What Happens Now That Celadon Filed Bankruptcy?

By: ClassADrivers.com

After 34 years of operation, the trucking company Celadon filed for bankruptcy last week catching most of their employees off guard. As a result, about 4,000 truckers were left stranded in the middle of nowhere, both with and without loaded trucks.

And that is just at the Indianapolis branch. Celadon has subsidiary companies throughout North and Central America, all of which were suddenly laid off without warning.

Chapter 11 Bankruptcy

According to a statement issued in the Delaware federal court, Celadon had approximately $427 million in assets as of December 2nd. The total amount of debt owed was roughly $391 million, but Celadon took in$611 million in revenue this year alone. It’s understandable then that you may be wondering how such a successful company went under.

Unlessof course you know about the two Celadon executives that were arrested prior to the bankruptcy announcement. Then, things might be a bit clearer.

The two former employees in question were apparently caught cooking the books, over-inflating old semi-truck value, and other white collar crimes. Although this came to a head back in 2017 when Celadon’s stock fell by about $62.3 million in one day, the aftereffects are just now being felt company wide.

One such penalty is that Celadon now owes the Justice Department about$33 million.

What Happens to Celadon Truckers?

We never want truck drivers to get bad news, but it’s particularly disheartening during the holidays. And being stranded in the middle of nowhere due to unexpectedly losing your job makes it even worse.

Although truckers will be paid for time and miles leading up to the announcement, the Celadon semi-trucks they were driving still need to be returned. The cost of gas and the lost time to make that return trip will likely fall on the drivers themselves.

This financial hurdle does offer truckers a terrible choice. Either pack up, leave the truck, and pay any fines handed out over what happens to the truck as well as cargo, or pay for the needed fuel out-of-pocket with no reimbursement offered from the bankrupt Celadon.

After, the next step is to find a new job. Of course, Step One for truck drivers looking for work is to make an account at Class A Drivers, and we’ll connect you with all the companies that fit your driving preferences.

Long-haul drivers are in demand, so we hope to get Celadon employees back on your feet quickly. We’re wishing the best for former Celadon drivers over the coming holiday season.