US-based truckload shipping company, Celadon Group, announced today it has disposed of its A&S Kinard and Buckler Transport subsidiaries in an all cash transaction.
The company has also entered into a Fifteenth Amendment to its credit facility. The amendment, among other changes, reportedly provided for the following: consent framework for the A&S/Buckler disposition as well as an additional contemplated disposition that is expected to occur by 15 April; reduction of the previous pay down requirement and extension of the pay down rate from 31 March to 15 April to align the credit agreement terms with the expected net proceeds and timing of the A&S/Buckler disposition and the other contemplated disposition; reset of the maximum borrowing amount and maximum outstanding amount available under the credit facility to align with the revised pay down requirement and timing; additional funds for liquidity and revised financial covenants through 24 May.
“We appreciate the contributions of A&S/Buckler team over the several years they were part of our Celadon family of companies,” said Celadon Group CEO, Paul Svindland.
“They have outstanding businesses and will find a strong fit and home at Day & Ross, which is building a leading dedicated truckload business in North America. We expect that all A&S/Buckler stakeholders – drivers and other employees, customers, and vendors – will experience a smooth transition and a bright future.
“Over the past several quarters, we have been diligently focused on streamlining our business, improving the results of our core North American truckload operations, improving our capital structure, and resolving the accounting, litigation, and regulatory issues that had arisen under prior management.
The sale of A&S/Buckler marks another material milestone toward executing our plan. We anticipate additional announcements in the near term as we focus on positioning the Company to pay down additional debt, refresh our tractor fleet, complete our financial restatement and audits and solidify our capital structure,” he said.
Celadon Group provides long haul, regional, local, dedicated, intermodal, temperature-protect and expedited freight services across us US, Canada and Mexico.