Financially embattled Celadon Group announced that it has made another step toward refinancing the company, as it continues to restructure while under investigation by the Securities and Exchange Commission.
In October, Celadon entered into a Sixth Amendment to an Amended and Restated Credit Agreement, which requires the company to obtain non-binding letters of intent for proposed financings sufficient to refinance the company’s existing revolving credit facility, and the payment of any preliminary diligence or fees required by the letters of intent.
The company has now received the proposals and paid the requisite preliminary fees to satisfy this provision of the Sixth Amendment. The proposals are non-binding and the completion of the refinancing is subject to, among other things, the prospective lenders' satisfactory completion of due diligence, internal lender approvals, and negotiation of definitive documentation.
“We were pleased to receive proposals for both an asset based revolving credit facility and term loan financing,” said Paul Svindland, CEO of Celedon. “In particular, we have entered into a nonbinding letter of intent which contemplates an asset based revolving credit facility with two of our existing revolving lenders. This continued support from our current lenders is much appreciated as we continue to work towards accomplishing the refinancing."
Celadon also said it has appointed Vincent Donargo as vice president and chief accounting officer. Donargo previously served as executive vice president and CFO of Beaulieu Group, a carpet and flooring manufacturing company, from August 2016 to November 2017.
"We are pleased to add Vince to the Celadon team and are glad to have reached a conclusion to our search for a Chief Accounting Officer,” said Thom Albrecht, chief financial and strategy officer of Celadon. “Vince's deep expertise in accounting and financial matters will be invaluable to the company and we look forward to his contributions."