A federal judge of the U.S. Bankruptcy Court for the Northern District of Oklahoma in Tulsa has allowed Arrow Trucking's bankruptcy trustee Patrick Malloy III to hire Stueve Siegel Hanson, a Kansas City, Mo.-based law firm
, according to reports by Tulsa World. The firm will help in Malloy's investigation of Transportation Alliance Bank's claims against the carrier.
Utah-based TAB, Arrow's main creditor, filed suit against the carrier, alleging fraud and racketeering. The suit also alleges that during 2009, company executives received "extremely excessive and over-market salaries relative to their job duties." The Utah bank said in the suit it became concerned last July about possible irregularities in documents. Things finally reached a head Dec. 21, when TAB shut off the company's credit line and canceled its fuel cards.
At that time, Arrow laid off all 1,400 employees without notice, turning off the phones, shutting down the website, and shutting down headquarters. Many drivers first found out when their fuel cards no longer worked, and many were stranded without a way to get home right before Christmas. Arrow filed a petition for Chapter 7 bankruptcy liquidation on Jan. 8.
Malloy has worked with the law firm on other cases, including the Great Plains Airlines case, the World reports.
In Malloy's motion to hire the law firm, he said he's still investigating the extent and value of TAB's claims. In its suit against Arrow, the bank claims Arrow executives defrauded $12.5 million.
"TAB represents one of the largest creditors, and they are asserting a lot of money is owed (them)," Malloy told the World. "We have to fully investigate the facts and circumstances surrounding their claims."
, according to reports by Tulsa World. The firm will help in Malloy's investigation of Transportation Alliance Bank's claims against the carrier.
Utah-based TAB, Arrow's main creditor, filed suit against the carrier, alleging fraud and racketeering. The suit also alleges that during 2009, company executives received "extremely excessive and over-market salaries relative to their job duties." The Utah bank said in the suit it became concerned last July about possible irregularities in documents. Things finally reached a head Dec. 21, when TAB shut off the company's credit line and canceled its fuel cards.
At that time, Arrow laid off all 1,400 employees without notice, turning off the phones, shutting down the website, and shutting down headquarters. Many drivers first found out when their fuel cards no longer worked, and many were stranded without a way to get home right before Christmas. Arrow filed a petition for Chapter 7 bankruptcy liquidation on Jan. 8.
Malloy has worked with the law firm on other cases, including the Great Plains Airlines case, the World reports.
In Malloy's motion to hire the law firm, he said he's still investigating the extent and value of TAB's claims. In its suit against Arrow, the bank claims Arrow executives defrauded $12.5 million.
"TAB represents one of the largest creditors, and they are asserting a lot of money is owed (them)," Malloy told the World. "We have to fully investigate the facts and circumstances surrounding their claims."
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