coldshipper
Member
5
Have it on pretty good info that Bruce R Smith just filed for CCAA.... just waiting for the official press release
Bruce R Smith
- Thread starter coldshipper
- Start date
Freight Broker
Well-Known Member
30
Hopefully just a bad rumour..that company has been around for awhile and if they're having trouble you can be sure that alot of others are right behind. Wish em luck..
MontrealTrucker
Site Supporter
10
lowmiler88
Site Supporter
30
It is Bruce R. Smith's intent to emerge from CCAA protection with stronger, more efficient trucking operations.
After screwing everyone who dealt in good faith with them what a great country we live in. These rumours have been going around for a while, it goes to show you were there is smoke there is fire.
After screwing everyone who dealt in good faith with them what a great country we live in. These rumours have been going around for a while, it goes to show you were there is smoke there is fire.
coldshipper
Member
5
Looks like they may not be able to pull the re-organization off. Seems some of their major customers are not willing to continue to operate with an un-stable carrier. The RBC has drawn a line in the sand and without a revenue stream which can produce a positive cashflow, the only other way to save things is to cut costs quickly.
Low rates and excess equipment strategies have probably sealed their fate.
Low rates and excess equipment strategies have probably sealed their fate.
According to what i have heard they have been granted protection already to be restructured and downsized but will still be in business.
BR Smith
little birdies are saying they have come to an agreement with all the creditors and they will repay in 2yrs....and still in business
little birdies are saying they have come to an agreement with all the creditors and they will repay in 2yrs....and still in business
lowmiler88
Site Supporter
30
That is probably all the secured creditors and to bad for everyone else.........and yet they can drive merely down the road.
I believe it's the leasing companies who are taking the big part of this. I know we are still using them regularly ... the only thing I've noticed, haven't seen them with a flatbed for a while.
Hey, they had to do what they had to do ... at least much of the people still have their jobs.
Hey, they had to do what they had to do ... at least much of the people still have their jobs.
Rob
Site Supporter
30
I seen a BR truck yesterday pulling a six axle flat so he must still have a few. And yes the leasing companies are getting it up the hoop large on this one. The source I have is saying Citi Financial is pulling the strings as they are the biggest creidtor so pay us and screw the rest or your done!
Let them go
I would like to operate without having to concern myself with my payables. Unfortunatly ,it seems as though I am not big enough to do so.
We have alll seen sevaral failures amongst the larger carriers, several companies going into various forms of protection, whereby they can discount or simply eliminate older debt.
Unfortunatly a great deal of this debt is often on the shoulders of smaller carriers and suppliers, they are seldom in the position of being a prefered creditor.
The creditors that are left on the wayside, then must recoup their monies elsewhere.
Suppliers, by raising the rates to the rest of their customer base and Carriers / brokers by delaying payment to other carriers.
It is a falacy to think anyone is better off by keeping these carriers afloat.
With the scarcity of freight in any direction, all of the capacity left by the demise of Bruce R Smith will be easily and quickly gobled up by other carriers, who may I add are paying their suppliers.
If it took a driver to pull load a for the defunct it will simply take another driver for company B to pull the same load.
I would like to operate without having to concern myself with my payables. Unfortunatly ,it seems as though I am not big enough to do so.
We have alll seen sevaral failures amongst the larger carriers, several companies going into various forms of protection, whereby they can discount or simply eliminate older debt.
Unfortunatly a great deal of this debt is often on the shoulders of smaller carriers and suppliers, they are seldom in the position of being a prefered creditor.
The creditors that are left on the wayside, then must recoup their monies elsewhere.
Suppliers, by raising the rates to the rest of their customer base and Carriers / brokers by delaying payment to other carriers.
It is a falacy to think anyone is better off by keeping these carriers afloat.
With the scarcity of freight in any direction, all of the capacity left by the demise of Bruce R Smith will be easily and quickly gobled up by other carriers, who may I add are paying their suppliers.
If it took a driver to pull load a for the defunct it will simply take another driver for company B to pull the same load.
lowmiler88
Site Supporter
30
Well put ALX I say let them go and the principles cannot own another business for 7 years unless they want to pay off the people they screwed out of their money......it sure would get rid of these guys pretty quick.....correct me if I'm wrong but BR did this before aren't the BR Smith 1984 or something like that?
I agree alx, It seems that there is this overwhelming acceptance to forgive debt from large defunct carriers because they employ many people. These are the same carriers that champion initiatives in the industry such as EOBR, Speed Limiters etc... They say they need to level the playing field. This is a joke! If these same carriers would price their services in a responsible manner then I believe we would be closer to levelling the playing field. This does not mean I am not in favour of EOBR and or Speed Limiters I am just using these as examples. Yes Sh@#$ happens and at times companies are forced out of business, but what I find amazing is the mountain of debt they leave on the street. How it could possibly get that bad is hard to fathom.
Loadlooker
Member
5
I believe it was 4 yrs ago only.
Level playing field
Truck It . You hit the nail on the head.
Looking back on two recent, larger carrier's bankrupcies, say Brymag and LE Walker. The following facts are disturbing:
How did Brymag Manage to have payables that were equal to over 4 times receivables? I can hardly get 75%.
In L.E Walkers case , if I remeber well, the amounts owed to SECURED creditors were EXACTLY the same as the listed assets, quite the coincidence.
Truck It . You hit the nail on the head.
Looking back on two recent, larger carrier's bankrupcies, say Brymag and LE Walker. The following facts are disturbing:
How did Brymag Manage to have payables that were equal to over 4 times receivables? I can hardly get 75%.
In L.E Walkers case , if I remeber well, the amounts owed to SECURED creditors were EXACTLY the same as the listed assets, quite the coincidence.