Celadon closing up shop!

Discussion in 'Truckers News' started by drvrtech77, Dec 7, 2019.

  1. mitrucker

    mitrucker Road Train Member

    4,844
    7,713
    Dec 15, 2010
    Lapeer, MI
    0
    I’m making money right now driving a 10 yr old Cascadia. A truck is merely a tool used to do a job. As long as it’s safe, who cares?
     
    bryan21384, Danny707, CMBreen and 4 others Thank this.
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. Dave_in_AZ

    Dave_in_AZ Road Train Member

    49,344
    311,038
    May 4, 2015
    0
    There's a little guy that closed his doors suddenly near me. The terminal manager said he saw it coming for awhile.

    I heard rumors of him stiffing the tire companies and other places for five figures each.

    This was a 35 truck shop.

    I guess I wonder why steps aren't / weren't taken for a more organized shut down. Same with the big company.

    It's past the point of no return, you don't have to wait until all the life boats are gone to abandon ship.

    Hope I never know the reasons first hand.
     
    Jarhed1964, Vic Firth and Upinsmoke Thank this.
  4. double yellow

    double yellow Road Train Member

    5,946
    10,065
    Aug 28, 2011
    State of Jefferson
    0
    Celadon had ~ $500 million in loans, 30% from Luminus (who owns 50% of Celadon) and 70% from Blue Torch. One of the terms of those loans was something like Celadon maintain $5 million in cash on hand.

    Well Celadon is primarily an automotive carrier and GM workers went on strike in October through most of September. Since most invoices are paid 30-90 days, that means right now is when Celadon is feeling the cash crunch.

    Anyway, once they break the loan covenant, the loans become due immediately. That means a company that was operating just fine one day can suddenly have to close up shop.

    But if the underlying company still is profitable, it might just reorganize under chapter 11. The lenders may lose some of their investment, but the company gets to keep on working and paying back what it can. This is what Celadon is aiming for now...
     
  5. HarveyRiggs

    HarveyRiggs Bobtail Member

    6
    6
    Jun 15, 2019
    0
    From what i hear, there are 2 creditors, one with a big chunk & one with a small chunk. The bigger chunk is a group of wall street honchos who have no experience in the trucking industry. The smaller one does. The small one tried to negotiate for a bigger share as part of the loan Thursday & the bigger ones refused. So that caused the loan to not happen. Then the arrest of the 2 former executives did not help matters when that came out in the news. Then once social media kicked in & with freightwaves story, several shippers cancelled all the loads. So now they are in a bind with drivers available, but now loads from several of their biggest shippers.
     
    scottied67, Upinsmoke and Johny41 Thank this.
  6. Upinsmoke

    Upinsmoke Medium Load Member

    613
    1,206
    Feb 26, 2019
    0
    Some folks enjoy holding that oblong steering wheel with the cheap plastic feel...
    :Driver:
     
    Tall Mike Thanks this.
  7. HarveyRiggs

    HarveyRiggs Bobtail Member

    6
    6
    Jun 15, 2019
    0
    Also the 2 creditors are having their own little spat. Luminus wanted a bigger cut from Blue Torch, but they are refusing to sell it to them. That is part of the issue with thursdays meeting i hear.
     
    double yellow, Johny41 and Upinsmoke Thank this.
  8. thisisamazing

    thisisamazing Bobtail Member

    5
    6
    Jun 26, 2019
    0
    Yeah man, I remember that. I run local for a GREAT company... and never let the tank get below 1/2 even now. Never forgot how those guys got stranded... :(
     
    drvrtech77 and Upinsmoke Thank this.
  9. Dave_in_AZ

    Dave_in_AZ Road Train Member

    49,344
    311,038
    May 4, 2015
    0
    They haven't been operating just fine for 18 months.
     
  10. nikmirbre

    nikmirbre Road Train Member

    5,043
    8,670
    Jul 27, 2011
    High Point NC
    0
    I met him and sat in his office and talked with him a good while back in 2001.... he was such a nice guy.
     
    Jarhed1964, bzinger and Upinsmoke Thank this.
  11. Tall Mike

    Tall Mike Road Train Member

    6,827
    30,821
    Aug 20, 2014
    New York
    0


    I care..

    Some of us need a little more than fleet spec, and for some of us this is still a lifestyle not just a job...

    If you’re happy, I’m happy for you, too each his own.. :thumbup:
     
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.