Pride Group filed for bankruptcy protection in late March citing debts of more than $630 million, and reports of pending liquidation and imminent closure of one Canada’s largest trucking and leasing companies began to swirl. However, the company has sought and received creditor protection under the Companies' Creditors Arrangement Act and has "sufficient liquidity to continue to operate, and it is business as usual," the carrier said via prepared statement.
The Pride Group continues to seek a buyer for its Pride Group Logistics business, and among the bidders are Pride Group founders the Johal family.
In its report to the court Aug. 8, Ernst & Young noted, given the feedback it has received to date, it "no longer views a going-concern restructuring plan as a feasible option given the lack of stakeholder support for it. Accordingly, the Pride Entities... intend to continue to move forward with a centralized, coordinated and controlled disposition and wind-up of the remaining Pride Entities assets..."
"For clarity, as [of Aug. 15, 2024], PGL is not being wound down. As it stands currently, the Monitor (Ernst & Young) is recommending the continuing pursuit of a going-concern sale transaction supported by the Johal family. That sale, if approved by the Court, would allow PGL to continue as a going-concern for the benefit of its customers, employees and the communities that it serves. Further, Randall Benson, Chief Restructuring Officer of the Pride Group, is recommending the Johal family bid as the preferred option."
The court will hear and make a decision at a future date with respect to any proposed sale of PGL's business. In the meantime, until the court makes its decision, Pride Group said "it is business as usual for PGL's employees, contractors and business partners."
As it concerns the Pride Group's and Tpine's leasing business lines, the company said "it is business as usual for Tpine's employees, contractors, lessees and business partners – lease amounts are being collected and are expected to be paid in accordance with the Court Orders granted in these proceedings."
The court recently approved the sale of Tpine's factoring business as a going-concern sale.
Pride Group, whose business includes retailing and wholesaling of pre-owned trucks and trailers, noted it has determined that a going-concern transaction of its truck inventory and sales is no longer feasible due to the overall state of the trucking and logistics market.
"The Pride Group (excluding Pride Group Logistics) is considering its options, including an orderly disposition of its trucks and trailer assets and, where appropriate, turning over assets to financiers on agreed-upon terms and winding down business lines in an orderly fashion, which minimizes impact on affected stakeholders," the company said via statement. "Should a restructuring option develop involving a standalone truck dealership business, it will be presented to the creditors and the Court for consideration. More information on these decisions will be forthcoming.
