Indiana-based trucker files for bankruptcy, thousands of jobs at risk

Celadon Group has faced significant costs related to a federal investigation

INDIANAPOLIS (AP) — An Indiana trucking company with nearly 4,000 employees said Monday it filed for bankruptcy and will shut down all operations, just days after two former officials were charged in a fraud scheme.

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Celadon Group has faced significant costs related to a federal investigation and also must deal with debt and “enormous challenges" in the industry, chief executive Paul Svindland said in a statement.

FEMALE TRUCKERS TAKE THE WHEEL IN RESPONSE TO DRIVER SHORTAGE

William Meek, 39, and Bobby Lee Peavler, 40, were indicted on conspiracy and other charges. They knew the value of a substantial portion of Celadon’s trucks had declined and that many trucks had serious mechanical issues that made them unattractive to drivers, according to the indictment.

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Earlier this year, Celadon agreed to pay $42.2 million to settle securities fraud allegations stemming from falsely reporting profits and assets.

Celadon said it was the largest provider of international truckload services in North America.

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“We have diligently explored all possible options to restructure Celadon and keep business operations ongoing. However, a number of legacy and market headwinds made this impossible to achieve," Svindland said.