SEVERE WX : Flood Warning View Alerts

Celadon, major Indiana-based trucker, files for bankruptcy

Celadon Group has faced significant costs related to a federal investigation and also must deal with debt and “enormous challenges” in the industry, chief executive Paul Svindland said in a statement.

Posted: Dec 9, 2019 1:36 PM

INDIANAPOLIS (AP) — An Indiana trucking company with nearly 4,000 employees said Monday it filed for bankruptcy and will shut down all operations, just days after two former officials were charged in a fraud scheme.

Celadon Group has faced significant costs related to a federal investigation and also must deal with debt and “enormous challenges” in the industry, chief executive Paul Svindland said in a statement.

William Meek, 39, and Bobby Lee Peavler, 40, were indicted on conspiracy and other charges.

They knew the value of a substantial portion of Celadon’s trucks had declined and that many trucks had serious mechanical issues that made them unattractive to drivers, according to the indictment.

Earlier this year, Celadon agreed to pay $42.2 million to settle securities fraud allegations stemming from falsely reporting profits and assets.

Celadon said it was the largest provider of international truckload services in North America.

“We have diligently explored all possible options to restructure Celadon and keep business operations ongoing. However, a number of legacy and market headwinds made this impossible to achieve,” Svindland said.

Article Comments

Fort Wayne
Overcast
24° wxIcon
Hi: 31° Lo: 18°
Feels Like: 24°
Angola
Overcast
21° wxIcon
Hi: 30° Lo: 17°
Feels Like: 21°
Huntington
Overcast
24° wxIcon
Hi: 30° Lo: 18°
Feels Like: 24°
Decatur
Overcast
24° wxIcon
Hi: 30° Lo: 18°
Feels Like: 24°
Van Wert
Broken Clouds
18° wxIcon
Hi: 30° Lo: 18°
Feels Like: 18°
About Average Tuesday
WFFT Radar
WFFT Temperatures
WFFT National

Community Events