Judge Approves Celadon’s $2 MILLION Emergency Plan to Save Taylor Express
Hope Mills, NC – An emergency ruling in Celadon Group’s bankruptcy case will allow the carrier to save the last of it’s only operational subsidiary.
In an emergency hearing on Monday in U.S. Bankruptcy Court for the District of Delaware, Celadon Group’s legal counsel told Judge Karen B. Owens the carrier would be forced to shut down and liquidate the last of its subsidiaries, Hope Mills, NC-based Taylor Express, Inc., unless she immediately approved a plan allowing for an additional $2 million in financing.
As part of Celadon’s chapter 11 bankruptcy case, the carrier declared it would be ceasing operations and liquidating the remaining assets of 25 of its 26 companies.
However, Celadon’s Senior Vice President of Finance, Kathryn Wouters, declared in the filing that the company intended to continue operations at the approximately 160-truck Taylor Express with the goal of preserving its market value and selling it on a “standalone, expedited basis.”
Last Friday, Celadon’s representatives called for an emergency hearing arguing an additional $2,000,000 in financing was essential in preserving Taylor’s market value.
On Monday, the now defunct mega carrier informed Judge Owens it had reached a $2.2 million financing agreement with Blue Torch Finance in a last ditch attempt to save Taylor Express.
Celadon’s legal counsel warned that if the carrier did not receive access to at least $1 million of the financing by Monday, “Taylor’s operations will need to be shut down because it will not have access to sufficient funds to pay for the continuation of its business, including payroll and related taxes, and the going concern value of Taylor will be lost.”
After hearing the evidence in the case, Judge Owens ruled in favor of Celadon Group.
Judge Owens said that granting “supplemental interim relief” was “necessary to avoid immediate and irreparable harm” to Celadon Group.
Celadon’s management will now have access to $1.2 million of the funds between Monday and January 3, 2020, when a final hearing on the matter is scheduled.
The bidding procedures and terms of the auction relating to Taylor Express are also expected to be finalized at the January 3 hearing.
Celadon Group acquired Taylor Express in January 2015.
Taylor’s specialty is it’s bulk hopper fleet, in which drivers pull specialized hopper-bottom trailers carrying raw carbon black to the carrier’s tier-1 customer base in the commercial tire industry.
Read more about Taylor Express HERE.
TransportationNation.com will continue to follow new developments in the case.
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