Celadon in talks to sell Mexican business for $2.4 million

In 2019 Luminus Management acquired a nearly 50% interest in struggling Celadon. Then in January, White Willow purchased Celadon carrier Taylor Express for $14.5 million.

Celadon said in the filing that it pursued a deal with White Willow because P.A.M. sought to negotiate the terms of its non-binding $7 million agreement. The bankrupt firm did not disclose the specifics of its negotiations with P.A.M.

Former P.A.M. CEO Dan Cushman, who retired on May 1 but remains an advisor to the Arkansas-based truckload carrier, was contacted by FreightWaves on Sunday, May 3, but did not immediately respond to the request for comment.   

P.A.M.’s offer, made public in February, came before COVID-19 began severely impacting North American freight, including cross-border U.S. Mexico operations. P.A.M reported a net loss of $1.3 million in its first-quarter financial results on April 14.

Celadon has struggled to find a buyer for its Mexican subsidiaries, dominated by carrier Jaguar Transportation since it shut them down in December. Its control over its Mexican operations also came into question when the company disclosed in February that employees in Mexico had restarted some operations after labor disputes. 

Celadon filed for Chapter 11 bankruptcy in December.