A federal bankruptcy court on Friday 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 securing financing to continue operating. Read more about Celadon’s closure in the links below.
