Business as usual for Pride Group amid restructuring

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 is business as usual.

Providing an update on its situation – and saying some media coverage has not been accurate – the company said with regards to Pride Group Logistics (PGL), the court has not made any determination at this time. Pride Group continues to seek a going-concern sale of the PGL business, which is in the best interest of PGL’s employees, contractors and business partners.

As of Aug. 15, PGL will not be wound down, and a bid for the company has been submitted by a proposed purchaser that is controlled by members of the Johal family.

“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 a 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.”

Randall Benson, chief restructuring officer of the Pride Group, is recommending the Johal family bid as the preferred option.

The court will hear and make a decision at a future date with respect to any proposed sale of PGL’s business. Until the court makes its decision, it is business as usual for PGL’s employees, contractors and business partners.

As it concerns the Pride Group’s and Tpine’s leasing business lines, it is business as usual for Tpine’s employees, contractors, lessees and business partners — lease amounts are being collected and are expected to be paid in accordance with the court orders granted in these proceedings.

As it concerns Tpine Financial’s factoring business, the court recently approved the sale of Tpine’s factoring business as a going-concern sale. More information will be forthcoming on the mechanics of the purchase and transfer of the factoring business, however, customers of the factoring business are expected to continue to be customers of the business after it is sold.

Finally, as it concerns truck inventory and sales, the Pride Group has determined that a going-concern transaction is no longer feasible due to the overall state of the trucking and logistics market.

The Pride Group (excluding Pride Group Logistics) is considering its options, including an orderly disposition of its trucks and trailer assets and, where appropriate, turning over assets to financiers on agreed-upon terms and winding down business lines in an orderly fashion, which minimizes impact on affected stakeholders. Should a restructuring option develop involving a standalone truck dealership business, it will be presented to the creditors and the court for consideration.