Former United Road Towing granted Chapter 11 bankruptcy case dismissal

By Caroline Salls

Pittsburgh, June 30 – Old Towing Co., formerly United Road Towing, Inc., was granted approval of its motion for dismissal of its Chapter 11 bankruptcy case, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

Old Towing said its asset sale resulted in satisfaction in full of its debtor-in-possession financing and the payment or assumption of administrative expenses accruing from post-bankruptcy operations, section 503(b)(9) claims and pre-bankruptcy priority tax claims.

In addition, the company said the purchaser has agreed to assume some pre-bankruptcy general unsecured claims, resulting in a modest recovery to the holders of those claims, and to provide other value to unsecured creditors in the form of cure amounts paid on assumed contracts and the purchase and waiver of avoidance actions.

After the closing, Old Towing said the only funds remaining in the estates are wind-down funds, which constitute the cash collateral of the company’s pre-bankruptcy term loan agent.

As a result, the company said it sought dismissal of the cases and related relief to complete the wind down of its affairs.

United Road is a Mokena, Ill.-based towing, recovery, impound and vehicle management solutions company. The Chapter 11 case number is 17-10249. It filed for bankruptcy on Feb. 6.

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