Welcome to the TeamstersOnline.com.
Results 1 to 10 of 10
  1. #1
    On A Mission

    Join Date
    Oct 2009
    Local Union
    N/A
    Employer
    N/A
    Posts
    14,457
    Rep Power
    943

    Default Celedon Biggest Bankruptcy In Truckload History Expected By Midweek

    https://www.freightwaves.com/news/ce...ed-by-mid-week

    https://transportationnation.com/for...lew-of-crimes/

    Celadon, biggest bankruptcy in truckload history expected by mid-week
    Short seller’s report calling the company “A House of Cards” in April 2017 foretold what was to become of one of the largest truckload carriers
    John Paul Hampstead, Director, Passport Research 15 hours ago 40 34,572 3 minutes read



    Celadon Group (OTC: CGIP) will file for bankruptcy protection under Chapter 11 no later than Wednesday, December 11, according to internal sources. The Indianapolis-based, publicly-traded trucking carrier employed more than 3,200 drivers and took in more than $1 billion in gross revenue as recently as 2015.

    More recent numbers are difficult to come by because Celadon had to restate its financial reporting after mismanagement and a complex accounting scandal that ultimately resulted in former executives being indicted on securities fraud charges yesterday, December 5.

    But the imminent bankruptcy’s immediate cause was a technical default on Celadon’s covenants, the agreements between borrowers and lenders that can define requirements for cash reserves and earnings. Celadon entered the week with scant cash in its accounts to continue operations, but was negotiating with creditors Luminis and Blue Torch to secure further financing. Those talks fell through Thursday morning, December 4, when talks between Blue Torch and Luminis broke down over collateral issues. Blue Torch owned 70% of the debt and Luminus owned 30%.

    Over-the-road drivers may be at risk of being stranded — our source could not verify that Celadon’s drivers would get home — and should fill their tanks at the earliest opportunity as the company’s fuel cards still work. Celadon’s 3,500 employees could lose their jobs soon

  2. Likes fxstc07, ABFwife Liked this post
  3. #2
    On A Mission

    Join Date
    Oct 2009
    Local Union
    N/A
    Employer
    N/A
    Posts
    14,457
    Rep Power
    943

    Default Re: Celedon Biggest Bankruptcy In Truckload History Expected By Midweek

    https://transportationnation.com/for...lew-of-crimes/

    Former Top Celadon Executives Arrested and Charged With Slew of Crimes
    DECEMBER 5, 2019 BusinessTrucking News Articles By Transportation Nation Network
    1 Comments
    Indianapolis, IN – Two former senior executives of a mega carrier were arrested on Thursday after being indicted on a slew of fraud-related crimes, according to the U.S. Department of Justice (DOJ).

    The former chief operating officer (COO) and chief financial officer (CFO) of Indianapolis-based trucking company, Celadon, were charged for their alleged role in a complex securities and accounting fraud scheme that resulted in a loss of more than $60 million in shareholder value, the DOJ says.

    William Eric Meek, 39, and Bobby Lee Peavler, 40, both of Indianapolis, were each charged in an indictment filed in the Southern District of Indiana with one count of conspiracy to commit wire fraud, bank fraud, and securities fraud; five counts of wire fraud; two counts of securities fraud; one count of conspiracy to make false statements to a public company’s accountants and to falsify books, records, and accounts of a public company; and one count of making false statements to a public company’s accountants.



    Peavler was charged with two additional counts of making false statements to a public company’s accountants.

    Meek and Peavler were arrested Thursday morning, according to DOJ officials.

    Both men appeared before U.S. Magistrate Judge Mark J. Dinsmore of the Southern District of Indiana and were released on bail.

    According to the indictment, by approximately 2016, Meek, Peavler, and others at Celadon knew the value of a substantial portion of Celadon’s trucks declined in value in part to a slowdown in the trucking market.

    In addition, many of those trucks, which were owned by Quality Companies (Quality), a division of Celadon, had serious mechanical issues that made them unattractive to drivers, further depressing their value.

    Instead of accounting for this decline in truck values, Meek, Peavler and others allegedly devised a scheme that caused Celadon to conceal tens of millions of dollars in losses to its shareholders, banks and the investing public.
    Last edited by slavenomore; 12-07-2019 at 03:39 PM.

  4. Likes fxstc07, ABFwife Liked this post
  5. #3
    Retired !

    Join Date
    Feb 2009
    Local Union
    107
    Employer
    Retired - New Penn
    Location
    South Jersey
    Posts
    17,176
    Rep Power
    371

    Default Re: Celedon Biggest Bankruptcy In Truckload History Expected By Midweek

    A judge has approved the payout of money owed to former employees. The catch is this, approved, but not ordered.
    I wonder who will feel the burn from that decision ?

