One of Canada’s biggest trucking carriers has filed for bankruptcy protection after lender Mitsubishi HC Capital America filed a lawsuit seeking $100 million.
Pride Group filed Thursday for creditor protection under the Companies’ Creditors Arrangement Act (CCAA) in Canada, which gives the company a stay of proceedings for at least 10 days.
“We have taken these steps to commence the CCAA proceedings and to seek recognition under the Chapter 15 cases so that we can maintain our current operations, stabilize our business, establish governance controls and monitoring, and develop a plan to restructure for the benefit of our stakeholders. We believe this is in the best interests of all of our employees, customers, business partners and other stakeholders,” the company said in a news release.
The bankruptcy protection filing came after Mitsubishi HC Capital filed lawsuits accusing the Pride Group’s Sulakhan “Sam” Johal, president and CEO, and Jasvir Johal, vice-president, of defaulting on payments they had personally guaranteed, according to TruckNews.
Mitsubishi HC Capital is seeking damages of $100 million in the lawsuits.
Mississauga, Ontario-based Pride Group is a North American truckload carrier operating a fleet of 391 tractors and 1,200 trailers with terminals in Ontario, Quebec, Alberta and Illinois.
Pride Group acquired Texas-based truckload carrier Arnold Transportation Systems in 2022. The acquisition increased Pride Group’s transportation assets to 805 trucks and 2,600 trailers in Canada and the U.S.
Along with Mitsubishi HC Capital, more than 20 other lenders have filed claims totaling $637 against Pride Group, according to filings with the U.S. Bankruptcy Court for the District of Delaware. They include Daimler Truck Financial Canada ($193 million), Daimler U.S. (US$69.7 million), Paccar Financial ($46.9 million), and Volvo Financial Services Canada ($9.8 million).
Eddie c Hooper
And they own Arnold Transportation np wonder that place has turned into a s show
George Philip Beck
It a shame that companies can build up this much debt. This is a classic example of a leadership strategy being unrealistic and a management team reaching too high to meet the unrealistic goals.
Alex P
I guess the bubble burst in the end
JERRY MCNAMARA
Force all management, starting from supervaiser to presidents to cut their salaries half. The it will be funds to pay off debt piece by piece. Do not let them for bankrupcy.
Jim
These cut throat companies that take trucks n sell them to owner ops n rip off theitr lenders n then dont pay their bills plus cut the price on loads haul for cheap and dont pay their owner ops n pocket the $$$ and now want people to feel sorry for them ?? Quit funding these foreing cut throat companies
They need to be deported back to were they come from
Stephen Webster
A major rental for construction and freight trucks
I hope the gov will step in and act as a receiver with a $250 million line of credit in return for a 40% interest in the assets I. Canada
They probably helped out many truck drivers that were new to Canada in the past 5 years
The whole trucking industry in trouble in Canada
Bryan Hardy
If you are in a room with a cobra and an Indian business man keep your eye on the man as he is the most dangerous.
Mike
Who’s next?