PAM Transport looks to buy Celadon’s Mexican business, court filings show

Deal to purchase bankrupt Celadon Group’s Mexican subsidiaries, including Jaguar Transportation, for $7 million would expand PAM Transportation Services’ footprint south of the border.

PAM Transport is in talks to buy Celadon Group's Mexican business. (Photos: Jim Allen/FreightWaves)

PAM Transportation Services is seeking to buy bankrupt Celadon Group’s Mexican business, including carrier Jaguar Transportation, for $7 million, court filings show. 

Celadon disclosed the proposed deal with PAM Transport on Friday in a filing in U.S. Bankruptcy Court for the District of Delaware seeking approval to enter into a sale agreement. It follows PAM’s January deal to purchase Celadon’s Laredo, Texas, terminal for nearly $20 million.

The Friday filing details a nonbinding Feb. 8 offer that Pam made to purchase Celadon’s Mexican subsidiaries, Celadon Mexicana and Servicios de Transportación, in addition to selected assets of Leasing Servicios, Jaguar and Servicios Corporativos and a small number of tractors and trailers.

PAM, Celadon and a nonaffiliated Mexican investor are in talks to finalize the purchase agreement, according to court filings.

Much remains murky about the current state of Jaguar Transportation and Celadon’s Mexican operations. But the deal, if approved, could include some or all of Jaguar’s 10 terminals in Mexico, adding to PAM’s growing Mexican division.

Indianapolis-based Celadon moved to shut down Jaguar on Dec. 19 shortly after filing for Chapter 11 bankruptcy protection. Drivers responded by blocking Jaguar’s Nuevo Laredo, Mexico, terminal in protest of unpaid wages — and meanwhile, local management attempted to continue operations.

PAM Transport did not respond to FreightWaves’ request for comment Saturday.

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