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Celadon gets six-month extension from NYSE to avoid delisting

October 30, 2017

Indianapolis-based trucking company Celadon Group Inc. has received an extension from the New York Stock Exchange that will allow its stock to remain listed and traded on the exchange for another six months, Celadon announced Monday morning.

Celadon received a warning from the NYSE in May that its stock was in danger of being delisted. 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 reports on company’s financial statements for the quarterly periods ending June 30, Sept. 30 and Dec. 31 of 2016.

BKD said those financial reports “should no longer be relied upon.” Celadon has not issued quarterly or annual reports since that time.

The extension gives Celadon until May 2 to file with the Securities and Exchange Commission annual reports for the fiscal years ended June 30, 2016 and June 30, 2017, and quarterly reports for the periods ending Sept. 30, 2016, Dec. 31, 2016, and March 31, 2017. 

During the extension period, Celadon's shares will continue to trade on the NYSE.

In an April 25 letter to the chairman of Celadon’s audit committee, BKD said more information had come to light after the quarterly reports were issued, 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 the three quarterly reports.

Celadon said it “continues to work diligently to become current with its SEC filings as required under applicable securities laws.”

The company has made numerous moves throughout 2017 to overhaul its operations, including hiring a turnaround expert to replace the CEO, selling off business units, restructuring its debt and exiting its driver-education business.

Earlier this month, Celadon confirmed something that has been speculated for months: The company is under investigation by the SEC.

In April, a Celadon investor filed a civil suit against the company, alleging that the company was misleading shareholders about its financial status and covering up the fact that it was under SEC investigation.

Celadon shares dipped 3.3 percent Monday morning, to $7.35 each.

 

 

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