A bankrupt Grand Rapids, MI, trucking company got a new lease on life Thursday, Jan. 8.
The Press News reports a federal judge agreed to allow Gainey Corp. to use the cash it has on hand to pay for day-to-day operations. The approval came after some of Gainey’s biggest creditors agreed to the deal, a move that was a surprise to the court. Those creditors include Wachovia Bank, which says it’s owed nearly $240 million.
Without the use of its cash, some observers say the company probably would have been forced to shut down.
The Grand Rapids Press reported that Judge James Gregg did not act on pending requests to implement more permanent compensation agreements for Gainey Corp. founder and Chief Executive Officer Harvey Gainey or Chief Operating Officer Carl Oosterhouse.
The newspaper reported that in November, Judge Gregg temporarily approved paying CEO Gainey a salary worth $169,300 a year while giving Oosterhouse a salary worth $155,756.
Lawyers for Gainey had requested a $676,000 annual salary while requesting Oosterhouse be paid $650,000.
Gainey Transportation operates 1,154 tractors and 2,830 air ride trailers. The company hopes to return to profitability through the Chapter 11 bankruptcy process.