Bankrupt Celadon accuses recovery company of illegally seizing equipment

Celadon alleges Triangle Recovery Services is holding some of its assets for ransom after the repo company offered cash rewards for locations of the bankrupt company’s abandoned trucks and trailers.

A North Carolina towing and repossession company is accused of holding equipment belonging to bankrupt Celadon Truck Group for ransom.

The complaint alleges that Triangle Recovery Services of Raleigh, North Carolina, falsely advertised itself as a surrender site for equipment belonging to Celadon and also hired other entities to recover equipment belonging to Celadon.

Federal Bankruptcy Judge Karen Owens granted Celadon attorneys’ motion for a temporary restraining order and preliminary injunction against Triangle on Feb. 12.

Celadon attorneys filed a complaint in the U.S. Bankruptcy Court for the District of Delaware on Feb. 6, claiming Triangle currently possesses approximately 50 trucks and trailers belonging to Celadon.

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