Pride Group owner seeks stay of proceedings until June 30
Sulakhan “Sam” Johal, co-founder and CEO of beleaguered Pride Group, will appear in a Toronto court April 5 to seek a stay of proceedings that would extend creditor protections until June 30.
The initial protections given under the Companies’ Creditors Arrange Act (CCAA) were to last only 10 days. Randall Benson, assigned as chief restructuring officer (CRO) for Pride as it looks to restructure its business and stay afloat, said the stay is necessary to ensure the company’s survival.
“Without the relief requested, including the extended stay of proceedings, the Pride Entities face an immediate cessation of its ongoing concern operations, the liquidation of their assets, and far-reaching effects on the livelihoods of many people [in] the Canadian and U.S. trucking and logistics communities,” Benson said in an affidavit.
Pride has also secured a $30-million Debtor-in-Possession (DIP) financing, led by RBC. The loan assures Pride is able to continue operating during the proceedings. DIP financings are intended to allow a business in creditor protection to continue operating, while giving the lender priority over a debtor’s assets, if and when they are distributed.
The DIP agent and CRO have put together a Real Estate Monetization Plan, that will require Pride Entities to list all their real estate properties for sale by no later than May 1. The CRO, in consultation with the monitor, will oversee the listing and sale of each property.
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These individuals were careless in management and financial matters. They bought waaay too much equipment, real estate, etc. and when the crap hit the fan notwithstanding Covid 19 along with driver issues, spot market crisis…they got caught short, now they expect extended time to refunded money and assets elsewhere. They just over extended with champagne taste ideology abd it has backfired.
It would be very interesting to k ow how much money is actually owed to the Canada Revenue Agency with respect to hst, employee deductions and so forth.
It seems we know the figures for all the suppliers, vendors etc.
They were fully aware that they were in trouble way back. and did nothing. Now they want time. No. Let them die, like others in the pass. The good drivers & staff will have no issues finding employment, Bad ones we can say good luck.
Let them fold, the industry is better off without them. Good drivers will find other companies to drive for and bad drivers will be pushed out of the industry.
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The problem is that they clise today reopen tomorrow new names on all I don’t understand what their problem is this timebĥ
It is not nice to go under. But growing from selling a couple of trucks to 50 locations and twenty thousand units in about 13 years is asking for trouble. Prices of transport are on average on the spot market 30% below what it should be.
The driver and co operations kills the industry. The company that goes that route is saving on Workers comp do not vacation pay or holiday days. Benefits etc
This is on average $20,000 per driver per year. All that is killing the industry.
And there is enough work for truck drivers so they will not be unemployed for long.
Trucks who are financed true Pride by Mercedes öre Volvo etc have always the option to take over the contract themself if the OO is financially stable.
So it is not all that bad. Then they will be real OO. Just saying.
And logistics side didn’t the guy in charge put Bruce R Smith in bankruptcy?
Why should creditors have to wait for what they are owed? Doubt it would be the other way around if Pride was waiting for their money.
This probably won’t work, they owe too much. As well, their web of companies is self serving and looking very sleezy with the many trucking concerns which seem to only support vehicles and trailer sales to desperate new drivers.