Celadon Group has announced that it has refinanced its former revolving credit facility and obtained $165 million in new financing.
Celadon CEO Paul Svindland said that the financing will provide a platform for the company to engineer a turnaround.
"Over the past two years, we have exited several business units and become a focused North American truckload transportation company,” said Svindland. “Despite numerous headwinds, including an older tractor fleet, we have achieved meaningful improvements in revenue per seated tractor, customer service, and safety.”
The company plans to replace 2,000 tractors with new units in the next few quarters. The expectation is that the new trucks will lower costs, improve productivity and improve conditions for drivers.
The embattled company has been under investigation by the Securities and Exchange Commission for violations related to securities fraud.
After an audit raised questions about the company’s finances in 2017, the company was required to restate its net income before taxes showing a significant difference between what was reported over a period three-year period and the actual income. In the turmoil that followed, Celadon had its public stock delisted from the New York Stock Exchange and this year the company agreed to pay $42.2 million in restitution.
"Outside of core operations, we expect to complete our financial statement audit during our second or third quarter of fiscal 2020,” said Svindland. “Promptly thereafter, we intend to resume filing financial reports with the SEC and to seek a listing on a national stock exchange."