Celadon on the ropes...

Discussion in 'Celadon' started by double yellow, May 3, 2017.

  1. Antinomian

    Antinomian Road Train Member

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    Eagle Logistics (Celedon imprint) did that also. You could only fuel at Pilot/Flying J if I remember correctly. And I remember that their cards only worked at certain truck stops within the national chain, which I thought was odd. It was made clear during orientation that you didn't get a fuel discount. I quit after orientation, for several reasons. This being one of them.
     
    Bean Jr. Thanks this.
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  3. double yellow

    double yellow Road Train Member

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    Celadon recently announced that they backed out of the above deal and have been able to secure more conventional lending through December 12 2018 at 8% over base. Beginning in October, they will also pay about $1 million per month in fees. That is still expensive financing in today's low interest environment, but the great news for shareholders is that the company is no longer being forced to give away 20% of itself to private equity vultures.

    Other news:

    They expect to release audited financials at the end of 2018 or early 2019. Revenue per seated tractor grew from $3,107 to $3,619 for the May quarter, but the number of seated tractors declined from ~2,067 to ~1,775. Overall revenue remained flat at ~$83.5 million.

    Celadon still owes "in excess of $350 million" in equipment loans and leases, which works out to about $200,000 per seated tractor. That is enough for a brand new tractor and 2 brand new dry vans per seated tractor, yet the equipment I see on the road is a few years old so they're obviously upside down on these loans/leases. Hopefully this is just left over from shutting down Quality leasing.

    Celadon Group Announces Operations Update, Credit Agreement Amendment Term Sheet, and Termination of Previously Announced Term Loan Term Sheet

    The stock is up over 10% since the announcement.
     
  4. laaylor

    laaylor Road Train Member

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    Jon is working hard to recover the company from this fiasco! So far: as a company driver; I have only seen an increase in my pay this year; so, I’m still hanging with them! :)
     
  5. dancecanyon

    dancecanyon Light Load Member

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  6. laaylor

    laaylor Road Train Member

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    Chinatown and x1Heavy Thank this.
  7. x1Heavy

    x1Heavy Road Train Member

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    200K per tractor with a human in it?

    1750 tractors comes to 350 Million.

    If I was the boss sitting in the ivory tower today pondering this debt problem, I will take 3000 tractor and trailers if need be, sell them

    Then reassess the debt.
     
    laaylor Thanks this.
  8. laaylor

    laaylor Road Train Member

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    That article was from awhile ago? Wasn’t it? We did sell off Quality and no longer own that part of the company... much of that debt was in that division.....
     
    x1Heavy Thanks this.
  9. drvrtech77

    drvrtech77 Road Train Member

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    That don't look good..believe me..they will not tell anyone they're going under..you'll find out when it happens..so make sure you have a back up plan in place in case..
     
  10. laaylor

    laaylor Road Train Member

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    Everyone has been saying that for 2 years....... I do; but; if I had jumped ship like everyone on here was saying too: 2 years ago.... who knows? I’ve kept running great ad my compensation has increased each year as well.. so; I really do appreciate the advice; and I do have a plan just in case:::: but, for 18 years; I’ve always had a backup plan out here. I hope everyone does.....
     
    x1Heavy Thanks this.
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