November 6, 2009
Court approves sale following a highly contested sale hearing and a multi-party settlement among ComVest, Velocity and representatives of its unsecured creditors.
On November 3, the United States Bankruptcy Court for the District of Delaware approved the sale of the assets of package delivery company Velocity Express Corporation to a subsidiary of ComVest Investment Partners III, L.P., represented by Willkie. The Court approved the sale following a highly contested sale hearing and a multi-party settlement among ComVest, Velocity and representatives of its unsecured creditors. Pursuant to the deal, ComVest will become the new majority owner of Velocity's business, freeing the company of more than $100 million in debt. Velocity filed for Chapter 11 protection in September. Willkie assisted ComVest with the bankruptcy and litigation aspects of the transaction. Velocity Express has one of the largest nationwide networks for regional, time definite, ground delivery service. The ComVest Group is a leading private investment firm focused on providing debt and equity solutions to lower middle-market companies with enterprise values of less than $350 million. The matter was handled by partner John Longmire with the assistance of partner Brian O'Connor and associate Sameer Advani.