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FORT SMITH, Ark. — Arkansas Best Corp. said its Treadco Inc. subsidiary settled its long-running dispute with Bandag Inc. over Bandag’s recruitment of Treadco executives and attempts to divert customers from Treadco.

Treadco will receive approximately $5.4 million – equivalent to 11 cents a share on an after-tax basis, according to a statement released by Arkanas Best on Dec. 18. The money will be used to reduce Treadco’s outstanding debt, company officials said.

Treadco filed suit against Bandag in November 1995 after Bandag hired away a number of key Treadco executives and began soliciting business from Treadco’s customers. Bandag also had threatened to suspend its franchise agreements with Treadco unless the company used the Bandag retreading process exclusively.

Treadco switched to Oliver Rubber Co. for tire retreading equipment and materials beginning in 1996.

Although publicly owned, Treadco’s results are consolidated with those of Arkansas Best, which owns 49% of the stock. Treadco operates 24 tire retreading and sales facilities and 32 sales outlets in 15 states. The company posted a net loss of $2.5 million on revenue of $161.3 million in 1997.