Celadon interim DIP financing OK’d; final hearing set for Jan. 3

By Caroline Salls

Pittsburgh, Dec. 11 – Celadon Group, Inc. obtained court approval to access $9.05 million in debtor-in-possession financing on an interim basis, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for Jan. 3.

The company said the financing will be used to support the going-concern operations of the Taylor Express debtor.

Blue Torch Finance LLC is the DIP facility agent.

The DIP loan will bear interest at the Base rate plus 1,250 basis points.

The facility will mature on the earliest of March 31, subject to a one-month extension, 25 days following the date of entry of the interim order if a final order has not been entered, completion of a sale of all or substantially all of the loan parties’ assets, the effective date of a plan of reorganization and the date the loans are accelerated.

Celadon provides long haul, regional, local, dedicated, intermodal, temperature-protect and expedited freight service and is based in Indianapolis. The company filed bankruptcy on Dec. 9 under Chapter 11 case number 19-12606.

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