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Velocity Express assets sold to ComVest
By CCJ Staff
Velocity Express Corp., a provider of time-definite regional delivery solutions, announced that the sale of the company's operating assets to a subsidiary of private investment firm ComVest Investment Partners was approved by the U.S. Bankruptcy Court for the District of Delaware pursuant to Section 363 of the U.S. Bankruptcy Code.
“This is a momentous event in the history of our company," says Vincent A. Wasik, chairman and chief executive officer of Velocity Express, based in Westport, Conn. "With ComVest as our new owner and partner, we believe we will now have the financial and operational support we need to grow our business aggressively and profitably. We are dedicated to continuing to provide excellent service to our customers, as well as a dynamic and rewarding work environment for our employees and independent contractors.”
The sale order confirming the court’s approval was entered on Nov. 3 following a post-petition auction process and a global settlement by Velocity with its unsecured creditors. Pursuant to the terms of the sale, ComVest will become the company’s new majority owner, and the company’s balance sheet will be deleveraged significantly.
"We are committed to making Velocity a dominant logistics services company," says ComVest partner Jose Gordo. "With our support, we believe that the company will now have one of the strongest balance sheets in its industry, positioning it optimally to provide continuing top-quality service to its solid existing customer base and to target new significant business development opportunities from large customers looking for customized, efficient logistics solutions. We are also optimistic that our extensive experience in the transportation and logistics industry and the operational contributions we intend to make will yield positive results for the company, and its customers, employees and independent contractors.”
Wasik says the transaction will reduce the burden of the company's legacy liabilities by eliminating more than $100 million of debt, creating a financially stronger, well capitalized company. "With a better financial position, we will continue to be able to pursue large business development opportunities, and increase our investment in technology and services to benefit our valued customers," he says. "Thanks to the continued support and hard work of our more than 3,300 dedicated employees and independent contractors, we expect this transition to be seamless to our customers.” |
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