Revenue Drop Drives Velocity Into ComVest's Arms

Law360, New York (September 25, 2009, 12:32 PM EDT) -- Beleaguered package delivery company Velocity Express Corp. has filed for Chapter 11 bankruptcy protection following a steep drop in revenues, opening the door for private equity firm ComVest Investment Partners III LP to take a majority stake in the company through a court auction.

According to an affidavit filed Thursday by Velocity Chairman and CEO Vincent A. Wasik in the U.S. Bankruptcy Court for the District of Delaware, the sale to the private equity firm will eliminate over $103 million in debt that is weighing down...
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