INDIANAPOLIS – Celadon Group Inc. (Nasdaq-GS: CLDN) announced today that one of its wholly-owned subsidiaries has signed a receivables collection and equipment marshalling agreement with Priority Transportation, a wholly-owned subsidiary of Priority America (“Priority”). Under the agreement, Celadon has agreed to use reasonable efforts to cover certain customer loads, to assist a secured lender in retrieving tractors and trailers under defined circumstances, and to assist in the collection of accounts receivable. Celadon will not purchase any assets under the contract.
Andy Howley, Priority Chief Executive Officer, stated, “Due to continued high fuel prices, weak freight demand and escalating operating costs, as well as a tight credit market, Priority will be phasing out of most of its over the road operations, which include its trucking operations in Farmington, N.Y. and Chesterton, Ind. We have entered into an agreement with Celadon to assist in the wind-down of operations and to help ensure continuity of customer service.”
Steve Russell, Celadon Chairman and Chief Executive Officer, stated, “We are delighted with the opportunity to assist Priority and its customers in an orderly transition of business. In this situation, a strong carrier can provide needed stability for all involved, and we believe Celadon fits that role. On a longer term basis, one of our goals is to continue to broaden our customer base with quality customers, and add density in our primary traffic lanes. "We believe that Celadon can enhance service to Priority’s customers through an upgraded equipment fleet, excellent technology, more available assets for dispatch, and an outstanding safety record. Further, Celadon is a SmartWay Transport Partner, with the highest score possible from the standpoint of fuel efficiency. Through its international operations in Canada and Mexico, Celadon can provide a broader range of service to Priority’s customers.”
Celadon Group Inc. (www.celadongroup.com
), through its subsidiaries, primarily provides long-haul, full-truckload freight service across the United States, Canada and Mexico. The company also owns TruckersB2B Inc. (www.truckersb2b.com
) which provides cost savings to member fleets; Celadon Dedicated Services, which provides supply chain management solutions, such as warehousing and dedicated fleet services; and Celadon Brokerage Services.