Bankrupt Celadon Group has sold its Mexican businesses to Jaguar Transport Inc. in a deal worth $6.8 million, according to court documents filed Monday.
The most recent court filings are part of the U.S. Bankruptcy Court for the District of Delaware hearings for the trucking company, which filed for Chapter 11 bankruptcy in December.
Jaguar Transport outbid two other parties during a public auction held via Zoom on Thursday. Jaguar’s winning $6.8 million bid was subsequently adjusted to $6.1 million after a stock and asset purchase agreement with the debtors.
The representative for Jaguar Transport in the transaction was R. Emmett McNulty, according to court documents.
Celadon’s Mexico assets include wholly owned subsidiaries Celadon Mexicana, Jaguar Logistics and Leasing Servicios, according to filings.
The sale also includes five 2015 International ProStar Class 8 trucks manufactured by Navistar, and 75 trailers (72 dry van trailers and three heated trailers).
Jaguar Transport’s acquisition also includes the purchase of Celadon’s trucking terminal in Nuevo Laredo, as well as assuming the lease for terminals in the Mexican cities of Monterrey, Mexico City, Querétaro and San Luis Potosí.
Two previous deals for Celadon’s Mexico assets fell through in recent months, including a proposed $7 million sale to P.A.M. Transportation Services in February and White Willow Holdings’ bid to buy the business for $2.4 million in May.
As part of the acquisition of Celadon’s Mexico businesses, Jaguar Transport also assumes liabilities from Celadon’s bankruptcy.
More than 75 truck drivers in Mexico have filed labor lawsuits against Celadon claiming unpaid wages totaling $1.6 million. Five commercial businesses in Mexico also have pending lawsuits against Celadon totaling $1.2 million.
Not included in the sale of Celadon’s Mexico businesses were 51 Wabash truck trailers that had been financed by Cincinnati-based Huntington Bank. The bank had previously filed a motion to block the sale of Celadon’s Mexico business, saying it was owed more than $3 million for the trailers.
Click for more FreightWaves articles by Noi Mahoney.
