A judge ruled that IdleAire Technologies, Knoxville, Tenn., can go ahead with a planned sale.
The company, which provided idling-reduction services through truckstops, filed for Chapter 11 bankruptcy May 12 after net losses of $93.44 million in 2007 and after months of intense efforts to obtain alternative financing failed.
If no qualified bids are received by July 1, the company can continue with the $10 million sale to the proposed buyer, a newly created company made up of members holding the majority of secured notes, reported Bloomberg. If more than one bid is received, there will be an auction on July 3.
The U.S. Trustee (an arm of the U.S. Justice Department that oversees bankruptcy cases) had challenged the sale, saying the proposed purchase price of $10 was too low - less than 5 percent of the reported value of the company assets.
In a June 13 hearing, U.S. Bankruptcy Judge Kevin Gross denied the request for an examiner to probe the planned sale.
The bankruptcy court also gave final approval for $25 million in secured financing.
The judge also authorized establishing a severance program for lower-level employees that won't cost more than $300,000, Bloomberg reported. He will decide in a June 24 hearing whether to approve a bonus incentive program for 22 senior executives that would cost up to $505,000.
(For more on the IdleAire situation and what went wrong, plus a look at other idling reduction options, see the June issue of Heavy Duty Trucking magazine.)
The company, which provided idling-reduction services through truckstops, filed for Chapter 11 bankruptcy May 12 after net losses of $93.44 million in 2007 and after months of intense efforts to obtain alternative financing failed.
If no qualified bids are received by July 1, the company can continue with the $10 million sale to the proposed buyer, a newly created company made up of members holding the majority of secured notes, reported Bloomberg. If more than one bid is received, there will be an auction on July 3.
The U.S. Trustee (an arm of the U.S. Justice Department that oversees bankruptcy cases) had challenged the sale, saying the proposed purchase price of $10 was too low - less than 5 percent of the reported value of the company assets.
In a June 13 hearing, U.S. Bankruptcy Judge Kevin Gross denied the request for an examiner to probe the planned sale.
The bankruptcy court also gave final approval for $25 million in secured financing.
The judge also authorized establishing a severance program for lower-level employees that won't cost more than $300,000, Bloomberg reported. He will decide in a June 24 hearing whether to approve a bonus incentive program for 22 senior executives that would cost up to $505,000.
(For more on the IdleAire situation and what went wrong, plus a look at other idling reduction options, see the June issue of Heavy Duty Trucking magazine.)
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