Gainey reveals details of new company

GRAND RAPIDS, Mich. (WOOD) - Gainey Sr. will be paid more than what the court and creditors agreed to during bankrupcy, he told 24 Hour News 8 on Thursday. He has been receiving $350,000 a year.

However, once the company is sold and emerges from bankrupcy, Gainey Sr. will be making much more than that - almost what he made when he was the majority owner.

Gainey Sr. would not say how much of his own money he is putting into the new company, nor would he say what the value of the new company will be.

He also wouldn't say how much the creditors are going to lose as a result of the sale of the company - he said that hasn't been decided yet.

Gainey Sr. went on to say he has $6 to 7 million in outstanding pledges to charities in West Michigan that he has not been able to honor. He is hopeful he will be able to fulfill those pledges as money comes in, he told 24 Hour News 8.

One of the major commitments he has made is to be the leading donor at what was going to be the Gainey Family YMCA.

If he's able, he would attempt to assume the lead donor position again, if it's available.

To his critics who say he took loans of millions for himself and family members without paying them back, Gainey Sr. said: He could have paid himself dividends from the company he owned, but took the loans instead to keep equity in the company, even though he never intended to pay the loans back.

Gainey Sr. said all the companies that were in bankruptcy will emerge with this sale to Najafi. They will all operate as they were.

In regards to the damage to Gainey Sr.'s name and reputation, he said he's not concerned. He has a thick skin after working in the trucking business for 47 years.

Representatives of Najafi want Gainey Sr. to aggressively grow the new Gainey Corp. by acquiring other trucking firms and merging them into Gainey.

The next court date is Aug. 26, when the bankruptcy judge is expected to approve the sale.