Velocity Express Bankruptcy – Professionals Dominate 30 Largest Unsecured Creditors

Velocity Express Corporation (“Velocity Express”) and its 12 affiliates who also filed bankruptcy on September 24, 2009 (the “Debtors”) have requested authority to file a consolidated list of the 30 largest unsecured creditors (the “Top Unsecured Creditor List”) in lieu of a separate list for each of the Debtors.  The Top Unsecured Creditor List truly is remarkable – it includes 7 law firms owed a total of $2,553,339.  In addition, Houlihan Lokey Howard & Zukin Capital Inc. is sixth on the list at $645,345.  The complete Top Unsecured Creditor List is provided below.

Velocity Express Bankruptcy – Debtors, Petitions, Background Information

Velocity Express Corporation (“Velocity Express”) and 12 affiliated entities (“Debtors”) filed petitions on September 24, 2009 in the Bankruptcy Court for the District of Delaware for relief under Chapter 11 of Title 11 of the United States Code.  The Debtors have moved for joint administration of the Debtors’ cases under case number 09-13294.  The Debtors’ petitions and the first day motions are supported by the declaration of Vincent A. Wasik, Chief Executive Officer (the “Wasik Declaration”).  The Wasik Declaration clearly identifies the direction of the bankruptcy – the immediate rejection of facility leases and a quick 363 sale.