US-based truckload shipping company, Celadon Group, has filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the US Bankruptcy Court for the District of Delaware.
Celadon also announced that it will shut down all of its business operations effective 9 December 2019. This shut down does not include the Taylor Express business headquartered in Hope Mills, North Carolina, which will continue to operate in the ordinary course while the company explores a going concern sale of its operations.
Celadon aims to use its Chapter 11 proceedings to wind down its global operations.
"We have diligently explored all possible options to restructure Celadon and keep business operations ongoing, however, a number of legacy and market headwinds made this impossible to achieve," said Celadon CEO, Paul Svindland.
"Celadon has faced significant costs associated with a multi-year investigation into the actions of former management, including the restatement of financial statements.
"When combined with the enormous challenges in the industry, and our significant debt obligations, Celadon was unable to address our significant liquidity constraints through asset sales or other restructuring strategies. Therefore, in conjunction with our lenders, we concluded that Celadon had no choice but to cease all operations and proceed with the orderly and safe wind down of our operations through the Chapter 11 process," he said.
To support the wind down of operations, Celadon's lenders have agreed to provide incremental debtor-in-possession financing.
"I would like to thank our vendors, customers, and lenders, and most importantly, I would like to thank our dedicated administrative employees and drivers whose efforts should not be seen as a reflection of this Chapter 11 filing," said Svindland. "They have sacrificed so much of their time and effort for Celadon, and for that, the Company is eternally grateful."