Court OKs more pay to Celadon drivers


A federal bankruptcy court on Friday, Jan. 3 stamped final approval on Celadon’s request to pay drivers at least partial compensation amidst its ongoing Chapter 11 bankruptcy proceedings.

Hedging down from its original request of $5.4 million, the defunct fleet will be allowed to pay $4.6 million in owed wages to drivers and other employees, with $900,000 set aside for owed compensation to independent contractors — up from the original $528,000 proposed for contractors in its original court request in mid-December. Another $3.4 million was listed for unpaid compensation to drivers and other personnel, and $300,000 was listed for owed employee benefits.

The court ruling authorizes Celadon to pay owed wages — but does not require the company to pay. Court documents do not reveal what percentage of owed compensation the $4.6 million represents.

The fleet suddenly ceased operations Dec. 9 after failing to secure financing to continue operating.