Celadon Group Inc.’s stock is in danger of being delisted by the New York Stock Exchange after the Indianapolis-based trucking company failed to meet NYSE standards for financial reporting.
Celadon received notice about the problem from the exchange on May 2, the company said Monday in a regulatory filing.
The company failed to meet listing standards by committing a filing delinquency, the exchange said. The delinquency occurred when Celadon’s auditor, BKD LLP, withdrew its reports on the trucking company’s financial statements for the periods ending June 30, Sept. 30 and Dec. 31 of 2016.
In an April 25 letter to the chairman of Celadon’s audit committee, BKD said new information had come to light after it issued the reports, prompting it to ask Celadon’s management for explanations and supporting documents.
BKD told the company it had been “unable to obtain sufficient appropriate audit evidence” to support its three previous reports on Celadon’s quarterly financial statements.
Celadon has six months to cure the filing delinquencies in order to return to compliance. The NYSE could extend that period by six months at its discretion.
To regain compliance, Celadon must obtain reissued quarterly reports from its auditor and refile them.
“If the company fails to file these reports by the expiration of the applicable cure period, the NYSE may commence proceedings to delist the company's common stock,” Celadon said in a written statement. “The company believes that it will continue to be listed on the NYSE, but there can be no assurance that the company will be able to file the new reports within the initial cure period or any extended cure period.”
Celadon overhauled its leadership team last week after the financial reporting issue came to light.
Celadon shares rose 21 percent Monday, to $2.25 per share.