ComVest Gets OK to Purchase 80% of Velocity Express

A bankruptcy judge has cleared the sale of package carrier Velocity Express Corp. to private equity firm ComVest, the companies said.

Under the terms of the sale, ComVest, New York, will take an 80% stake in Velocity, Westport, Conn., in a debt-for-equity swap that will eliminate $100 million in debt, Velocity said.

Vincent Wasik, Velocity’s chief executive officer, will remain with the company.

“With ComVest as our new owner and partner, we believe we will now have the financial and operational support we need to grow our business aggressively and profitably,” Wasik said in a prepared statement.

A federal bankruptcy judge in Delaware handed down the order that finalized the sale on Nov. 3. Velocity filed for bankruptcy on Sept. 24.

Other ComVest companies in the transportation sector include Global Transportation Services, a Seattle logistics firm, and air carrier AirTran Holdings, Orlando, Fla.

ComVest also has been involved in negotiations to purchase truckload carrier Gainey Corp., which has been reorganizing in bankruptcy court for more than a year.