Drivers for Celadon Group Inc. (OTC: CGIP) appear to have been the last ones to find out about the company’s imminent bankruptcy and shutdown of its over-the-road trucking operation, leaving many of them stranded on highways with no instructions on how to dispose of their rigs and freight or assistance getting home.
Some of Celadon’s competitors are stepping into the breach to help drivers get home, but before they abandon their vehicles there are steps they should take to protect themselves from liability, experts say.
Company drivers “need to find a safe location to park the truck, like a truck stop or rest stop, take pictures of the truck, hide the keys, document the location and where the keys are, and send all that information to the company,” Cassandra Gaines, a transportation attorney and head of Gaines Law Group LLC in Scottsdale, Arizona, said in a phone interview.
She stressed that trucks should not be left on the side of the road because of the danger of being hit by another vehicle.
Drivers are on their own to find bus, air, rail or other transportation home but should keep receipts because there may be options to file as a creditor with the bankruptcy court, depending on their state of employment, Gaines said.
Independent owner-operators who provided service to Celadon are contractually obligated to complete their assignment, Gaines advised, but should keep their receipts because they can submit any expenses for possible reimbursement or sue in small claims court.
And drivers owed unpaid wages should file a claim in bankruptcy court, although there’s no guarantee they will get any money, she said.
Celadon has about 3,000 drivers and about 2,700 tractors across its North American operations.
FreightWaves was first to report (Dec. 6) that Celadon is going under because it defaulted on loan covenants and couldn’t secure additional financing. An official bankruptcy filing is expected next week.
A freight agent close to the company told FreightWaves that calls and numerous emails had not been returned Saturday. The source, who requested not to be named because of the sensitive situation, said “it’s like no one is working today and have all gone home. We work with dozens of folks at the company, yet no one is returning messages.”
Owner-operators and agents are at risk of not being paid for services rendered. In bankruptcy, they are considered unsecured creditors and will be the last to get paid. Employees of the company will be placed in the class of secured creditors and will receive preference over other creditors in wages that are owed, according to trucking industry experts familiar with the process.
Gaines said owner-operators are in a less desirable position in a bankruptcy because they are independent business owners and will be unsecured creditors, meaning they will be paid out after all of the secured creditors get paid, including banks and employees.
Helping hands
The situation is chaotic for Celadon drivers, some of whom say on message boards that their loads have been cancelled and that they were instructed to leave their tractor-trailers at the nearest truck stop, while others said they are being told to stay with their equipment.
A senior Celadon official, speaking on condition of anonymity, said Celadon’s sales force, customer service reps and other key personnel spent much of Saturday assuring customers that loads in transit are being delivered and answering drivers’ questions.
Information about company-issued fuel cards is mixed, as well, with many drivers saying the cards are no longer being accepted.
Celadon drivers on Facebook are reporting that Truckstops of America is refusing to make repairs or provide roadside assistance because the trucking company’s maintenance account was closed and there is no way to get authorization for repairs.
But several rival carriers, interested in recruiting experienced drivers, have quickly responded to help drivers who are stuck without a way home.
Dart Transit Co. of Eagan, Minnesota, said it will assist any Celadon driver in the field to get home or to one of its four operating centers (Eagan; Sellersburg, Indiana; Atlanta; and Dallas) for driver orientation classes. Current Dart drivers are being instructed to give any stranded drivers a ride. (Dart’s Celadon driver hotline is 612-867-0313.)
“We are committed to matching or exceeding your existing pay package for a like job or route and many of our open jobs come with a generous sign-on bonus as well,” CEO Dave Ables said in an open letter to Celadon drivers. “At the end of the day this is a very tough situation for everyone and we at The Dart Network are here to support the driving community. Whether you are able to work for us or not is secondary to the primary goal of getting you off the road and to your desired location as quickly and safely as possible.”
Hirschbach Motor Lines of Dubuque, Iowa, is encouraging Celadon drivers interested in a job to call recruiters this weekend at 402-404-2018. Those who don’t want a job are being offered free bus rides home.
CRST has posted that it would also offer free bus tickets to help drivers get home.
Recruiters at Covenant Transport have reported talking to over 90 Celadon drivers on Saturday. This is an unprecedented number of inquiries from a single carrier’s driver pool.
U.S. Xpress is offering:
* $500 displacement upon hire or reimbursement of miles not paid up to $750
* Travel reimbursement to the nearest U.S. Xpress location, with taxi or Uber receipts
* Guaranteed home for the holidays
* $10,000 sign-on bonus paid $1,000 monthly
* Bus tickets today to the company’s nearest location tomorrow and meals paid
* $50 personal item replacement for items drivers had to leave behind with receipt
* 80% will be seated within three days
* $25 store credit to buy clothing needed upon hire
Other trucking companies, including BGF Global Inc. of Grand Prairie, Texas, and WEL Companies Inc. of De Pere, Wisconsin, are actively recruiting on the Celadon driver page.
Meanwhile, a board member for Teddy’s Trucker’s Association posted on Facebook that the group will help truckers get home and find a new job, and plans to hold a fundraiser for stranded Celadon drivers. The group established a special Facebook group named CELADON CLOSURE ASSISTANCE AND JOBS.
