This week has brought the largest bankruptcy in truckload history Celadon Group Inc., which was based in Indianapolis, Indiana. The company filed for bankruptcy on December 8 and announced it would close its doors.

"We have diligently explored all possible options to restructure Celadon and keep business operations ongoing, however, a number of legacy and market headwinds made this impossible to achieve," said Paul Svindland, CEO of Celadon, in a statement.

Rumors of a bankruptcy started to fly Friday night when the trucking industry publication FreightWaves published that the company was slated to file for Chapter 11. Sources told Business Insider that Celadon truckers' fuel cards were shut off and that they feared being stranded.

Meanwhile, back in Indianapolis, some 1,300 Celadon employees at the company's headquarters learned what the bankruptcy would mean for them, and their family.

Celadon employees were told in a letter obtained by Business Insider that:

  • Their paycheck will include wages earned through December 7.
  • They qualify for unemployment payments.
  • They will not receive unused vacation time payouts.
  • They are not receiving medical, dental, or vision insurance as of midnight on December 8 a day before they learned that they were getting laid off.
  • Employees should file for health insurance provided under the federal COBRA program that allows the recently-unemployed to remain covered.

Read more: A truckload giant just filed for bankruptcy, and it leaves nearly 3,000 truck drivers jobless

Celadon did not file a notice in compliance with the Worker Adjustment and Retraining Notification (WARN) Act a federal law that stipulates that companies need to alert employees 60 days in advance of mass layoffs or plant closings.

However, Celadon may argue that the a 60-day notification was not possible due to "unforeseeable business circumstances" resulting in the bankruptcy, which excuses companies from filing a WARN report.

Last week,the Securities and Exchange Commission charged two former Celadon executives following a multiyear accounting scandal.

The news plunged Celadon's stock to $0.41 a share on Friday a considerable tumble from the more than $20 a share that the stock was worth in 2015 before the accounting scandal became public knowledge. As of Monday, share prices were at $0.03.

Read the full letter here

Do you work for Celadon? Are you a shipper who used Celadon? Email .

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