Celadon’s outlook receives a boost

Svindland continued, “These new trucks will dramatically lower our costs, enhance productivity, and improve the lives and safety of our professional drivers.”

In addition to the refinancing, the restructuring at Celadon is planned to return the company to its core services. Over the last few months, Celadon has divested non-core business units, focusing primarily on the North American truckload (TL) market. While the company is in the early innings of a turnaround, it has seen “meaningful improvements” in revenue per seated tractor, service levels and safety.

Celadon had been seeking a more stable financing structure for some time. It had been operating under a temporary credit facility, requiring short-term extensions. At the end of June 2019, Celadon announced that it had received the eighteenth amendment to its credit facility, which extended the maturity approximately one month and provided a modest amount of additional borrowing.

With new financing in place and a turnaround in motion, the company said that it expects to complete its financial statement audit during its second or third quarter in fiscal 2020. “Promptly thereafter, we intend to resume filing financial reports with the [Securities and Exchange Commission] and to seek a listing on a national stock exchange.”

In April 2019, Celadon agreed to pay $42.2 million in restitution to shareholders regarding alleged accounting fraud.

Celadon provides long haul, regional, local, dedicated, intermodal, temperature-protect and expedited freight service across the United States, Canada and Mexico.