Celadon Bankruptcy Imminent

Lease ops may come out okay. Celadon started a leasing company many years ago (Quality Companies) as a third party leasing agent. When they went through their problems 4 years ago they sold off the majority of the leasing company. I forget the name of the buyer, it was a holding company in New Jersey. Any escrow accounts should be held by Quality Companies not Celadon.

Lease ops may come out okay.

PJ, I certainly hope they do, but personally I think it extremely doubtful. They are independent contractors. In a bankruptcy situation they will be unsecured creditors, as will the holding company who holds the leases. It would take a serious miracle for any of the unsecured creditors to get paid in this situation. Even the secured creditors will only receive pennies on the dollar of what they're owed.

There's insufficient cash to go around now. That problem immediately grows exponentially now that creditors have cut them off and business slams to a halt. It's lights out. Nobody gets paid but the attorneys.

I understand OS, but the leasing company owns the trucks, of which celadon is only a minor partner. They lease trucks to alot of companies. Those leasing should be able to move the truck to another of those companies as long as the driver qualifies to work for them. What the leasees should be concerned with is if Celadon kept paying the leasing company the money that was payroll deducted.

In the end it will be very stressful for those involved.

Im sad to here that they will have to close their door for right now. Do you think there is a way they can reopen later? I have seen stores and other businesses come back to reopen. Like Ashley Furniture did. Are the perpetrators/ suspects going to be made to repay it back? Those greedy snakes aught to be made to pay it back.

Unfortunately, I don't think this is the case. They are closed for good and will be liquidating all assets is what I have seen on several news outlets.

Im sad to here that they will have to close their door for right now. Do you think there is a way they can reopen later? I have seen stores and other businesses come back to reopen. Like Ashley Furniture did. Are the perpetrators/ suspects going to be made to repay it back? Those greedy snakes aught to be made to pay it back.

I have a friend who worked there. He left a year ago when things looked bleak. Supposedly Celadon withdrew funds from the lease ops for the truck payment but never paid the leasing company. Lease.ops have been trying to find out if they could sign a lease with Quality and arent getting any answers. If payments are owed on the trucks because Celadon didnt forward payment, this may be impossible. Dispatch stopped answering phones and just closed up.

Sounds like more fraud to me!

so sad

I was afraid of something like that may have happened. It is very sad. These stories are one of the issues that scares new drivers coming into the business. It paints a very bad picture. I feel for all the drivers that did nothing wrong getting screwed. This was not a small company by any means. I actually passed a celadon truck on I16 between macon and savannah ga yesterday.

Bad timing with the holidays but it looks like employees will be paid and arrangements made for drivers to get home. At least I hope that is the case. I've been seeing all kinds of stuff all over FB about this.

For second there it looked like Celadon was making a come back. They had scored a huge contract with Walmart, and was hauling their milk out of their Fort Wayne plant. Which they just opened after deciding to part way's with Deans food, and make their own. Cut out the middle man. Interestingly enough Deans loosing Walmart is a big reason why Deans just filed for Chapter 11. All of their drivers will probably be looking for work soon also. Crazy how many companies are going under at the moment. Way more than the ones that are making the news.

Im really saddened by this corruption. I despise those two people in management whoe Stole so much money. I pray that any corruption in any company gets found out immediately or in the near future to protect their reputation, business and success. IN Jesus Name Amen.

For second there it looked like Celadon was making a come back. They had scored a huge contract with Walmart, and was hauling their milk out of their Fort Wayne plant. Which they just opened after deciding to part way's with Deans food, and make their own. Cut out the middle man. Interestingly enough Deans loosing Walmart is a big reason why Deans just filed for Chapter 11. All of their drivers will probably be looking for work soon also. Crazy how many companies are going under at the moment. Way more than the ones that are making the news.