December 24 , 2005

SALE OF FIRM'S ASSETS PROPOSED – RECEIVER ACTING IN WAKE OF JULY CRASH

By David Owens - Hartford Courant
Trucks and other equipment owned by American Crushing & Recycling would be auctioned in February to pay off debts and prevent erosion of assets due to interest and other payments under a plan presented to a judge Friday.

Matthew K. Beatman, the Bridgeport lawyer appointed as receiver of the trucking company whose out-of-control dump truck caused a horrific crash July 29 at the base of Avon Mountain, presented his plan in a motion filed Friday in Superior Court in Hartford.

Four people died and 19 were injured in the crash, which remains under investigation.

Beatman asked the judge for permission to deal with other company matters, such as paying bills and negotiating to reduce a fine against American Crushing, of Bloomfield, by the U.S. Internal Revenue Service for using improper fuel at the time of the accident.

Beatman was appointed receiver of American Crushing in October, after owner David Wilcox was removed as owner. The step preserves company assets for payment of claims arising from the crash.

"The overriding goal is to maximize the value of the assets so that there will be something there for the injured parties," he said. "There's accruing debt on the property that is secured by liens. Unless the assets get sold quickly, those liens will consume any remaining equity."

Secured creditors are owed nearly $600,000 and would be paid with proceeds of the auction, Beatman said.

He said he thinks the sale of assets will gross $1.2 million to $1.4 million. After auctioneer fees, costs to prepare assets for sale and payment of liens, he estimates a net of $200,000 to $500,000 would be available to pay claims.

Among the items that would be auctioned are dump trucks, bulldozers, front-end loaders, excavators, crushing machines, trailers, generators, tools, welders and spare parts.

"Symbolically, it's important that his assets be liquidated, that he not be seen with his trucks operating on our state roads," said Michael Stratton, a lawyer representing the widow of a man killed in the crash.

A hearing on Beatman's motions is scheduled Tuesday before Superior Court Judge Vanessa L. Bryant in Hartford.

John F. McKenna, a West Hartford lawyer representing Wilcox, the owner, said some of the equipment Beatman wants to auction is Wilcox's personal property and McKenna will ask the judge to return it.

Wilcox also owns the land and buildings in Bloomfield that American Crushing occupied. He leased the property to American Crushing, which was registered as a limited liability company.

"At some point he wants to get back on there so he can start making a living again," McKenna said. "And he wants to identify the items he thinks are his."

The IRS has fined the company $49,170 because the truck involved in the crash had dyed fuel in its tank. Dyed fuel is exempt from highway taxes and is intended for use in off-road equipment, such as construction vehicles. The IRS contends the company used dyed fuel to avoid paying taxes, Beatman said. He hopes to negotiate to get the fine reduced.

In a letter to the IRS appealing the fine, Wilcox blamed the driver killed in the July 29 crash for filling his truck with the wrong fuel.

"He did not speak English well and I'm not sure if he was able to read the pump signs or if anyone told him," Wilcox said. Copyright 2005, Hartford Courant

Copyright 2005, Hartford Courant