Celadon Group, a provider of truckload freight transportation, said Monday that it has amended its primary credit facility, increasing the maximum borrowing amount by approximately $26 million. The amendment also reset financial covenants based on expected cash needs and asset coverage, and waived certain covenants until Sept. 30; and also allows the company to access additional liquidity through sales or financings involving Canadian assets.
In line with the amended credit agreement, the company has also engaged a middle market financial advisor to assist in the company’s refinancing process. The company also said that it expects to record a non-cash impairment charge of up to $62.4 million upon the completion of the annual review of the carrying value of intangible assets.
Celadon also expects to defer releasing financial results for the quarter ended March 31, and subsequent periods until the conclusion of its previously announced audit committee process