Reliance Logistics’ restructuring effort fell apart in its final weeks as cash flow dried up, a key customer disappeared, and lenders began pulling back equipment.

Court filings show the B.C.-based carrier entered creditor protection on Jan. 2 but was deemed bankrupt on March 19 after failing to file a proposal.

A report from the proposal trustee shows the company missed its cash flow projections by about $885,000 — roughly 90% of expected collections — leaving it with about $200 in cash and unable to meet basic obligations.

Lease payments were falling behind as trucks and trailers were repossessed. Payroll obligations weren’t clearly accounted for. The company also wasn’t providing timely financial reporting to the trustee.

At the same time, Reliance had lost its largest customer, which accounted for a significant portion of its revenue.

The company responded by downsizing, reducing staff to about eight office employees and roughly 20 part-time drivers. A large portion of the equipment was returned to lessors, and the company attempted to offload some of its more expensive leases.

Reliance told the trustee it was pursuing new business, including two potential contracts, but couldn’t provide supporting documentation or demonstrate near-term revenue.

With no updated cash flow forecasts and no proposal filed as the deadline approached, the trustee concluded a restructuring was unlikely.

The company was deemed bankrupt days later.

At the time of the NOI filing, the company’s key creditors included Royal Bank of Canada, Daimler Truck Financial Services, and the Canada Revenue Agency, with obligations of approximately $1.7 million, $3 million, and $3 million, respectively. The CRA claim stems largely from unremitted payroll source deductions, which triggered enforcement action diverting customer payments and accelerating the company’s cash-flow collapse.

At the time of bankruptcy, Reliance reported about $12.7 million in liabilities, including more than $5.2 million owed to secured creditors.

Its trucks and trailers — valued at roughly $3.7 million — are largely financed, leaving secured lenders first in line. The trustee expects proceeds from asset sales won’t cover secured debt, meaning unsecured creditors are unlikely to recover anything.