Velocity Express Sets Restructuring Plan

Velocity Express Corp. said Thursday it has set an agreement with private equity firm ComVest Investment Partners III, in which a unit of ComVest would become a majority owner of the package delivery firm.

The transaction would be done through an exchange of debt held by ComVest for equity in Velocity following the company’s Chapter 11 bankruptcy filing that was made Thursday.

Velocity said it intends to reorganize under Section 363 of the Bankruptcy Code.

With annual revenue of about $200 million, Velocity was the seventh largest package/courier company in the 2009 Transport Topics 100 listing of U.S. and Canadian for-hire companies.