September 24, 2009 -- Velocity Express Corporation (NASDAQ:VEXP) ("Velocity" or "the Company"), the nation's largest provider of time definite regional delivery solutions, announced that it has reached an agreement with a subsidiary ("ComVest") of ComVest Investment Partners III, L.P., a leading private investment firm with a proven track record in the transportation industry. Under the agreement, ComVest will begin a process to become the Company's new majority owner and significantly deleverage the Company through an exchange of debt for equity in Velocity.
Vincent A. Wasik, Velocity's Chairman and Chief Executive Officer, stated, "We believe that this transaction is a major win for Velocity, our Customers, Independent Contractors and Employees. It will reduce the burden of our legacy liabilities by eliminating over $100 million of debt and create a financially stronger, well capitalized company. With a stronger financial position, we will continue to be able to pursue large business development opportunities, and increase our investment in technology and services to benefit our valued Customers. We will also have the backing and support of a new strong financial and operating partner in ComVest. Thanks to the continued support and hard-work of our more than 4,000 dedicated Employees and Independent Contractors, we expect this transition to be seamless to our Customers."
Jose Gordo, a Partner at ComVest, said, "ComVest is truly excited about the future prospects of Velocity. We believe that this restructuring will eliminate the significant debt that has burdened the Company for the last few years and turn the Company's balance sheet into a major strength. Velocity has a solid operational foundation with outstanding long-term Customers and a strong sales pipeline. Together, we look forward to continuing to provide Velocity's Customers with the timely, high-quality service they have come to expect."
Velocity's restructuring will be accomplished through a pre-packaged Section 363 sale pursuant to Chapter 11 of the United States Bankruptcy Code. The change in ownership will be achieved through a restructuring of Velocity's balance sheet in which ComVest will exchange its Velocity debt for a controlling equity ownership interest. Upon the completion of the transaction, ComVest will own the substantial majority of Velocity's equity. The management team, which will remain in place, will own a minority stake in the restructured Company, as will former bondholders.
The company expects that this transition will be seamless for Customers, Independent Contractors, Employees and Vendors. All settlement payments for Independent Contractors as well as payroll and benefits for Velocity employees have been guaranteed by Velocity to ensure a smooth process, which should be completed in 30 to 45 days.
Additional information about the Velocity Express restructuring is available at the Company's web site, www.velocityexpress.com under Company Info.
About ComVest
The ComVest Group is a leading private investment firm focused on providing debt and equity solutions to lower middle-market companies with enterprise values of less than $350 million. Since 1988 the ComVest Group has invested more than $2 billion of capital in over 200 public and private companies worldwide. Through our extensive financial resources and broad network of industry experts, we are able to offer our companies total financial sponsorship, critical strategic support, and business development assistance.
About Velocity Express
Velocity Express has one of the largest nationwide networks of regional, time definite, ground delivery service areas, providing a national footprint for customers desiring same day service throughout the United States. The Company's services are supported by a customer-focused technology infrastructure, providing customers with the reliability and information they need to manage their transportation and logistics systems, including a proprietary package tracking system that enables customers to view the status of any package via a flexible web reporting system.
Forward Looking Statements
Certain statements in this press release, and other written or oral statements made by or on behalf of the Company, may constitute "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and the Company's future performance that are not historical facts, as well as management's expectations, beliefs, plans, objectives, assumptions and projections about future events or future performance, are forward looking statements within the meaning of these laws. Forward-looking statements include statements that are preceded by, followed by, or include words such as "believes", "expects", "anticipates", "plans", "estimates", "intends", or similar expressions. These statements are based on beliefs and assumptions of the Company's management, which in turn are based on currently available information. These assumptions could prove inaccurate.
Forward-looking statements are also affected by known and unknown risks that may cause the actual results of the Company to differ materially from any future results expressed or implied by such forward-looking statements. Many of these risks are beyond the ability of the Company to control or predict as identified in the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended June 28, 2008 as well as in the other documents that the Company files from time to time with the Securities and Exchange Commission. Management believes that the forward-looking statements contained in this release are reasonable; however, undue reliance should not be placed on any forward-looking statements contained herein, which are based on current expectations. Further, forward-looking statements speak only as of the date they are made, and management undertakes no obligation to publicly update any of them in light of new information or future events. Accordingly, no assurances can be given that the transactions described in this press release will be consummated or approved by the Bankruptcy Court or as to the timing of such events.
