A 75-year-old Iowa motor carrier that filed for bankruptcy protection in June could be forced to liquidate.
H&W Motor Express, Dubuque, Iowa, filed for Chapter 11 bankruptcy protection in June. Now, reports the Dubuque Telegraph Herald, the U.S. Trustee’s office in Cedar Rapids, Iowa, has filed a motion asking the bankruptcy court to convert the company’s bankruptcy status to Chapter 7, or full liquidation.
The company suspended operations when it filed for bankruptcy and has not been able to resume operations. It has not been able to get operational financing and was recently evicted from its longtime headquarters. According to the bankruptcy motion, the company also had its insurance coverage cancelled for nonpayment of premiums and has been unable to get replacement coverage. The motion also says H&W has not responded to repeated requests for financial information ordered by the creditors’ committee. The paper reports that H&W has millions in debt, including more than $1 million due to the IRS.
Until last year, H&W was a less than truckload company owned by two families that founded it in 1927. In January 2001, Roger D. Waldner bought the company from the families. According to published reports, the terms of the sale called for the families to provide up to $2.2 million in cash if the company needed it within the five years following the sale. At the time of the filing, Waldner said the families had not lived up to that agreement and he had no choice but to put the issue in bankruptcy court.
If the company is liquidated, says a local Teamsters officials, it probably won’t result in much money for debts. The company apparently owns no real estate. The Teamsters say if necessary, they will go after the current and former owners personally in order to ensure pensions are paid.
H&W Motor Express, Dubuque, Iowa, filed for Chapter 11 bankruptcy protection in June. Now, reports the Dubuque Telegraph Herald, the U.S. Trustee’s office in Cedar Rapids, Iowa, has filed a motion asking the bankruptcy court to convert the company’s bankruptcy status to Chapter 7, or full liquidation.
The company suspended operations when it filed for bankruptcy and has not been able to resume operations. It has not been able to get operational financing and was recently evicted from its longtime headquarters. According to the bankruptcy motion, the company also had its insurance coverage cancelled for nonpayment of premiums and has been unable to get replacement coverage. The motion also says H&W has not responded to repeated requests for financial information ordered by the creditors’ committee. The paper reports that H&W has millions in debt, including more than $1 million due to the IRS.
Until last year, H&W was a less than truckload company owned by two families that founded it in 1927. In January 2001, Roger D. Waldner bought the company from the families. According to published reports, the terms of the sale called for the families to provide up to $2.2 million in cash if the company needed it within the five years following the sale. At the time of the filing, Waldner said the families had not lived up to that agreement and he had no choice but to put the issue in bankruptcy court.
If the company is liquidated, says a local Teamsters officials, it probably won’t result in much money for debts. The company apparently owns no real estate. The Teamsters say if necessary, they will go after the current and former owners personally in order to ensure pensions are paid.
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