    Judge Approves Payout Plan to Former Celadon Employees
    A federal bankruptcy judge in Wilmington, Del., on Jan. 3 gave approval for Celadon Group Inc. to pay $4.6 million to drivers and other employees who were expecting paychecks from the company, which on Dec. 9 shut down and entered bankruptcy.
    The order authorizes Celadon to spend $3.4 million for unpaid compensation and termination benefits to its former employees, $900,000 to independent contractors, and $300,000 owed for employee benefits.
    While the order authorizes Celadon to pay the owed wages, it does not require the company to pay. The court documents also do not reveal what percentage of total owed compensation the $4.6 million represents.
    https://www.ttnews.com/articles/judg...adon-employees

  6. Likes slavenomore, ABFwife Liked this post
  7. #4
    Retired !

    Join Date
    Feb 2009
    Local Union
    107
    Employer
    Retired - New Penn
    Location
    South Jersey
    Posts
    17,176
    Rep Power
    371

    Default Re: Celedon Biggest Bankruptcy In Truckload History Expected By Midweek

    Celadon used trucks hitting the auction block staring tomorrow, Feb. 26. The used market will have a flood of trucks in the coming weeks.

    Celadon trucks, trailers go on auction block
    This week week, Ritchie Bros. will begin auctioning off truck equipment from defunct Celadon Group, which closed its doors in December after filing for Chapter 11 bankruptcy.
    Since announcing the liquidation last week, Ritchie Bros. has been busy adding Celadon trucks and trailers on its website, which quickly grew from 487 items on Wednesday to 1,048 items by late Friday. The current line-up includes model year 2015-2018 tractors.
    Celadon equipment will begin selling Wednesday, Feb. 26 at Ritchie Bros.’ Phoenix auction. Other auctions will follow in Denver, March 4; Fort Worth, Texas March 10; Las Vegas March 12; Columbus, Ohio March 17; Sacramento, California March 18; Chicago March 19; Chehalis, Washington March 26; Nashville March 20; North East, Maryland March 24 and Atlanta March 27.
    https://www.truckersnews.com/celadon...auction-block/

  8. Likes ABFwife Liked this post
  9. #5
    Resistance is futile.

    Join Date
    Nov 2007
    Local Union
    391
    Employer
    YRC-Roadway
    Location
    North Carolina
    Posts
    3,192
    Rep Power
    870

    Default Re: Celedon Biggest Bankruptcy In Truckload History Expected By Midweek

    Just seen this thread. Celedon was renting half our dock and about 6 safety lanes. Mechanics had tools stolen, TV stolen out of the break room at the shop. They drive around our yard where they wasn’t supposed to be. Caught walking jn places on the property they weren’t allowed.

    I don’t think any of the drivers spoke good English from the ones I heard talk.


    They finally closed the safety lane part because their own employees where stealing from it.


    Sent from my iPhone using Tapatalk

  10. #6
    I Am Rocking Now

    Join Date
    Jan 2008
    Local Union
    641
    Employer
    Retired New Penn
    Location
    Northeastern PA
    Posts
    23,132
    Rep Power
    322

    Default Re: Celedon Biggest Bankruptcy In Truckload History Expected By Midweek

    Quote Originally Posted by Jimmy View Post
    Just seen this thread. Celedon was renting half our dock and about 6 safety lanes. Mechanics had tools stolen, TV stolen out of the break room at the shop. They drive around our yard where they wasn’t supposed to be. Caught walking jn places on the property they weren’t allowed.

    I don’t think any of the drivers spoke good English from the ones I heard talk.


    They finally closed the safety lane part because their own employees where stealing from it.


    Sent from my iPhone using Tapatalk
    Old saying " You get what you pay for" . Celedon paid in the long run.

  11. Likes Jimmy Liked this post
  12. #7
    Resistance is futile.

    Join Date
    Nov 2007
    Local Union
    391
    Employer
    YRC-Roadway
    Location
    North Carolina
    Posts
    3,192
    Rep Power
    870

    Default Re: Celedon Biggest Bankruptcy In Truckload History Expected By Midweek

    Quote Originally Posted by crazy View Post
    Old saying " You get what you pay for" . Celedon paid in the long run.
    I never had heard of them until they moved in our terminal.

  13. #8
    Retired !

