The Gold Weems bankruptcy and restructuring group successfully represented Moreaux Transportation Services, Inc. ("MTS") in obtaining confirmation of a Chapter 11 Plan of Reorganization in the United States Bankruptcy Court for the Western District of Louisiana, Lake Charles Division. MTS provides logistics solutions for the petrochemical and aggregates industries in southeast Texas and southwestern Louisiana, with terminals in Orange, TX and Iowa, LA. The company was hard hit by downturns in the oil and gas sector, Covid-19, and hurricanes that struck the region in the fall of 2020. The confirmed plan reorganized the debts secured by trucks and trailers as well as debts owed to merchant cash advance lenders, while the sole shareholder retains his equity in the company.
Confirmation of the plan in this case marks another success of the firm’s practice in the area of reorganization of businesses dependent on the oil and gas sectors of the economy. Additionally, due to the Covid-19 pandemic, the case was prosecuted in court virtually with no in-person hearings being held for the entirety of the case.
Bradley L. Drell and Heather M. Mathews were the primary attorneys in this reorganization. “By leveraging the new provisions of the Small Business Reorganization Act, as modified by the CARES Act, we were able to obtain an outstanding result for the client and save jobs during this precarious time for our economy,” Drell said.