Grace Road Lines placed into receivership
Calgary-based Grace Road Lines and its related real estate holding company Goodwill have been placed into receivership.
This, after RBC called for payment of its loans totaling about $12 million. Grace Road is a longhaul trucking company that employs more than 100 people as drivers, dispatchers and in office roles.
President Surjit Parmar, who is also director and 50% shareholder of both entities, said in an affidavit he’s confident the company – given more time – can secure financing and finalize property sales that will enable it to pay back RBC.
“Goodwill and Grace Road just need a little more time to close the sale of the Conrich Property and RBC’s cooperation by agreeing to remove its encumbrances to allow for the sale of the Conrich Property. Depending on the actual net sale proceeds, RBC would have between 42-44% of its outstanding debt repaid on April 1, 2025,” Parmar said in its affidavit.
He said the company’s business is rebounding after a “difficult year” in 2023. Parmar founded the company in 2007, along with partner Inderpal Singh.
Grace Road’s 2023 year-end financial statements showed an operating loss of $2 million, and a $1.8-million overall net loss. RBC, lacking confidence that the companies could meet their financial covenants, demanded repayment in full last October.
“RBC has material concerns regarding the status, stability, and preservation of its security,” the lender said in court filings.
“In particular, RBC is concerned that as a result of the Grace Road’s assets being made up primarily of moveable semi-trucks which travel between provinces, and Canada and the U.S., that these assets are at risk of dissipation if they remain in the possession of the borrowers. RBC is further concerned that the borrowers may be dissipating assets or not being forthwith regarding the status of their operations as they have not cooperated with GTL (receiver Grant Thornton Ltd.) monitoring their businesses notwithstanding them previously consenting to GTL acting as RBC’s financial advisor and monitor of the borrowers. Despite the breaches under the Goodwill Credit Agreements and Grace Road Credit Agreement, RBC has been patient with the borrowers and now requires the indebtedness to be repaid through enforcement of its security.”
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They don’t have to worry. They just have to get their lawyers cite Pride precedence, and they can buy it back for 3 1/2 cents on the dollar, or about $420,000.00 … easy peasy.
You shut them down now and they’ll be up and running again tomorrow under another LTD name. It’s been common in this province.
You will see many more good companies close because we have about 10 000 too many trucks and drivers for current freight volume
This after over 15 000 thousand that left the industry in the past 26 months. .In my opinion if 30 000 less truck drivers had of came in as foreign students or foreign truck drivers for more than 8 months from April to Nov we would not have had these closed trucking companies and the extremely low rates and the low wages. That have caused a sharp increase in the numbers of driver inc and semi lease ops in my opinion.