Creditors Oppose Union Request to Delay Greyhound Hearing
DALLAS (AP) _ Creditors of Greyhound Lines Inc. voted late Wednesday to oppose striking bus drivers’ request for a delay of the company’s bankruptcy confirmation hearing.
The union representing 5,000 striking drivers last week asked a judge to postpone next Tuesday’s confirmation hearing for a month, giving more time for a Dallas investment group to prepare a competing reorganization plan.
U.S. Bankruptcy Judge Richard Schmidt of Corpus Christi is scheduled to hear the request Friday in McAllen.
David Snodgrass, a Dallas attorney who represents Greyhound’s official creditors committee, said the group voted to oppose the union’s motion after an hourlong conference call.
The committee’s opinion is expected to carry considerable weight with Schmidt since more than 80 percent of creditors previously voted to support the company’s plan of reorganization.
The creditors will file a document with the judge Thursday that discusses the reasons for the decision, Snodgrass said.
The vote’s outcome may have been different if the investment group, led by Richmont Corp. of Dallas and former Greyhound chairman James Kerrigan, had presented a ″meaningful″ buyout proposal, Snodgrass said.
The Amalgamated Transit Union filed the continuance motion with Schmidt last Friday because Richmont has no standing in the case.
″Richmont is interested in making a proposal which would enhance the distribution to unsecured creditors,″ which includes the striking drivers, the motion said.
″We’re not surprised by the outcome of the vote. We’re a bit bemused by the creditors’ resistance to waiting 30 days for a better deal,″ said Dwight Smith, a spokesman for Richmont, an investing affiliate of Dallas-based cosmetics giant Mary Kay Corp.