Celadon to acquire Burlington Motor Carriers' assets

| Tuesday, March 19, 2002

p>Since July 2001, Burlington Motor Carriers, a Daleville, IN-based truckload carrier, has operated in a reorganization proceeding. A message posted Friday on the company website announced Burlington was closing its doors.

 

The message said: "Sad yet true! Burlington is liquidating its business. Due to not being able to come up with a suitable buyer, the doors will close on March 18, 2002."

On Mar. 15, the Bankruptcy Court approved an offer from Indianapolis-based Celadon Group Inc. to purchase certain assets - including tractors and trailers, customer contracts and lists, office equipment and general intangibles - from Foothill Corporation, a secured lender to Burlington Motor Carriers of Daleville, IN.

Steve Russell, CEO and founder of Celadon, told Land Line his company had acquired the customer list and that company resources were working hard to focus on how much business the company could expect to get from Burlington's former customers. Russell said Celadon was getting a good reaction from those customers, and how "many miles" Celadon secures from this business will determine how far the company can go as far as offering positions to Burlington company drivers and owner-operators. Celadon also plans to offer positions to certain administrative and maintenance employees of Burlington, related to the amount of business that Celadon ultimately acquires.

One source at Burlington, on the condition of anonymity, said Celadon would not likely offer positions to those owner-operators in the Burlington lease purchase program, but Celadon's Russell told Land Line it depended on whether or not the underlying financier was Foothill.

In addition to acquiring some of Burlington's assets, under terms of the agreement, Celadon also would assist Foothill in collecting trade and other receivables.

Financial terms of the transaction were not disclosed.

Celadon is one of the 10-largest truckload carriers in the United States and the largest transporter of truckload freight between the United States, Canada and Mexico.
-- Sandi Soendker, Managing Editor

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