Celadon Requests Emergency Hearing and $2 MILLION to Save Taylor Express
Indianapolis, IN – Celadon Group’s legal representatives say the now defunct mega carrier is on the brink of losing its only subsidiary still in operation.
In a motion filed on Friday in U.S. Bankruptcy Court for the District of Delaware, Celadon’s legal team argued the carrier will be forced to shut down and liquidate the last of its subsidiaries, Hope Mills, NC-based Taylor Express, Inc., if the court does not approve an additional $2 million in financing.
As part of Celadon’s chapter 11 bankruptcy filing, 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.”
Subsequently, United States Bankruptcy Judge Karen B. Owens approved an up to $9,050,000 financing agreement the carrier reached with Blue Torch Finance in order to pay its more than $5 million in workforce obligations and to aid in the “wind down” of the business.
As part of that agreement, Celadon allocated $450,000 for the ongoing operations of Taylor Express.
$2,000,000 or Taylor Express Goes Bust
However, on Friday, Celadon’s counsel informed Judge Owens the carrier had reached an “amended” financing agreement with Blue Torch Finance of up to an additional $2,000,000.
Celadon’s legal team argued the additional $2,000,000 was essential in preserving Taylor’s market value.
Without being granted access to $1,000,000 of the financing by Monday, December 16, 2019, Celadon’s representatives warned, “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.”
An emergency hearing on the matter has been set for Monday, December 16 at 11:30 a.m.
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About Taylor Express
According to its website, the company was founded and incorporated in 1987 as a truckload carrier.
The company says it is a “leading carrier in the tire and rubber industry, providing dedicated services on critical raw materials for the tire industry and many other well known companies like Kohler, Lowes Hardware and Purolator.”
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.
The specialized carrier operates primarily in the South and Southeast regions.
Celadon Group acquired the company in January 2015.
According to the latest data from the Federal Motor Carrier Safety Administration, Taylor Express operates 169 power units and has 161 drivers.
TransportationNation.com will continue to follow new developments in the case.