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    • William Moran’s Golden Parachute: United Fleet Director To Get Pay Day While Workers Get Stiffed


    by on Aug 15th, 2011

    photo by Joe Shlabotnik via flickr

    It looks like William Moran, the comptroller for United Fleet will be walking away from his company’s bankruptcy $150,000 richer – while employees are left high and dry.

    In the latest news concerning the Coney Island bus company, Northeast Transit, Inc. – which includes Northeast Buses Inc. and Northern Transit, Inc. – has also declared bankruptcy, filing a Chapter 7.

    This firm, which had a previous relationship renting United Fleet’s buses to fulfill city contracts, has assets which may be bought up, along with United Fleet’s, by potential buyer MV Transit.

    According to the trustee’s proposed auctioneers MYC & Associates and proposed accountants EisnerAmper, LLP, there are three other potential buyers. However none are mentioned by name in the motion except MV Transit.

    Why is this important? According to the motion to sell property brought on by chapter 7 trustee Richard McCord, Director William Moran is set to receive a severance of $150,000 from the asset sale’s proceeds – to be made in three payments.  At the same time, company employees, a number of whom have filed proof of claims as creditors, have apparently not been paid in months.

    Bensonhurst Bean spoke with employee Carl Lahens, who confirmed that his last four paychecks have bounced.

    According to public records, Amalgamated Transit Local 1181, the union representing the stiffed workers, has enlisted three law firms in an attempt to secure some final payments for their members.

    Anyone seeking additional information on this case can access case records at Eastern District of New York Bankruptcy Court (271 Cadman Plaza East) in Downtown Brooklyn, or by setting up a PACER account.

     

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    • InterestedGuy

      That is not what I read. I read the Court documents and understand that ALL of the employees will be paid and their pension and health benefits covered with priority before any creditor get paid. I also understand that if it wasn’t for William Moran, this would never of happened and everyone would be looking for jobs, and that although everyone else has a job, Mr. Moran can’t be an employee or consultant for the future Company.

      • Joe Teutonico

        Aren’t court records great! On top of telling me no employees have been paid, even though Moran’s guaranteed payment at closing, they also say that the attorney of record for United Fleet, Todd Duffy & Dennis Nolan of ANDERSON KILL & OLICK, P.C., submitted a motion to withdraw as counsel and it was granted.
        I wonder why Moran’s lawyers walked out so quickly… seems to me they might be angry at him about something… Care to elaborate, guy?

        • InterestedGuy

          Todd Duffy was the Attorney on record for the USA United Companies while Moran’s companies were Northeast entities. Moran’s Attorney did not walk out. This appears to be a very complicated case. Furthermore, an Attorney is not only not needed under a Chapter 7 transition but would not be paid, as the Chapter 7 trustee is the Attorney for the estates.