Home Truck News Pride Group owner seeks stay of proceedings until June 30 - Truck...

Pride Group owner seeks stay of proceedings until June 30 – Truck News

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.


Credit: Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

17 killed, 41 injured in truck crash – Daily Times

17 killed, 41 injured in truck crash  Daily Times Credit: Source link

Texas truck driver, 42, who crashed a stolen 18-wheeler into a DPS building in Brenham after being rejected fo – Daily Mail

Texas truck driver, 42, who crashed a stolen 18-wheeler into a DPS building in Brenham after being rejected fo  Daily Mail Credit: Source link

ECONOMIC TRUCKING TRENDS: Fuel prices eat into trucking conditions – trucknews.com

ECONOMIC TRUCKING TRENDS: Fuel prices eat into trucking conditions  trucknews.com Credit: Source link

FGI to open first Nova Scotia location next week  – Truck News

Fort Garry Industries (FGI) will open its first branch and product distribution...

ECONOMIC TRUCKING TRENDS: Fuel prices eat into trucking conditions – Truck News

It was a fairly light week for economic news, but FTR’s Trucking...