Arctic Express files for bankruptcy
Nov 3, 2003 12:00 PM, from staff and wire reportsArctic Express, based in Hilliard OH, filed a voluntary petition for reorganization under Chapter 11 of the bankruptcy code Oct 31, 2003, in federal court in Columbus OH.
Richard Durst, the firm's president, says the action was taken in response to a six-year legal dispute with the Owner-Operator Independent Drivers Association. Debtor-in-possession financing has been arranged with Arctic's primary lender, Textron Financial, and Durst says the company will continue normal operation and full service to all customers during the proceeding. A plan will be filed quickly to provide for full payment of all legitimate claims, and the company has arranged for all employees and contractors to be paid in full and on time during the reorganization, Durst says.
The legal battle with OOIDA has cost the company almost $700,000 and drained resources that would otherwise be used to pay creditors, he says. Arctic wishes to pay operators fairly without the continuing burden of litigation costs, Durst says. D&A Associates, an equipment leasing company affiliated with Arctic, has also filed for Chapter 11 protection. Both companies are represented by Spencer Fane Britt & Browne LLP, a Missouri law firm.