Light Speed dismantled as lenders seize assets, auction process begins
The collapse of Light Speed Logistics has escalated into a full-scale breakup, with multiple lenders moving to seize and sell off assets across Canada and the United States.
Court filings show at least three separate receiverships are now in place, each tied to different secured lenders. National Bank of Canada appointed Ernst & Young to oversee approximately 275 refrigerated trailers, while CIBC secured a separate receivership covering accounts receivable and 92 trailers. The Business Development Bank of Canada (BDC), which is owed about $15.5 million, appointed MNP to control additional assets and the company’s holding entity.
The receivership process has effectively shut down the company’s operations. MNP took control of the company’s Calgary-area facility, restricted access and froze bank accounts while working with other court-appointed receivers to locate and secure equipment spread across North America.
Once a cross-border refrigerated carrier serving 48 U.S. states and operating coast-to-coast in Canada, Light Speed is now being dismantled through a mix of private sales and public auctions, court filings reveal.
A March 5 court order approved an auction process through Ritchie Bros. Auctioneers (Canada) Ltd., allowing trucks and trailers to be sold “free and clear” of claims, with proceeds distributed to creditors based on priority.
At the same time, Ernst & Young reports that asset sales are already underway, with multiple transactions completed or pending as receivers move quickly to monetize equipment.
The liquidation process is being complicated by the scale and location of the fleet. Equipment is spread across Canada and the U.S., and court filings indicate at least 20 trailers remain unaccounted for.
The company’s real estate is also being marketed for sale, including its Rocky View County, Alta., facility, which is expected to be listed at about $15 million.
Former employees have been directed to federal wage protection programs, indicating layoffs have already occurred as operations ceased.
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Another case of finance companies getting all “glassy eyed” when big talkers come in with their big ideas – in the case it was our own government (BDC). No transport company grows at “lightspeed” via profits. They grow because they can dazzle, baffle and borrow. I have no sympathy for these finance companies.
Does anyone actually investigate the shut-down? Rumors are the original owner(s) are purchasing back their own equipment for pennies on the dollar, and have secured a yard in Calgary to start up again under a different name. I feel bad for the drivers & owner/ops that didn’t get paid…