Celadon Pays “Nearly 4,000” Terminated Employees As Scheduled

Indianapolis, IN – After a week of wondering and worrying, terminated Celadon Group employees and independent contractors received compensation as scheduled on Friday.

Celadon Group filed for Chapter 11 bankruptcy relief early Monday morning in U.S. Bankruptcy Court for the District of Delaware, Transportation Nation Network (TNN) first reported.

The fallout was immediate as the company reported it would be terminating “nearly 4,000” jobs and ceasing operations at all but one of its subsidiaries as part of the “wind down.”

According to multiple sources with direct knowledge of the situation, Celadon representatives assured employees that work completed through Wednesday, December 11 would be paid as normal on Friday, December 13.


Employees, including drivers, were assured that so long as they complied with management’s orders, which included making final customer deliveries and returning trucks to the appropriate terminals or leasing company, they would receive the compensation owed to them.

At the time Celadon filed for bankruptcy it reported $3,900,000 in unpaid compensation to employees, $528,000 to independent contractors, and $1,015,000 as part of its termination bonus program.

In Celadon’s Chapter 11 filing, the carrier asked the court to authorize it to pay more than $5.4 million in workforce obligations due Friday, December 13.

Tuesday afternoon, United States Bankruptcy Judge Karen B. Owens approved a motion filed by Celadon Group authorizing the company to pay $5,443,000 in workforce obligations.

Celadon successfully secured up to $9,050,000 in additional financing with Blue Torch Finance in order to help meet its workforce obligations.

TNN can confirm payroll did run and administrative and operational personnel, as well as drivers and independent contractors, have received much, and in some cases, all of the compensation owed to them.

A Celadon insider indicates the company will be working to address any “issues” that could have occurred with some employees’ final settlements.


According to a budgeted plan submitted by Celadon and approved by Judge Owens, the carrier was due to pay out $1,903,000 to company drivers, $528,000 to independent contractors, and $1,333,000 to operational and administrative workers, as part of payroll due on Friday.

Additionally, the company budgeted $1,015,000 as part of its termination bonus program, which includes bus tickets home for disaffected drivers, and truck return bonuses.

Multiple drivers TNN has spoken with report being promised a truck return bonus of as much as $500.

A Celadon insider tells TNN that truck return bonuses not paid on Friday’s payroll will be paid on a following payroll.

However, according to the budgeted plan approved as part of the court filing, no additional termination bonus funds are approved beyond Friday’s payroll.

TNN is working to get more information as this story continues to develop.



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