Judge grants Celadon’s temporary restraining order in equipment ‘ransom’ allegation

February 14, 2020

Land Line Staff

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A federal judge has granted Celadon Group’s motion for a temporary restraining order against a North Carolina-based recovery company that the bankrupt carrier alleges has been illegally seizing its equipment and holding it ransom.

On Thursday, Feb. 13, U.S. Bankruptcy Judge Karen Owens granted Celadon’s motion for a temporary restraining order.

A complaint filed on behalf of Celadon Group in federal bankruptcy court alleges Triangle Recovery Services of Raleigh, N.C., falsely advertised itself as a return site for bankrupt Celadon equipment, and that it “expects to profit from its activities either through refusing turnover to Celadon without payment of fees or through the sale of the equipment.”

The complaint claims that Triangle Recovery advertised a link on its website labeled “Celadon Truck Return” and that visitors who click on that tab to make an appointment to return the equipment to Triangle. The website link has since been taken down.

Celadon’s attorneys claim that once Triangle Recovery gained possession of Celadon’s vehicles, it would then “hold the vehicles ransom” until Celadon agreed to pay its fees. The complaint estimates that Triangle Recovery has approximately 50 trucks and trailers belonging to Celadon. The complaint also states that Celadon used geofencing technology to track some of its trailers to the recovery company’s lot.

“Defendant’s ransom demands are now causing the debtors, who have very shallow resources, to direct these scant resources to recovering these vehicles,” the complaint states.

The order prohibits Triangle Recovery from advertising its services to repossess Celadon assets and is prohibited from “further repossession actions” involving any of the company’s assets.

A hearing in the case is scheduled for 10 a.m. on Wednesday, Feb. 26.

Celadon Group filed for Chapter 11 bankruptcy protection in December.

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