2 Canadian trucking companies forced into receivership

[tasuinam]

2 Canadian trucking companies forced into receivership

A court-appointed receiver has assumed control over Canadian cross-border trucking companies Kings Cargo Express and Canada Cargo Lines in Manitoba, which owe CA$2.2 million to Toronto-Dominion Bank.

www.freightwaves.com

How ... how do companies get so much credit -

Deloitte Restructuring assumed control over Kings Cargo Express and Canada Cargo Lines, based at the same address in Winnipeg, Manitoba, on Oct. 5 following a decision by a judge of the Court of Queen’s Bench. They collectively owe CA$2.2 million (US$1.7 million) to Toronto-Dominion Bank (TD), according to a report filed by Deloitte on Friday.

It was not clear from the court filings what led to the receivership. The CEO of Kings Cargo Express, a guarantor for both carriers, and a lawyer for TD did not respond to FreightWaves’ requests for comment

 

[Jim L]

Looks like the TD Bank completed this in time and should come out of this in an ok position. At this time there are more assets than secured debt which is uncommon for these things. Obviously they defaulted on some aspect of the loan with TD and they thought it was prudent to call their loans sooner than later.

Based on their unsecured creditor list it looks like they were not doing too much business as there are very few carriers on the list and no fuel companies.