MJP –
A large trucking firm is currently in the bankruptcy liquidation process after being unable to sell itself over the lengthy procedure.
A big shipping concern, Pride Group Holdings, has been in bankruptcy for months.
In March 2024, the business sought protection under the Companies Creditors Arrangement Act of Canada, stating that their financial difficulties were mostly caused by the COVID-19 epidemic.
This matter is presently being considered in the Superior Court of Justice in Ontario.
The Mississauga, Ontario-based Pride Group Holdings filed for Chapter 15 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware on April 1st, following their Canadian petition.
They took this action to protect their assets in the United States from creditors and to have their current legal processes recognized in Canada.
After the outbreak, Pride released a statement that blamed several issues for their financial difficulties.
According to them, the trucking business was hit hard by falling demand for transportation services, soaring diesel fuel prices, increasing borrowing rates, and a surplus of trucks and drivers in North America.
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According to FreightWaves, Pride Group had 50 owned and leased facilities across Canada and the United States, and its fleet of about 20,000 tractor-trailers was either owned, leased, contracted for service, maintained, or securitized when it filed for bankruptcy.
Ernst & Young’s Twelfth Monitor Report, prepared for the CCAA, noted that as of August 6, the debtor possessed 1,383 of the 1,459 trucks and trailers that made up Pride Group’s fleet.
It had 95 drivers and 110 office workers on duty back then.
Within the agency sector, there were 120 driver subcontractors, around 140 owner-operators, and 75 drivers from four partner carriers.
According to court documents, Pride’s stakeholders have allegedly turned down a buyout offer. As a result, the debtor formally requested an extra $50 million in DIP financing to facilitate a controlled wind-down of its activities on August 7 through a CCAA motion.
Pride Group, on the other hand, asserted in a statement it issued on August 15 that it had enough cash on hand to stay in business even as it searches for a going-concern buyer for the business.
There was no winding down of the corporation, it added, as of the statement’s date.
