Sale of Pride Group Logistics approved

Pride Group Logistics announced that the Ontario Superior Court of Justice has approved the sale of the company to a purchaser that is controlled by members of the Johal family.

The purchaser will acquire substantially all of the assets of Pride Group Logistics necessary to continue operating the business, to continue to serve Pride Group Logistics customers and maintain the jobs of its over 500 employees and contractors.

After filing for bankruptcy in March, Canadian trucking and leasing company Pride Group indicated that as of Aug. 15, it has sufficient liquidity to continue to operate and that for the time being, it was business as usual.

“As it stands currently, the monitor is recommending the continuing pursuit of a going-concern sale transaction supported by the Johal family,” Pride Group said in an August statement. “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.”

On May 15, the Companies’ Creditors Arrangement Act (CCAA) Court granted an order authorizing Pride Group Logistics to conduct, under the oversight of Ernst & Young Inc., in its capacity as court-appointed monitor, a sale and investment solicitation process (SISP) for Pride Group Logistics business and assets. Pursuant to the SISP, the purchaser’s proposal was identified as the successful bid.

Pursuant to the purchase agreement, the purchaser will:

• acquire substantially all of the assets of Pride Group Logistics’ business, including but not limited to the fleet of Pride Group Logistics vehicles, related equipment and inventory, all intangible assets, accounts receivable, cash, cash equivalents and prepaid expenses;
• assume Pride Group Logistics licenses and operating permits, subject to regulatory approval;
• acquire all intellectual property and goodwill of Pride Group Logistics, including ownership of all related names and trademarks;
• assume contracts of Pride Group Logistics and its affiliates critical to the business;
• acquire ownership of Pride Global Insurance Company Ltd.; and
• retain an option to acquire certain leasehold real property ancillary to the business or leases in respect thereof, subject to certain conditions.

The closing of the transaction is subject to issuance of the approval and vesting order and, if needed, an order assigning the critical required contracts to the purchaser, as well as customary closing conditions and an order of the U.S. Bankruptcy Court recognizing the approval of the transaction. The transaction is expected to close on or about Oct. 16, 2024.