Morton S. Bouchard, III, CEO of ATV operator Bouchard Transportation since 1992, has been deleted of his post by a Texas bankruptcy court.
Bouchard Transport faced a series of suit and federal application Actions from the mortal explosion aboard the barge B. No. 255 in October 2017, and he deposit for bankruptcy protection at the end of 2020. The company is expected to come out of bankruptcy in April, unlocking access to $ 30 million in debtor-in-charge (DIP) financing.
February 24, Transport Bouchard Told the Texas court administering the case he was in discussions with his DIP lender about accessing new emergency loan installments. The loans would cover operating expenses and payroll, and help meet “critical cash needs,” the company said.
At a status conference the next day, counsel for Bouchard Transport told the court that there were still disagreements with the lender over the terms of the emergency loan. The lawyer also noted that if Bouchard did not come to an agreement, the company had uncertain prospects of meeting the payroll next week. Judge David R. Jones interrupted the presentation to say that he remove Morton Bouchard from his position as CEO, effective immediately.
In Bouchard’s place, the parties to the bankruptcy case appointed Matthew Ray of Portage Point Partners to take over as Head of Restructuring (CRO). The judge agreed, ordering Ray to preserve Bouchard Transport for the benefit of his employees and to report any attempt at obstruction. “If someone threatens you, if someone is hiding information, I want to know it immediately … and there will be a hammer like no one has ever seen.” mentionned Judge Jones.
Under new management, Bouchard Transport and its creditors are committed to working to preserve the value and jobs of the venerable ATB company. “We’re all going to do everything we can to get out of this with an operating company,” Jones said at a follow-up conference Tuesday.