One of Canada’s largest trucking companies has filed for bankruptcy protection after lender Mitsubishi HC Capital America filed a lawsuit seeking $100 million.
Pride Group on Thursday filed for protection from its creditors under Canada’s Companies Creditors Arrangement Act (CCAA), which grants the company a stay of proceedings for at least 10 days.
“We have taken these steps to commence proceedings under the CCAA and seek recognition under Chapter 15 matters so that we can maintain our current operations, stabilize our business, establish governance controls and oversight, and develop a restructuring plan for the benefit of our stakeholders. “We believe this is in the best interest of all of our employees, customers, business partners and other stakeholders,” the company said in a statement. Press release.
The bankruptcy filing comes after Mitsubishi HC Capital filed lawsuits accusing Sulakhan “Sam” Johal, president and CEO of Pride Group, and Jasvir Johal, vice president, of default they personally committed. guaranteed, according to TruckNews.
Mitsubishi HC Capital is seeking damages of $100 million in these lawsuits.
Pride Group, based in Mississauga, Ontario, 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 United States.
Along with Mitsubishi HC Capital, more than 20 other lenders have filed claims totaling $637 against Pride Group, according to documents filed in the U.S. Bankruptcy Court for the District of Delaware. They include Daimler Truck Financial Canada ($193 million), Daimler US ($69.7 million), Paccar Financial ($46.9 million) and Volvo Financial Services Canada ($9.8 million).
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