Pride Group - TPine

teddy said:
When you have a key lender personally suing the brothers i hardly think they are going to want to keep working things out in the CCAA process.
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If the CCAA proceeds past the initial stay order they will not have a choice but to work things out. Nobody wants to work within the constraints of the CCAA or assignment of bankruptcy. Everyone wants their money now - not later.

It is one of the main reasons why the PRIDE GROUP applied for CCAA protection in the first place. Once it got out that primary lenders are suing the flood gates would open causing all lenders and parties owed by the company to follow suit. Services would be halted, fuel cards turned off, assets seized. Pride would not be able to react fast enough to protect any of the huge costs that come with managing these issues and any value left in anything will be evaporated. It would be the wild, wild west with sheriffs scrambling with each other trying to secure assets.

I cannot find any instances where an applicant who applies and receives an initial stay order was not granted a continuance in CCAA. Ernst & Young (EYI) is probably the biggest player in this area and I'm sure that it was a big part of the decision making for a while now to have them involved so they can convince the court to use them. As much as I would feel that it would be best for our industry to disallow the CCAA and force them into liquidity, I don't think it will happen. Just the fact that EYI took this on means that they are confident that the courts will allow them to proceed and EYI will be able to charge and collect their fees guaranteed to be paid out of what is available. Remember, the monitor, EYI, is acting on behalf of the lenders as a whole, not PRIDE, to maintain and secure any value left in the company to pay out everyone involved.

IMO the CCAA is inevitable and will most likely tie up things for years.
 
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Jim L said:
IMO the CCAA is inevitable and will most likely tie up things for years
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my thoughts exactly, liquidation is sort of the last resort for these types of situations. MHC and other lenders involved know the asset values if they liquidate today would not get them anywhere near the money lost. They pretty much have Pride group handcuffed now, and will probably siphon off any profits generated to pay creditors first. They'll mostly likely have to cut costs anywhere and everywhere, so keep a look out for yards up for lease/sale, some equipment might hit the auctions, workforce most likely will get "right sized", will see some higher up heads roll and on linked in updating their profiles.
 
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Rob said:
@teddy it is Tepper not Tepperman they are a furniture store lol,,, JS screwed a a lot of folks with the BRS poop too some he did not even know he screwed, Just before going tits up at BRS he had Ultramar fills his tanks at all his yards and Monday morning filed the ppwk so Ultramar got worried with trucking companies and took all us us 30 day payers down to 7.
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JS since at least 1988 had a place in the Cayman’s, and he would spend a few weeks there periodically throughout the year.I don’t think he was sitting on a beach ️ when he was there.BRS peaked out at 100 million in revenues before it all come crashing down….skim 10-15 percent off the top over a 20 year period,would give a person a nice nest egg….just saying
 
Jim L said:
If the CCAA proceeds past the initial stay order they will not have a choice but to work things out. Nobody wants to work within the constraints of the CCAA or assignment of bankruptcy. Everyone wants their money now - not later.

It is one of the main reasons why the PRIDE GROUP applied for CCAA protection in the first place. Once it got out that primary lenders are suing the flood gates would open causing all lenders and parties owed by the company to follow suit. Services would be halted, fuel cards turned off, assets seized. Pride would not be able to react fast enough to protect any of the huge costs that come with managing these issues and any value left in anything will be evaporated. It would be the wild, wild west with sheriffs scrambling with each other trying to secure assets.

I cannot find any instances where an applicant who applies and receives an initial stay order was not granted a continuance in CCAA. Ernst & Young (EYI) is probably the biggest player in this area and I'm sure that it was a big part of the decision making for a while now to have them involved so they can convince the court to use them. As much as I would feel that it would be best for our industry to disallow the CCAA and force them into liquidity, I don't think it will happen. Just the fact that EYI took this on means that they are confident that the courts will allow them to proceed and EYI will be able to charge and collect their fees guaranteed to be paid out of what is available. Remember, the monitor, EYI, is acting on behalf of the lenders as a whole, not PRIDE, to maintain and secure any value left in the company to pay out everyone involved.

IMO the CCAA is inevitable and will most likely tie up things for years.
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Oh the Pride Group won’t be denied CCAA from the courts in my opinion they brothers and EY will go through the whole (we are victims because of the economic downturn turn)as for EY they will take this case on because they will make lots of money from it.What will become of the Pride Group after CCAA and chapter 15 is probably a very smaller organization.
 
MLCAR said:
my thoughts exactly, liquidation is sort of the last resort for these types of situations. MHC and other lenders involved know the asset values if they liquidate today would not get them anywhere near the money lost. They pretty much have Pride group handcuffed now, and will probably siphon off any profits generated to pay creditors first. They'll mostly likely have to cut costs anywhere and everywhere, so keep a look out for yards up for lease/sale, some equipment might hit the auctions, workforce most likely will get "right sized", will see some higher up heads roll and on linked in updating their profiles.
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Chapter 15 filling in the US is a game changer and i can’t see it’s US operations being restructured but getting liquidated.
 
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Igor Galanter said:
And published on April 1..No kidding, eh..
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tasuinam said:
so my mecahinc was told by a truck leasor from T Pine that they bought property in Dubai and a jet...
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Yeah iam not surprised….i wouldn’t be surprised if the Pride brothers pack up and leave the country….well they would be able to do it in style since they have a jet
 
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TO2022 said:
"In 2022, the company made $183-million in profit, and in 2021 it made $123-million." Cleared $300M in profit in 2 years....yeah I'd buy a jet and a house in Dubai too!
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Those numbers cant be the trucking profits or the USED dealer profits. Something else was there cooking !! Ponzi Scheme is a correct word.
 
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YYZRIDER said:
Those numbers cant be the trucking profits or the USED dealer profits. Something else was there cooking !! Ponzi Scheme is a correct word.
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2 billion coming in at 9 percent is doable.But yeah when you look at just the real estate debt at around 350 million i don’t see any equity there in these properties.The tax bills are all outstanding,the Fort Erie in particular seems odd at 134,000$ that would seem like it wasn’t paid for 2 years,that would appear that Pride had no intention of paying it.I know through a friend that knows someone who is a mechanic with a shop that did work for Pride and wasn’t paid since last October,big surprise he is now on the unsecured creditors list.
 
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