Celadon to manage Priority Transportation ‘wind down’

Celadon Chairman and CEO Steve Russell said the company was “delighted” with the opportunity to assist Priority and its customers in the business transition.

The Trucker News Services

8/27/2008

INDIANAPOLIS — A Celadon Group Inc. subsidiary has signed a receivables collection and equipment marshalling agreement with Priority Transportation, a wholly-owned subsidiary of Priority America, the companies said.

Celadon has agreed to use reasonable efforts to cover certain customer loads, to assist a secured lender in retrieving tractors and trailers under defined circumstances, and to assist in the collection of accounts receivable. Celadon will not purchase any assets under the contract.

“Due to continued high fuel prices, weak freight demand and escalating operating costs, as well as a tight credit market, Priority will be phasing out of most of its over the road operations, which include its trucking operations in Farmington, N.Y. and Chesterton, Ind.,” Andy Howley, Priority CEO, said. “We have entered into an agreement with Celadon to assist in the wind-down of operations and to help ensure continuity of customer service.”

Celadon Chairman and CEO Steve Russell said the company was “delighted” with the opportunity to assist Priority and its customers in the business transition.

“In this situation, a strong carrier can provide needed stability for all involved, and we believe Celadon fits that role,” Russell said. “On a longer term basis, one of our goals is to continue to broaden our customer base with quality customers, and add density in our primary traffic lanes.”

Celadon Group Inc. through its subsidiaries primarily provides long-haul, full-truckload freight service across the United States, Canada and Mexico. The company also owns TruckersB2B Inc. and Celadon Dedicated Services, which provides supply chain management solutions, such as warehousing and dedicated fleet services; and Celadon Brokerage Services.