Kal Freight’s closure in the coming weeks will not be under a Chapter 7 bankruptcy action, as had been feared by some of the company’s creditors, but will be a wind-down through the existing Chapter 11 proceedings.
That’s one of the main takeaways from the binding settlement term sheet agreed to Wednesday in the U.S. Bankruptcy Court for the Southern District of Texas. All the key creditors of the truckload carrier have signed on to the pact, and Bankruptcy Court Judge Christopher Lopez approved...