Celadon CEO Paul Svindland said the financing would provide “a solid platform for the next stage of our business turnaround.”
The Justice Department’s April 25 press release—which announced Celadon had admitted to the fraud and agreed to pay $42 million in restitution—closes by noting that the investigation is ongoing.
The Indianapolis-based trucking company announced Friday that it has sold its intermodal operations to Winnipeg, Manitoba-based Bison Transport.
The Indianapolis-based trucking company admitted to “filing materially false and misleading statements to investors and falsifying books, records and accounts,” federal prosecutors said. One former executive also was charged with fraud.
The Indianapolis-based trucking company said the divestitures are part of its larger plan to streamline operations and reduce its debt load.
The move comes as Celadon works through a host of accounting and financial issues that were first announced in May 2017.
CEO Paul Svindland is recovering at home following surgery last week to remove a benign brain tumor, the Indianapolis-based trucking company said Tuesday.
FreightRover—which began as part of the Indianapolis trucking company Celadon Group—sells software that helps clients optimize freight flow and streamline carrier payments for shippers, carriers and drivers.
The settlement, which is awaiting court approval, would resolve suits brought by several parties over financial-reporting issues that have plagued Celadon for at least four years. The plaintiffs expressed concern that the company would go bankrupt before any recovery could be made.
The Indianapolis-based trucking company said the probe by the Criminal Division of the United States Department of Justice is related to financial reporting issues that it first disclosed in May 2017.
About 2,400 independent drivers for Indianapolis-based Celadon Trucking Services Inc. are seeing the results of a class-action judgment that found the drivers were overcharged for their fuel purchases.
The struggling Indianapolis-based company said it has arranged a much-needed loan but must give up a major ownership stake and board seats to receive it.
An internal probe found Celadon overstated earnings by as much as $250 million from 2013 to 2016. The local trucking company said it will be delisted from the New York Stock Exchange.
The extension gives Celadon until May 2 to file several delinquent quarterly and annual financial reports with the Securities and Exchange Commission.
The trucking giant is canceling its $28 million Mount Comfort headquarters, selling its flatbed unit, and outsourcing its driver schools, to refocus on core business as the industry is expected to boom.
The move comes as the Indianapolis-based trucking company works through financial, accounting and operational issues.
Indianapolis-based Celadon Group Inc. is exiting the driver-education business, five years after spending heavily to launch the driving schools as a way to combat an ongoing shortage of qualified truck drivers.
Investors and analysts are reacting positively to Celadon Group Inc.’s decision to bring in an outside executive with years of transportation industry experience to run the company.