Celadon Group’s Chapter 11 bankruptcy cases dismissed by court

By Sarah Lizee

Olympia, Wash., March 31 – Celadon Group, Inc.’s Chapter 11 bankruptcy cases have been dismissed, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company asked the court to close the cases and approve a settlement between itself, secured creditors Blue Torch Finance, LLC and Luminus Energy Master Fund, Ltd., and the official committee of unsecured creditors. The settlement was approved on March 25.

The company said in its motion that upon approval and implementation of the settlement agreement, the debtors will no longer have any assets that could generate value for the benefit of the debtors’ administrative claims, priority claims or general unsecured claims.

As such, the company will be able to move forward with the dismissal and closure of the debtors’ Chapter 11 cases.

Under the terms of the settlement, the official committee of unsecured creditors will withdraw its standing motion to prosecute certain claims on behalf of the debtors’ estates and extend its challenge period.

On the effective date, the debtors and the secured lenders will be deemed to have waived all preference actions.

Counsel to the committee will be entitled to seek catch-up payments in the amount of $90,458.43 for accrued legal services provided to the committee and related expenses.

The U.S. trustee fees accrued and payable through the first quarter of 2021 will be paid, fees of the estates’ and committee’s professionals will be paid from a $133,000 carve-out, and the Chapter 11 cases will be closed.

Except for the amount necessary to fund the carve-out, administrative agent Blue Torch Finance, LLC will credit bid its secured claims in exchange for all rights, title and interest in and to all of the debtors’ remaining property that constitutes collateral and any and all other assets and properties owned by the debtors, which will vest in Luminus Energy Master Fund, Ltd., the agent’s designee.

Luminus will reserve about $133,000 to cover necessary expenses incurred to wind down the Chapter 11 cases.

Celadon provides long haul, regional, local, dedicated, intermodal, temperature-protected and expedited freight service and is based in Indianapolis. The company filed bankruptcy on Dec. 9, 2019 under Chapter 11 case number 19-12606.

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