Indianapolis-based trucking company Celadon Group Inc. on Tuesday announced it has reached a new agreement in its ongoing effort to get its financial house in order.
The company, which has been delinquent in filing its public financial reports since May, said it has amended its revolving credit facility with Bank of America.
The new pact boosts Celadon's maximum borrowing amount from $192 million to $205 million and resets financial covenants through March 31. It increases the interest rate for all borrowings to at least 8 percent.
"This amendment represents another important step toward refinancing our existing credit facility,” CEO Paul Svindland said in a written statement. “We expect the financial covenant relief and additional borrowing capacity to provide an appropriate time period for the refinancing process. Management continues to work diligently toward accomplishing a refinancing as early as possible.”
Celadon received a warning from the New York Stock Exchange 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 and Sept. 30 of 2017 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 NYSE gave the company an extension 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.
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.
Celadon shares rose 3 cents Tuesday morning, to $6.42 each.