Home Truck News Pride Group granted stay extension to Sept. 30 - Truck News

Pride Group granted stay extension to Sept. 30 – Truck News

A court order dated June 27 has granted Pride Group an extension of its stay period – initially set to expire on June 30 – until Sept. 30.

This as the court has ordered the return of hundreds of trucks and trailers to creditors and as efforts to find a buyer for the company’s remaining assets continue. Pride also requested a further $6.3 million loan as part of its Debtor in Possession (DIP) financing so it can continue operations until Sept. 30.

(Photo: Pride Group)

An initial restructuring plan was delivered June 4 by the restructuring monitor and a revised version is currently being prepared “and will be delivered to the Administrative Agent shortly,” reads the latest Monitor’s Report, dated July 2.

Pride Group will seek the court’s approval of the terms of the DIP amendment July 3. There is no limit to how many stay extensions can be granted.

About 370 trucks have been identified and ordered returned to Daimler and its associated companies in the U.S. and Canada, according to the June 27 court order.

Dozens of other trucks and trailers were also ordered to be surrendered and sold by Regions Equipment Finance and Regions Commercial Equipment Financing, with proceeds to go toward creditors.

Meanwhile, Volvo Financial Services (VFS) has been returned 40 trucks – 17 in Canada and 23 in the U.S. — and has reached a consent order with Pride Group entity TPine, allowing for VFS to sell those vehicles, “the VFS Surrendered Collateral.”

Pride Group sought creditor protection on March 27, under the Companies Creditors Arrangements Act (CCAA). The group – which controlled some 20,000-plus trucks in the U.S. and Canada — cited rising customer delinquencies and a fast-changing market for its financial troubles. It racked up about $1.6 billion in debt before filing for creditor protection and is looking to restructure the business while returning assets to creditors and selling off its real estate holdings.

Credit: Source link


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