Celadon sues repo company for holding equipment ‘for ransom’

Celadon says that the company misrepresented itself as a legitimate surrender site for equipment.

Celadon

Now-defunct trucking company Celadon Truck Group has filed suit against a tow and repossession company who they say held dozens of pieces of their equipment ‘for ransom.’

On February 6, Celadon filed suit in the U.S. Bankruptcy Court for the District of Delaware against North Carolina-based Triangle Recovery Services.

The lawsuit accused Triangle Recovery Services of seizing about 50 Celadon trucks and trailers and holding them “for ransom” unless Celadon paid out recovery fees.

The suit alleges that Triangle Recovery Services misrepresented itself as a surrender site for Celadon equipment after the company went bankrupt and out of business.

The lawsuit also accuses Triangle Recovery Services of advertising a cash reward for information leading the recovery of abandoned Celadon equipment.

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After the suit was filed, the court granted Celadon a temporary restraining order and injunction against Triangle Recovery Services.

On December 9, 2019, Celadon filed Chapter 11 bankruptcy protection and immediately announced that they were closing the company permanently in the wake of a multi-year federal investigation into mismanagement of the company’s financial reporting. The sudden closure left thousands of Celadon drivers out of a job and many drivers reported abandoning their equipment.

Celadon was founded in 1985 and was the largest provider of international truckload services in North America, operating 3,300 tractors and 10,000 trailers at the time of the bankruptcy.