Trucking company owned by Paul McCartney’s in-laws goes bankrupt, closes Cicero terminal
Updated 6:14 PM;
Posted 4:45 PM
Hmmm. I wonder what "Paul McCartney" (i.e., Fake Paul)'s in-laws were transporting in their trucks.
Sauce - https://www.google.com/url?sa=i&source=web&cd=&ved=2ahUKEwiXlOa4tL_gAhXxSt8KHX8dDhEQzPwBegQIARAC&url=https%3A%2F%2Fwww.syracuse.com%2Fbusiness%2F2019%2F02%2Fmajor-trucking-company-goes-bankrupt-closes-cicero-terminal.html&psig=AOvVaw1seDdVfY4J5d7rJa-JQSl3&ust=1550377513192883
By Rick Moriarty | rmoriarty@syracuse.com
Cicero, N.Y. – New England Motor Freight Inc. shut down without warning this week, closing its terminals and laying off workers throughout the Northeast, including about 60 in Cicero.
The company, based in Elizabeth, N.J., voluntarily filed for relief under Chapter 11 of U.S. Bankruptcy Law on Monday, listing tens of millions of dollars in debt. Ten other affiliated companies also filed bankruptcy.
Chapter 11 is normally used to protect a company from creditors while it reorganizes its finances. However, instead of presenting a reorganization plan, New England Motor Freight said it planned to use the proceedings “to facilitate an orderly wind-down of its operations.”
“Upon the recommendation of its advisers, the company has determined that a Chapter 11 proceeding is the best mechanism to maximize the value of its assets for the benefit of its employees and various creditor constituencies,” the company said in a statement.
“We have worked hard to explore options for New England Motor Freight, but the macro-economic factors confronting this industry are significant," Vincent Colistra, a senior managing director with Phoenix Management Services and chief restructuring officer for the company, said.
Phoenix Management Services is serving as the company’s financial and restructuring adviser.
Former Beatle Paul McCartney visited the company’s Cicero terminal in 2012. McCartney’s wife, Nancy Shevell, is the daughter of the company’s owner, Myron Shevell, and is a vice president of the company. She was among the company officers who signed the bankruptcy filing.
New England Motor Freight lists 39 trucking terminals in 16 Northeast states, including eight in New York (Cicero, Albany, Bethpage, Binghamton, Buffalo, Falconer, Newburgh and Rochester).
Ronald Katich, of Kirkville, a driver for the company for 16 years, said the approximately 40 drivers and 20 support staff who worked in the company’s terminal at 7201 Schuyler Road in Cicero were given no advance warning of the shutdown.
He said the company lost a major contract shipping John Deere products a year ago, but that its sudden closing came as a shock.
“Nobody saw this coming,” he said.
He said the company promised workers only two weeks’ severance pay and insurance coverage up to April 11.
The company, founded in 1977, employed approximately 4,000 people, Katich said.
Company representatives did not return a phone call from Syracuse.com seeking comment Friday.
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