Falcon Xpress placed into receivership
Falcon Xpress Transportation Group has been placed in receivership, owing RBC more than $15 million.
The companies entered into a forbearance agreement in January, however RBC says the debtors breached that agreement.
The debtors also requested an extension to April 30, claiming terms of a new financing agreement had been reached with another lender, which would enable Falcon to pay out its RBC debt in full.
Jarnail Singh Sidhu is the sole director of Falcon Xpress and its related real estate. A judge appointed msi Spergel as receiver on April 25, effective May 16.
RBC’s legal team argued for the appointment of a receiver after Falcon Xpress missed payments in violation of the forbearance agreement and had its EDC insurance suspended for missed payments. (Falcon was able to bring its insurance payments up to date and had its policy reinstated, court filings show).
The company was also behind in property tax payments on its property at 6086 Mayfield Road in Caledon, Ont.
Established in 2004, court filings suggest Falcon employed about 300 people.
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ROSS, not only SOUTH EAST ASIAN, do you know abot JBT Transport? Heritage Transport and Drumbo Transport?
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It has become abundantly clear that engineered failure is far more profitable than working hard to build a successful business and the returns come far faster when you can leverage your creditors in to a “reorganization” which is just another way of saying I want to keep my assets but I only want to pay a small percentage of what I previously agreed in writing to do.Time to put a stop to this because it just emboldens more bad actors to do the same thing.
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You can’t haul for less than your cost to operate per mile.
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It’s not just south east Asian, the trucking industry as a whole has gone through a lot since covid especially in the last 2 years. In the last two years there has been a freight recession. To much freight capacity in the industry which meant those looking to ship were dictating the prices. South of the border thousands of trucking companies have gone out of business because of this. But yeah, a lot of trucking companies expanded during the height of the covid lockdowns to meet the demand of all the online shopping. There’s other factors that contributed but that’s the biggest.
My experience comes from being an owner operator in the industry.
Ross Lambert, that is very true. Why is the Canadian government allowing that they should not be able to start another company? But they will use a different name and start another company. The people that suffer are the employees and the customers.
I sold my truck and trailer and oh wait when I saw the demographic changing in the trucking in the street, then I bought a crane. Then I bought another crane., then I bought another cream, then I bought a piece of property with a shop, then I bought another crane. then I became debt-free.. I’m 62 now, I’ll probably look for a buyer and finance them.
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Rich
How easy is it to find crane operators now ? Are young people interested in this type of career ?
Thanks
Nick Suozzi
Colin Anten Eldridge
Stalking horse
Is interested in falcon Express transportation in Toronto Ontario; is interested in taking it to the next level with new financing communication has been reached with one of the employees of falcon Express transportation and hope that they’ll get back to us on Monday for further talks
Curious why lately there have been numerous trucking companies going bust ?? All claiming bankruptcy and even more curious but not at all surprising is that they are ALL owned and operated by wealthy people of south east Asian extraction…..Also curious to see when these very same people will start up another trucking company AFTER they pay pennies on the dollar towards their ‘debt’ due to ‘bankruptcy ‘…. Real tired of seeing this scam over and over and over again.!!