Modern Continental asks court to order state parties to make settlement payment

By Caroline Salls

Pittsburgh, March 11 - Modern Continental Construction Co., Inc. asked the U.S. Bankruptcy Court for the District of Massachusetts to order a group of Massachusetts state entities to comply with an August 2008 claims settlement and release a $3.69 million settlement payment to the company, according to a Wednesday court filing.

The parties to the settlement agreement are Modern Continental and the Commonwealth of Massachusetts, through the Massachusetts Highway Department, the Massachusetts Turnpike Authority and the Massachusetts Bay Transportation Authority.

Under the settlement, Modern Continental said the payment in question could not be set off against amounts owed by the company to the state entities.

However, the company said the state parties are withholding a large portion of the settlement payment in connection with direct-pay claims.

As a result, Modern Continental said the state parties are in breach of the settlement agreement.

Modern Continental, a Dedham, Mass., contractor, filed for bankruptcy on June 23, 2008. Its Chapter 11 case number is 08-14558.

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