WROXETER – Hyndman Transport Ltd. has been shuttered in the wake of a Chapter 11 bankruptcy filed by parent company Celadon, based in Indianapolis.
Celadon made the announcement that it will shut down all operations on Monday, just days after two former officials were charged in an accounting fraud scheme. In a press release issued by Celadon CEO Paul Svindland, the company has faced significant costs related to a federal investigation of the fraud scheme, as well as ‘enormous challenges in the industry, and our significant debt obligations,’ according to the press release.
“We have diligently explored all possible options to restructure Celadon and keep business operations ongoing,” Svindland stated. “However, a number of legacy and market headwinds made this impossible to achieve.”
Earlier this year, Celadon agreed to pay $42.2 million to settle securities fraud allegations stemming from falsely reporting profits and assets. Celadon’s former president and chief operating officer, William Meek, and former chief financial officer, Bobby Lee Peavler, were also indicted on conspiracy and other charges, and its alleged both knew a substantial portion of Celadon’s trucks had declined in value and that many trucks had serious mechanical issues that made them unattractive to drivers.
According to a federal filing, Celadon is seeking to pay its total 3,800 employees around $3.9 million in unpaid wages, along with more than $1 million in termination bonuses. The termination payment works out to about $267 per worker.
Hyndman Transport has been operating in Canada for over 75 years, and was purchased by Celadon in 2013. Attempts by Midwestern Newspapers to contact Hyndman Transport for comment were unsuccessful, and it’s unknown how many Hyndman Transport employees are affected by the closure.