While not saying it actually is closing.....it is what it is!!
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Celadon Group
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Celadon Group to Assist Priority Transportation with Customer Loads, Collection of Accounts Receivable, and Marshalling Equipment
Tue Aug 26, 4:45 PM

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INDIANAPOLIS--(BUSINESS WIRE)--Celadon Group Inc. (Nasdaq: CLDN) announced today that one of its wholly-owned subsidiaries has signed a receivables collection and equipment marshalling agreement with Priority Transportation, a wholly-owned subsidiary of Priority America (“Priority”). Under the agreement, 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.

Andy Howley, Priority Chief Executive Officer, stated, “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. We have entered into an agreement with Celadon to assist in the wind-down of operations and to help ensure continuity of customer service.”

Steve Russell, Celadon Chairman and Chief Executive Officer, stated, “We are delighted with the opportunity to assist Priority and its customers in an orderly transition of business. In this situation, a strong carrier can provide needed stability for all involved, and we believe Celadon fits that role. 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. We believe that Celadon can enhance service to Priority’s customers through an upgraded equipment fleet, excellent technology, more available assets for dispatch, and an outstanding safety record. Further, Celadon is a SmartWay Transport Partner, with the highest score possible from the standpoint of fuel efficiency. Through its international operations in Canada and Mexico, Celadon can provide a broader range of service to Priority’s customers.”

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

This press release and statements made by Celadon in its stockholder reports and public filings, as well as oral public statements by Celadon representatives, may contain certain forward-looking information, usually identified by words such as “anticipates,” “believes,” “estimates,” “projects,” “expects,” “plans,” or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Celadon's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in forward-looking statements. With respect to the Priority agreement, the risks and uncertainties include, but are not limited to, the risk that Celadon may not receive a significant number of loads or ongoing customer business; and the risk that providing service will distract from existing operations. With respect to general business operations, the following factors, among others, could cause actual results to differ materially from those in forward-looking statements: excess tractor and trailer capacity in the trucking industry; decreased demand for our services or loss of one or more of our major customers; surplus inventories; recessionary economic cycles and downturns in customers' business cycles; strikes, work slow downs, or work stoppages at our facilities, or at customer, port, or other shipping related facilities; our ability to execute our strategic plan; increases in compensation for and difficulty in attracting and retaining qualified drivers and independent contractors; increases in insurance premiums and deductible amounts; elevated experience in the frequency or severity of claims relating to accident, cargo, workers' compensation, health, and other matters; fluctuations in claims expenses that result from high self-insured retention amounts and differences between estimates used in establishing and adjusting claims reserves and actual results over time; increases or rapid fluctuations in fuel prices, as well as fluctuations in hedging activities and surcharge collection, the volume and terms of diesel purchase commitments, interest rates, fuel taxes, tolls, and license and registration fees; fluctuations in foreign currency exchange rates; increases in the prices paid for new revenue equipment; increases in interest rates or decreased availability of capital or other sources of financing for revenue equipment; decreases in the resale value of our used equipment; seasonal factors such as harsh weather conditions that increase operating costs; competition from trucking, rail, and intermodal competitors; regulatory requirements that increase costs or decrease efficiency, including revised hours-of-service requirements for drivers; our ability to identify acceptable acquisition candidates, consummate acquisitions, and integrate acquired operations; the timing of, and any rules relating to, the opening of the border to Mexican drivers; challenges associated with doing business internationally; our ability to retain key employees; and the effects of actual or threatened military action or terrorist attacks or responses, including security measures that may impede shipping efficiency, especially at border crossings. Readers should review and consider the various disclosures made by Celadon in this press release, stockholder reports, and in its Forms 10-K, 10-Q, and other public filings. Celadon disclaims any such obligation to update or alter its forward-looking statements whether as a result of new information, future events, or otherwise.

Celadon Group
Craig M. Koven, Communications Manage