Celadon moves to sell 20-acre parcel in Indianapolis after bankruptcy filing

Bankrupt Celadon Group Inc. has begun the process of selling its assets to raise capital.

Court documents show the Indianapolis-based truckload freight transportation carrier is putting its truck repair and maintenance facility at 9503 E. 33rd St and 3200 N. Mitthoeffer Road up for sale. 

Chattanooga-based Transport Enterprise Leasing LLC has been designated the "stalking horse bidder," or the initial bid that sets the low bar that other interested buyers cannot bid under. Transport seeks to buy the 20.44-acre property for $2.25 million, according to an asset sale purchase agreement.

New Jersey-based trailer rental service Contract Leasing Corp. is seeking to buy a property at 9420 E. 30th St. in Indianapolis for $900,000 as well as land in Lima, Ohio, for $70,000, according to court documents. 

Celadon's bankruptcy attorney Stuart Brown did not responded to IndyStar requests for comment on the bankruptcy case and pending asset sales. The pending sales are the most recent developments in the bankruptcy of the once storied Indianapolis company. 

If other bids are submitted for the sites, an auction will take place at 10 a.m. on Jan. 22 at the New York City office of DLA Piper LLP, the law firm representing Celadon in the bankruptcy case. A hearing for the sale of remaining assets is scheduled to take place in Delaware before U.S. Bankruptcy Judge Karen B. Owens on Jan. 30.

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Celadon announced on Dec. 9— just days after two former executives were charged in a $60 million fraud scheme — that it and its subsidiaries had filed for Chapter 11 bankruptcy in a Delaware U.S. district court.

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The company immediately ceased business operations that day, putting roughly 4,000 employees out of work.

The shutdown did not include its North Carolina subsidiary, Taylor Express, a transportation company that serves the south and southeast. Celadon intends to operate the company until it finds a buyer to purchase the subsidiary. 

White Willow Holdings has been designated as the stalking horse bidder. The company agreed to pay a base price of roughly $14.5 million.  

Court documents also note that Celadon has received offers for other properties in Ohio, Pennsylvania and Canada.

The company has asked the bankruptcy court for permission to privately sell some properties ahead of the scheduled auction, arguing in court documents that it's unlikely the auction would lead to higher bids. It has also asked the court to shorten the objection period to the sales. 

Celadon has reached an agreement to privately sell a 339,876-square-foot industrial building in York, Pennsylvania, as well as the equipment there for $9.25 million. The buyer is 3400 Market Industrial LLC. 

The company also agrees to privately sell property in Ayr, Ontario, Canada to Wyndham Street Investments Inc., a real estate investor, for $9.19 million . In Winnipeg, the company wants to sell 13.51 acres of land that includes a 17,079-square-foot industrial building and equipment for $4.2 million to a different Canadian investor. 

Meanwhile, Skippers Crew, a limited liability company, with a principal address in Greenfield, Indiana, has placed a $125,000 bid on a property in Ohio. 

Celadon intended to use the bankruptcy proceedings to wind down its global operations in the U.S., Mexico and Canada. At the time of the bankruptcy filing, Celadon provided point-to-point shipping, warehousing, supply chain logistics, tractor leasing and other services

The company continues to manage its properties as a “debtor-in-possession” under the jurisdiction of the Delaware bankruptcy court.

Contact IndyStar reporter Alexandria Burris at aburris@gannett.com or call 317-617-2690. Follow her on Twitter: @allyburris.