Folk band The Cottars are possibly covering Hold on and Georgia Lee on their latest album Forerunner. Their site mentions nothing about this new album, but Amazon.com has the tracklist and seeing as they also covered the Briar and the Rose on their 2003 album Made in Cape Breton, I think we can assume these are Waits covers. You can listen to a clip of their version of Briar and the Rose on their site (mp3).
CORRECTION: The Cottar's site does mention something about Waits songs on their new album. From the press release on the occasion of the band signing to Rounders Records: ,,...Forerunner features traditional instrumentals delivered with intensity and precision sitting comfortably alongside sensitive interpretations of songs by such contemporary artists as Tom Waits, Sinead Lohan, and Karine Polwart...'' -- Thanks to Will for pointing this out.