Panjaab Transport placed into receivership

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Panjaab Transport, an Oakville, Ont.-based fleet running 117 trucks, has been placed in receivership. RBC says it’s owed more than $12 million and had “numerous and consistent concerns regarding the […]

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Talk about playing the game. Love how he gets a family member to open a business and put repair and storage liens on the equipment.
 
Unbelievable how intricate and well thought out this spider web of scams appears to be. If this guy had dedicated just one half of his calculating brain to running his business properly, he probably would be very successful. Criminals will always do what criminals do, it’s in their DNA. However what troubles me more than this criminal activity, is the seemingly cavalier and inattentive behaviour of the lending institutions involved. I mean after the whole Pride fiasco, have the banks and other creditors not learned anything? Perhaps it is the display of financial acumen that bamboozles the lenders into handing over millions in credit? An amazing story.
 
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loaders said:
Unbelievable how intricate and well thought out this spider web of scams appears to be. If this guy had dedicated just one half of his calculating brain to running his business properly, he probably would be very successful. Criminals will always do what criminals do, it’s in their DNA. However what troubles me more than this criminal activity, is the seemingly cavalier and inattentive behaviour of the lending institutions involved. I mean after the whole Pride fiasco, have the banks and other creditors not learned anything? Perhaps it is the display of financial acumen that bamboozles the lenders into handing over millions in credit? An amazing story.
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No, it's RBC managers who get a kickback for lending over millions to a company that, from the get-go, is intent on defrauding the system. The number of these companies that repeatedly run the same thing cannot be construed as accidental; furthermore, this behaviour is enabled by brokerages that would rather pay lower rates than do proper carrier vetting.
 
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All I can say is WOW. First it was Pride and now Panjaab. Who is next. I'm sure we will read about them soon. All I can say WOW and sad for owner operators/incorporated drivers) and employees.
 
artmax said:
No, it's RBC managers who get a kickback for lending over millions to a company that, from the get-go, is intent on defrauding the system. The number of these companies that repeatedly run the same thing cannot be construed as accidental; furthermore, this behaviour is enabled by brokerages that would rather pay lower rates than do proper carrier vetting.
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Sounds like most of the new immigrants based on my daily reading the Smith to Singh ratio of those charged seems to be a run away win for the Singh's. Drunk driving scams after scam theft drug dealing drug running you name it they are in it. How wonderful of these folks to try and turn Canada into the old homeland. To the good hardworking folks please stop working and helping these asses they are destroying the name your entire community all because they want it all and wanmt it yesterday. 10-1 Sunny has an exotic car to go with the big shack look at me minimansion.
 
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The Equifax report on Link is telling. Even though their score suggests they appear to be okay, the negative occurrence report signals the possibility of failure risk. All recent and quite a few.

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artmax said:
No, it's RBC managers who get a kickback for lending over millions to a company that, from the get-go, is intent on defrauding the system. The number of these companies that repeatedly run the same thing cannot be construed as accidental; furthermore, this behaviour is enabled by brokerages that would rather pay lower rates than do proper carrier vetting.
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Buddy worked BDC and assume its the same at all the banks.

Creative accounting to make the deal happen, worry about consequences later, which in a booming economy never pop up.

He was part of the group that worked on Pride for a bit at BDC. Was told find a way to make the deal work or we will find someone else who can.
 
It's always an insider job in banks that lend money like this to anyone. Remember ALWAYS.
In Brampton (chosen for this example), the bank representatives are indirectly requesting 1.5% of the loan amount after approval. So imagine the profit!
A 4-year-old company that receives a $20 million loan and then goes bankrupt just 15 months later? How is this possible?
 
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YYZRIDER said:
It's always an insider job in banks that lend money like this to anyone. Remember ALWAYS.
In Brampton (chosen for this example), the bank representatives are indirectly requesting 1.5% of the loan amount after approval. So imagine the profit!
A 4-year-old company that receives a $20 million loan and then goes bankrupt just 15 months later? How is this possible?
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I've read little about this particular situation, and don't want to stick up for someone, and it's likely that there was some manipulation here, but I don't think that bank representatives are independently getting rich or bank insiders are flowing the money out. There is way too many checks and balances to ensure that doesn't happen.

It is highly likely that they received a $20 Million loan which included a large chunk of a previously negotiated debt arrangement. 7.5 mil was for 2010 Ninth Line, Oakville (currently listed for just under 9mil) and 4.8mil was for the property at 2213 Ninth Line, Oakville. That is 12.3 tied up in real estate with a long amortization so while 20Mil sounds like a lot, if it is tied up in real estate, the bank should feel comfortable with the assets providing some relief. The rest is probably used for trucks and trailers listed on the PPSA.

Yes, RBC is cleaning house and likely they saw some eye-popping numbers on the financial statements just after the COVID freight price spike which allowed them to provide this debt in the first place. We all know that didn't last and the debtor can't meet the KPI's the bank requires them to keep. That just makes RBC pull the loan. Banks don't want to pull loans as there is a lot of money that gets wasted - they'd much rather get paid.

From what I remember in my brief reading is that they asked for a Monitor and the report came back with some alarm bells so RBC decided to pull the plug.

As always, it'll be the unsecured debtors that will be left shaking their heads and wondering how they got there.
 
@Jim L, there are too many adverse developments in this industry, which is both shocking and unbelievable. The above example of 20 million was of True North Freight. BMO lent them money, and they bought a yard just a year before going bankrupt.
 
The reality in our industry is that most are operational minded people who can drive a truck, get it from here to there, get it fixed, and then turned business owner. They bought a Load Link subscription, a decal for their truck and called on a Transportation Consultant to get a CVOR and an MC number. Boom they're a trucking company.
Unfortunately, they are not finance minded individuals who understand business. Balance sheets, cash flow and income statements mean nothing because somehow they have lots more money in the bank than the bottom line says it has - accountants must be idiots and what is amortization anyway?!. They buy a property, which goes up in value thinking they are the king of the hill but do not realize that their trucks and trailers have gotten older and require tons more maintenance.
Now the bank, who often redefine the term finance, says that your 'Quick ratio led us to look at your Fixed Charge Coverage which exceeds our prescribed limits noted on page XXXX of the agreement you signed' and the trucker turned company owner goes 'huh?'. Next call goes to his accountant, who he previously called an idiot, who advises him that it was a note on the previous year financial package (which he didn't read). The guy now scratches his head wondering what does this all mean? He has a property worth millions, how can that be a problem?

The problem is not what you own but the method on how you're going to pay back what you owe and keep it going over the life of the loan. If your sales drops, if your expenses rise, assets decrease, ratios go off side. The reality is that the bank sees the problem way before the trucker turned trucking company owner does. They have actuaries and economists who have identified the industries that need to be scoped. The bank probably wiggled the KPI's tighter at the last renewal just because the economists put trucking at the top of the sh*t list. The KPI's are in there to watch and catch improprieties in the books. In the case of Panjaab Transport, RBC saw a significant decrease in the deposits going into the bank account which was all it needed to sound the alarm and get someone on it.
 
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