AF Offers $6M for NationsWay Hub

COMMERCE CITY, Colo. (AP) - American Freightways Corp. has offered $6 million for the Commerce City hub of the beleaguered NationsWay Trucking, which filed for bankruptcy May 20.

NationsWay lawyer Philip Rudd said the Harrison, Ark., company could face other bidders at the auction in federal bankruptcy court in Phoenix Sept. 7., but he said the company has agreed to sell to American Freightways, subject to the court's approval.

NationsWay's hubs in Phoenix and Harrisburg, Pa., will also go on the block, to be auctioned to Consolidated Freightways, another trucking giant.

The sale of terminals across the country could net as much as $17 million for the estate, officials have said.

Before it shut down in May and began liquidating its assets under Chapter 11 bankruptcy, NationsWay was the nation's largest privately held trucking company. Creditors have asked the court to convert the Chapter 11 reorganization into a Chapter 7, for a total liquidation.

The company has not yet issued final paychecks for most of its 3,500 employees, but the remaining 75 NationsWay workers have been given weekly bonuses to continue working as the company clears the book of assets.

Since the company filed for bankruptcy, NationsWay founder Jerry McMorris, co-owner of the Colorado Rockies baseball team, has tried to distance himself from the entire process. That leaves Chief Financial Officer Harold Roth in charge, who was unavailable for comment this week on the sale of the Commerce City property.

The employees rank as unsecured creditors in bankruptcy court, which means other creditors would get their money first. But under Colorado law, they could be paid by officers of the company, according to attorneys who are suing McMorris and other corporate officers.