The Celadon Group continues to restructure its assets in an attempt to create more liquidity, while it is being investigated by the Securities and Exchange Commission (SEC).
The company, which owns Celadon Trucking and Celadon Logistics, as well as other subsidiaries, announced this morning that it has refinanced its revolving credit and extended equipment leases that were maturing in 2018.
Celadon’s short-term revolving credit restructuring was done through Bank of America, and has a maturity date at the end of fiscal 2017. In addition they received US $22.6 million in equipment term loans secured by existing tractors and trailers used in their Hyndman subsidiary.
Chief Executive Officer Paul Svindland said the company is making significant progress toward their goals, while acknowledging their financial results will continue to be uneven for the time being.
Other parts of the strategic plan have included selling off its flatbed division and flatbed assets in September, and focusing on the company’s irregular route truckload business.
Celadon also said it has identified excess truckload assets and real estate it will be selling.
“In terms of non-core assets, we exited the flatbed business and our driver-training academy in September, and we plan to exit three additional small businesses, including our Quality Companies lease servicing business, in coming quarters,” said Svindland.
Celadon has also disclosed it is the target of an SEC investigation. The SEC issued a subpoena to the company and is currently in the process of obtaining documents from Celadon. No further details of the investigation were released.
This article by the staff of award-winning Canadian publication Today's Trucking appears here via a cooperative editorial-sharing agreement between HDT and TT.