CONTACT:
Meaghan Repko / Jeremy Jacobs
212-355-4449
Joele Frank, Wilkinson Brimmer Katcher
Velocity Express Sold in Bankruptcy Deal
William B. Cassidy | Sep 24, 2009 9:22PM GMT
The Journal of Commerce Online - News Story
Parcel & Package| Specialized| Trucking| United States
Same-day package firm will restructure, keep management, in debt-for-equity swap
Same-day package company Velocity Express filed for Chapter 11 bankruptcy protection from its creditors today, announcing plans to restructure under a new owner, ComVest, in a debt-for-equity swap.
The transaction — a pre-packaged Section 363 Chapter 11 sale — will wipe out more than $100 million in debt, said Vincent A. Wasik, Velocity’s chairman and CEO.
Wasik and the company’s current management team will remain in place after the sale, and will own a minority stake in the restructured company, as will former bondholders.
“This restructuring will eliminate the significant debt that has burdened the company for the last few years and turn the company’s balance sheet into a major strength,” said Jose Gordo, a partner at ComVest Group, based in West Palm Beach, Fla.
Velocity will continue operating and expects to complete its restructuring and sale in 30 to 45 days. The company said its employees and contractors will not be affected, and payroll and benefits are guaranteed.
Velocity filed for bankruptcy in U.S. court in Delaware. The company was delisted by the NASDAQ stock exchange in August.
It is the target of several class action lawsuits claiming it misclassified employees as independent contractors.
Contact William B. Cassidy at wcassidy@joc.com.
lol, this company is losing accounts by the boatload every month
CEO Message:
Thank you for your interest in Velocity Express.
Over the past three years, my executive team and I have had the opportunity to lead this company through a dramatic transformation. After hearing our story, I hope you’ll be as excited as I am about the new business model we’ve built and the prospect of things to come for Velocity Express.
The cornerstone of our culture is Real Time Delivery, which we define as delivering what you need, where and when you need it. Motivated by the goal of keeping that promise for our customers, over the past 3 years we have:
Converted our employee driver workforce to an independent contractor model providing greater cost efficiency for Velocity Express and flexibility for our customers
Established the strictest driver qualification standards in the industry
Invested over $20 million to build the industry’s most accurate digital tracking, route optimization and online reporting systems
Developed a “best in class” implementation team whose goal is to ensure seamless transitions
Standardized and centralized operations, including a Customer Experience Center, to provide consistent, high quality customer service nationwide
Improved our internal operations efficiency to strengthen our balance sheet so that we can continue to reinvest in our business
Compiled an outstanding new management team through external hiring and promotions of internal personnel
The culmination of this transformation came with the acquisition of a leading competitor, CD&L, in August, 2006. The resulting critical mass has enlarged our customer base, expanded our work force and provided our shareholders with a strong balance sheet, a strong income statement and strong cash flow.
Although I’m certainly proud of what we’ve accomplished so far, these last three years are just the first three years in the future of a business and an industry that are poised for growth and prepared for change. I hope you will monitor our progress in the years ahead, and I invite you to be a part of it.
Sincerely,
Vincent A. Wasik
www.velocityexpress.com
Providing Real Time DeliveryTM services from more than 150 locations throughout the US, Velocity Express is North America’s largest provider of time-definite regional delivery solutions.
Rode the VEXP express to great profits. Just took longer than I expected--two months.
Looks like the market liked today's news. Great day for VEXP. Did you get back in?
choo
Waiting for definitive news on VEXP. Then I will get back in--assuming it is positive.
Anybody still following VEXP? Conference call is scheduled for tomorrow. Hope they show significant progress with their absorbtion of CDL.
choo
VEXP moving
around $1 seems to be a bottom for this stock, so around those levels are OK, imo.
The ? is Where to buyin?
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