INDIANAPOLIS, Ind. (WTHR/WFIE) - Indianapolis based trucking company, Celadon, has filed for bankruptcy.
CEO Paul Svindland confirmed the company’s filing for Chapter 11 bankruptcy at midnight. He said the entire company will shut down all business operations except for the “Taylor Express” subsidiary in Hope Mills, North Carolina.
Svindland the company will ensure drivers deliver their last loads safely and will then be instructed on where to deliver their equipment.
A source tells our NBC sister station, WTHR, that thousands of Celadon drivers are left jobless and stranded across the U.S. because company gas cards have been shut off.
On Thursday, U.S. Attorney Josh Minkler announced the indictment of former COO William Meek, 39, and former CFO Bobby Peavler, 40, both of Indianapolis.
They now face charges including wire fraud, securities fraud and conspiracy to commit fraud.
Minkler says the pair concocted and carried-out a complex scheme to inflate the company's value and when the plan unraveled two years ago, shareholders lost more than $60 million.
"As alleged in this indictment, Celadon's books did not reflect the fact that the value of their trucks declined during 2015 and 2016 by tens of millions of dollars," said Minkler.
Minkler said the indictment also alleges Meek, Peavler and others obtained a $25 million loan for their company to falsely pay down a debt but never revealing to lenders or others that it was a loan and then paying back $27 million days later.
If convicted, they could face decades in prison.