By choosing the Chapter 11 process, Celadon will continue to run its operations and secure lost funds from customers.
It is expected that Celadon’s trucks and trailers will be sold to the highest bidder. However, its real estate is expected to be sold to separate bidders.
The company will be shutting all its business operations. Only its subsidiary “Taylor Express” in North Carolina will continue, says CEO Paul Svindland. Current drivers have been asked to complete their work and bring back their equipment to the yard, he states.
Svindland says that all efforts are taken to restructure the company and keep operations ongoing in Celadon. As debt obligations are high, Celadon is unable to address these debts through asset sales. Even restructuring strategies will be unable to meet debts, he says.
William Meek and Bobby Peavler, the COO and CFO respectively of the company, now face various charges. They had inflated the company value and shareholders had lost millions through their conspiracy to commit fraud. It is expected that they would spend decades in prison if they are convicted.
With such happenings in the company, the drivers are finding it tough to face a bleak future. Many are dropping their trucks at truck stops. They will be going home, say drivers. The company’s bankruptcy filing has affected thousands of drivers.
According to reports from Eyewitness News in October, there is a nationwide shortage of truck drivers. Job offers are pouring in from other trucking companies to the stranded drivers through social media. Drivers are worried about their job loss, especially as it is Christmas time and needs are many.
The Indiana Motor Trucking Association has reported that the current requirement for drivers, nationwide is at 60,000. It is expected that there will be demand for more drivers in the years to come.
Indianapolis Mayor Joe Hogsett claims that is the cause of corporate recklessness.
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