Bankrupt Celadon, TA Dispatch Reach $3.25 Million Settlement

Bankrupt trucking service provider Celadon Group Inc. has agreed to pay $3.25 million to supplier TA Dispatch LLC, settling a contract dispute that allows its Chapter 11 case to proceed.

The settlement, filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware, would resolve outstanding disputes among Celadon, TA Dispatch, and a couple of Celadon’s lenders—MidCap Funding IV Trust and Blue Torch Finance LLC. A committee of Celadon’s unsecured creditors is also named in the settlement, dated July 20.

The creditors’ committee and Celadon agreed to waive all claims against TA Dispatch.

TA Dispatch, a logistics company, had ...