Two out-of-state financial services firms have acquired the assets of former Celadon Group Inc. affiliate 19th Capital Group in a deal that will allow the Indianapolis-based company to continue operating with a reduced workforce rather than shutting down as previously planned.
Celadon auctioning off equipment from east-side headquarters
Indianapolis-based Key Auctioneers will be handling the sale of office furniture, computers, truck parts and other items from Celadon’s east-side headquarters as the trucking company liquidates its assets in bankruptcy.Read More
CEO leaving bankrupt Celadon for new logistics job
Celadon CEO Paul Svindland, who joined the company in 2017 and tried to turn around the troubled trucking company, is departing for a CEO job at another logistics company.Read More
Celadon selling Andy Warhol prints as part of bankruptcy
The Warhol screen prints, four brightly colored pieces depicting tractor trailer trucks, hung in the trucking company’s corporate offices.Read More
The Indianapolis-based asset financing and fleet management company notified state officials this week that it will permanently close its operations late next month, eliminating all of its employees.
The trucking firm won a temporary restraining order against the repo company on Thursday.
If other bidders emerge for the property, an auction will be held Jan. 22 at the New York City office of Celadon’s bankruptcy counsel, DLA Piper LLP.
In the years after Celadon Group’s co-founder and longtime leader, Stephen Russell, retired and then died, the company went in new directions that led to financial problems and accusations of fraud. Podcast host Mason King talks with IBJ Editor Greg Andrews and reporter Susan Orr about Celadon’s rise and fall as well as what role the fraud allegations played in its demise.
Critics of Celadon management say a deep-seated, clubby culture helped propel the Indianapolis-based trucking giant toward financial ruin.
The company moved goods for many well-known companies, including Alcoa, General Electric, John Deere, Philip Morris, Procter & Gamble, Target and Walmart.
CEO Paul Svindland said challenges in the trucking industry, along with fallout from what prosecutors allege was a massive accounting fraud engineered by prior management, proved impossible to overcome.
In addition to numerous criminal charges, the former chief operating officer and chief financial officer of Indianapolis-based Celadon Group are facing a civil suit filed Thursday by the U.S. Securities and Exchange Commission.
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.