In the most recent developments in the Bouchard Transportation Co, Inc. bankruptcy case, in an order signed February 26, U.S. Bankruptcy Judge David S. Jones ordered that Morton S. Bouchard, III “shall be, and hereby is, immediately removed from his positions as chief executive officer and director” of the company.
Judge Jones noted in his order that Matthew Ray of Portage Point Partners LLC had accepted appointment as chief restructuring officer (CRO) of the debtors (Bouchard Transportation Co.) and ordered that “the CRO shall be, and hereby is, empowered with exclusive and complete authority to act for and on behalf of the Debtors with respect to matters arising out of or relating to the Debtors and/or the Chapter 11 Cases. …”
On March 1, Bouchard Transportation Co. Inc (as debtors) filed an Emergency Omnibus Motion With Respect To Cash Management And Vessel Operations.
The motion requested that:
- Matthew Ray, as chief restructuring officer (“CRO”) of the Debtors, is authorized to act on behalf of the Debtors with respect to the Bank Accounts (as defined in the Cash Management Order) and any and all banking transactions and related matters;
- The Cash Management Banks (as defined in the Cash Management Order) are authorized and directed to (i) remove Morton S. Bouchard, III as an authorized signatory with respect to the Bank Accounts, (ii) add Matthew Ray, in his capacity as CRO, as an authorized signatory with respect to the Bank Accounts, and (iii) remove any online access of any party other than Mr. Ray; and
- The Debtors are authorized to transfer the barge B. No. 260 to the “Homeport” location maintained by Billybey Marina Services, LLC, and enter into related agreements in the ordinary course of business and on usual and customary business terms. Jurisdiction and on usual and customary business terms.
In relation to the bank accounts, the filing notes that “As of the Petition Date, the Debtors’ former chief executive officer was the only authorized signatory on the Debtors’ Bank Accounts” and that some of the banks “have requested that the Debtors obtain clear authority to replace the former authorized signatory with the CRO as authorized signatory on the Bank Accounts. The Debtors request entry of an order explicitly authorizing and directing the Cash Management Banks to do so. Additionally, the Cash Management Banks should ensure that Mr. Ray is the sole party with online access to the Bank Accounts.”