Other carriers have promised to pay for air travel to get drivers home, and one driver said a recruiter offered to put them on the payroll and give them holiday pay without requiring them to haul a load to help through the holidays.
(Clarissa Hawes contributed to this story.)
Spyridon Rousselatos
That is nice to see trucki g company help stranded driver I just like to say to the drivers out there. you can call bay and bay they are a good company with lots of opertunaty give them a call just say spiros send you truck number is 2927
EX CELADON DRIVER
I knew Celadon Trucking was a Fly By Night Company. You can not keep their equipment. You don’t own the equipment. they will file theft charges against you Jason lyons is completely wrong. Do not keep Celadon Equipment. Better to take back to company or drop off at an Authorized Drop Lot Location or where they instructed you to do so.
Christian Ortiz
I’m shocked to see all these responses from companies. God is amazing! Truckers everywhere really do treat each other like family. Thank God.
Christina M Rigsby
This does not affect me but I will pass it on to a friend who is affected by it.
I just wanted to say thank you and God bless each company, individuals and any other parties that is offering help in all ways and not expecting drivers to come drive for them, though they would love for the drivers to work for them and giving drivers a job before the holidays!
Praying for all you drivers and other Celadon employees!
Prime Logistics Corp
We need at least 1 year OTR experience.
We have great miles for company drivers. We pay $0.62 per mile for solo and $0.72 per mile for teams. Trucks are well maintained. We do orientation in Chicago and we run 45 states OTR. We reimburse up to $150 for travel expenses. primelogisticscorp.com 888.919.8181
Noble1
Out of curiosity I went to check some reviews .
Here are 4 that I found aside from those posted on Facebook .
Quote :
“May 19, 2017
Helpful (4)
Prime Logistics Corp Logo
“Not the best company to drive for”
Former Employee – Class A Truck Driver in Rolling Meadows, IL
Doesn’t Recommend
Neutral Outlook
I worked at Prime Logistics Corp full-time for less than a year
Pros
Money can be good at times
Cons
First off the company is shady. They don’t tell you from the beginning that even as a company driver you have to pay a deposit on the truck. They wait until you fly in or get bussed in to Chicago (you have to pay for it) and you start orientation to inform you of that so at that point you’re obligated to comply as most guys need the money and can’t afford to just go back home. They tell you they deduct it from your…
Show More
Advice to Management
Don’t be shady. Not telling drivers about a deposit and stuff until after they got there and then not giving it back even though the equipment is returned in good condition
And another ,
Quote :
“Helpful (4)
Oct 16, 2019
Prime Logistics Corp Logo
“SHADY COMPANY”
Current Contractor – Owner Operator in Rolling Meadows, IL
Doesn’t Recommend
Negative Outlook
I have been working at Prime Logistics Corp for more than a year
Pros
NONE! this company is nothing but a con
Cons
They are ripping people off left and right. Taking drivers money after they pull loads and making up lies to keep it.
Advice to Management
theyre stupid!! theyre the ones keeping drivers money”
And another ,
Quote :
Jun 19, 2019
Helpful (2)
Prime Logistics Corp Logo
“Do not do it!!!!!!!”
Current Employee – Truck Driver
Doesn’t Recommend
Negative Outlook
I have been working at Prime Logistics Corp full-time for less than a year
Pros
there is no pro to working at this place period
Cons
long list.
first they lied about everything they told you.
they never pre plan you
they dont work on weekend or after certain hours
they steal your money every week little by little
the first week you work you owe them money.
Advice to Management
they are some crooks and do not care about their drivers”
and another .
Quote :
“Run!
Professional Driver (Former Employee) – Utica, MI – May 27, 2019
Worst company to work for from paid to benefits. Managers were disrespectful and kept lying. They treat people like outcasts and don’t pay them well and on time. They make fake promises just to keep you around longer. There was no benefits, no bonuses overall the worst company I’ve ever worked. Of course they have their own entourage to come on here and write fake reviews fake promises. Please do me a favor, know your worth and run from this company.
Pros
None
Cons
None
You may also want to check the reviews on their Facebook page under Prime Logistics Corp .
Be vigilant !
In my humble opinion …………
Jason lyons
Please get someone to verify the details and post better instructions for drivers on how to make sure they get paid.
All drivers should take their truck home and place a lean on it for unpaid wages along with storage and transportation. Tow truck companies will not release a vehicle to a creditor until they have been paid for their services. The creditor can choose to pay or hand over the title. Leaving your truck looses you every bit of leverage you have, especially lease ops. This is not theft. You have a legal lean on the property. As long as it remains in your possession you are protected.
BuBBa
Let me know how that works out….if you can post from jail.
Richard N
So you’re a team driver making $.77 com. That equates to $.38.5 cpm per driver. What does a solo driver make? I see US EXPRESS trucks and they are driving beyond the 70 mph range. So what do you say about that for safety ?
Lance
I was in the tel lease with celadon up until Fri 2000 no in hotel waiting for orientation with cfi