    Join Date
    Feb 2009
    Local Union
    107
    Employer
    Retired - New Penn
    Location
    South Jersey
    Posts
    17,176
    Rep Power
    371

    Default Re: Celedon Biggest Bankruptcy In Truckload History Expected By Midweek

    Seems that the creditors are still gathering Celadon's equipment that was spread out all over the country, including Mexico.
    I know for years after CF went down I still knew of places that had dollies and trailers parked and waiting for somebody to get them. I'm sure they were just taken for scrap or storage use, and not by any rightful owner.

    Third-party logistics provider pays $152,000 to recover Celadon trucks ‘quarantined’ in Mexico
    A Chattanooga, Tennessee-based company had to pay more than $150,000 to retrieve five Celadon trucks “quarantined” in Mexico back in December, according to recently released court documents.
    The court filings are part of the U.S. Bankruptcy Court for the District of Delaware hearings for trucking company Celadon Group, which filed for Chapter 11 bankruptcy on Dec. 9.
    Sese Logistics U.S. had to pay $152,433 in fees and expenses to obtain the release of five loads of goods from Mexico in December, according to court filings.
    The loads were being transported by Celadon from a Volkswagen factory in Mexico to the Volkswagen assembly plant in Chattanooga. Sese Logistics and Celadon Group had a broker-carrier agreement dating back to June 2, 2014, according to filings.
    https://www.freightwaves.com/news/th...ined-in-mexico

  14. Likes ABFwife Liked this post
  15. #9
    Retired !

    Join Date
    Feb 2009
    Local Union
    107
    Employer
    Retired - New Penn
    Location
    South Jersey
    Posts
    17,176
    Rep Power
    371

    Default Re: Celedon Biggest Bankruptcy In Truckload History Expected By Midweek

    Celadon has sold it's Mexican operation.
    Strange, because another carrier that had shut down, has now resumed operations and purchased the assets on the Mexico side.

    Bankrupt Celadon sells Mexican business for more than $6 million
    Shuttered mega-carrier Celadon entered into an agreement to sell their Mexican assets for over $6 million.
    On June 11, 2020, Jaguar Transport Inc. bid $6.8 million to acquire Celadon’s Mexican assets via an online auction, according to court documents filed in the U.S. Bankruptcy Court for the District of Delaware.
    The assets purchased include Celadon Mexicana and Jaguar Logistics and Leasing Services. Included in the purchase are Celadon’s terminal in Nuevo Laredo, five International ProStar Class 8 trucks, and 75 trailers.
    P.A.M. Transportation Services and White Willow Holdings also attempted to purchase Celadon’s Mexican assets, but both deals fell through.
    Jaguar Logistics also reportedly shut down for a time around the bankruptcy announcement but appears to have resumed operations of a fleet of 70 trucks.
    https://cdllife.com/2020/bankrupt-ce...han-6-million/

  16. #10
    Retired !

    Join Date
    Feb 2009
    Local Union
    107
    Employer
    Retired - New Penn
    Location
    South Jersey
    Posts
    17,176
    Rep Power
    371

    Default Re: Celedon Biggest Bankruptcy In Truckload History Expected By Midweek

    Celadon was larger then I thought. The Canadian subsidiary, Hyndman Transport closed and left many drivers owed a lot of money. The government of Canada has sent payments to help offset what many lost.

    Payouts to Celadon’s Hyndman drivers vindicate legal battle
    Truck driver Robert Mitchell, 69, didn’t think he’d get any of the pay he was owed after Celadon Group shut down Hyndman Transport in December. But in May, about C$6,800 (US$5,000) appeared in his bank account — one of hundreds of payouts likely to go out to former employees of the bankrupt U.S. trucking company’s Canadian subsidiary.
    “I have a hatred for Celadon. Every little dime we can get back is a way to say, ‘Screw them,’” Mitchell told FreightWaves. “I was glad to get it.”
    It amounts to less than half what the 15-year Hyndman employee was owed. But Mitchell and other former Hyndman employees are better off than their colleagues in the U.S. The liquidation of Celadon’s assets under Chapter 11 bankruptcy likely will leave the latter group with nothing, court records show.
    More than 350 former Hyndman Transport employees, mostly truck drivers, have applied for payments from Canada’s federal government, according to a report filed Wednesday in Ontario Superior Court. The payments could exceed C$2 million (US$1.5 million) under a law that offers compensation to employees of companies that go bankrupt or enter receivership.
    While the funds come from Canadian taxpayers, the federal government generally attempts to recoup the money from company assets. To date, only C$400,000 has been set aside from Hyndman’s assets to cover a portion of claims that have a special status in the liquidation.
    https://www.freightwaves.com/news/pa...e-legal-battle

  17. Likes slavenomore Liked this post
 

 

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •