Mort Bouchard III is out as chief executive of Bouchard Transportation as the US articulated tug-barge operator continues to work its way through bankruptcy proceedings.
US bankruptcy judge David Jones ordered Bouchard — the fourth member of his family to lead the company — to be removed from his post, according to papers filed on 26 February. At the same time, Jones appointed Matthew Ray of Portage Point Partners as chief restructuring officer.
The judge's order — which also removed Bouchard as a director — gave Ray wide-ranging powers to manage Bouchard Transportation through its restructuring.
"[Ray is] empowered with exclusive and complete authority to act for and on behalf of [Bouchard Transportation] with respect to matters arising out of or relating to [Bouchard Transportation] and/or the chapter 11 cases," the judge wrote.
The order is "without prejudice to Mr Bouchard's right to seek appropriate relief from the court".
The filing also directs the company to appoint two new independent directors to serve during bankruptcy proceedings.
Bouchard Transportation filed to reorganise its business in September 2020 in the US bankruptcy court for the Southern District of Texas.
The company hoped the protection would provide the ailing company some "breathing room" after a deadly explosion aboard one of its barges in 2017 led to issues obtaining key safety documents.
Unable to trade its fleet without papers known as documents of compliance, Bouchard Transportation suffered three consecutive years of losses and dozens of lawsuits from creditors looking to collect on unpaid bills.
Even after the Long Island-based company received funds as part of its preliminary debtor in possession financing, lender Wells Fargo Securities argued it had not returned to normal operations as required by the court and questioned its ability to successfully complete bankruptcy.
At one point, Bouchard Transportation sued the US Coast Guard and ABS to force a review of their renewed safety plan and to secure the documentation. But court papers filed last month say it is now working with Bureau Veritas to class its vessels.
The company is said to have passed an audit with the French classification society and the two are working together to get Bouchard Transportation's vessels operating again.
Neither Ray nor Bouchard Transportation returned a request for comment.
The company was founded in New York in 1918 by Bouchard III's great-great-grandfather, Frederick Bouchard.
Bouchard III took over in 1992 and Bouchard Transportation credits him with building several double-hulled barges and expanding the company to include operations on the US east, west and Gulf coasts as well as in the Great Lakes.
