A federal bankruptcy court judge has named Canadian auctioneers Ritchie Bros. as the firm to in charge of auctioning off the fleet assets of Celadon Group.
At the time of Celadon’s Chapter 11 bankruptcy filing in December 2019, the company had almost 2,800 power units, according to data from the Federal Motor Carrier Safety Administration. The company was one of the largest over-the-road trucking companies in North America.
United States Bankruptcy Judge Karen B. Owens’ order authorizes Ritchie Bros. to receive a commission of 8.25% of the gross sale price of each item in the fleet. The company also will be reimbursed up to $2.4 million for transportation and refurbishment costs in connection with the dispositions of the auctioned items.
The majority of Celadon’s fleet assets will likely be sold through unreserved public auctions in the U.S. and Canada in March, Ritchie Bros. announced via news release on Thursday.
Judge Owens order also directed any “third parties currently in possession, custody or control” of Celadon property to turn such items over to Ritchie Bros. or the company’s authorized agents “as soon as practicable.”
Illegally seized equipment
Last week, the bankruptcy court granted Celadon’s request for a temporary restraining order against a North Carolina-based recovery company it is accusing of illegally seizing its equipment and holding it ransom.
The complaint 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 turn over 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.
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.