About 1,300 NationsWay employees owed nearly $5 million in unpaid wages have asked a federal court judge to convert the failed trucking company's bankruptcy case to Chapter 7 liquidation.

According to the chairman of the unsecured creditors committee, converting to Chapter 7 would place employees higher up in the line of creditors than they are under the Chapter 11 plan than the Phoenix company has proposed.
However, Judge Sarah Sharer Curley ordered the company and its unsecured creditors to re-attempt to negotiate a settlement. If a compromise is not reached, Curley is likely to convert the case.