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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

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