Surrey, B.C.-based American Trucklines in receivership

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Surrey, B.C.-based American Trucklines has been placed into receivership, after RBC, owed $3.3 million, accused it of defaulting on loan payments and reporting obligations. The lender also said it was […]

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[JACKBURTON]

The poor bank.

 

[YYZRIDER]

Yes, precisely the poor bank here.. This company is running on Amazon loads ON to BC lane. The owner has three yards, which I am definitely aware of. One in Caledon, right in front of the Beer Store WH and 2 in Brampton. Definitely worth more than $30 million altogether, and the poor bank is waiting for $3.5 million.
I am tired of hearing this every day, which is making it hard for companies to survive these challenging times.

For example, I was reading yesterday about JBT transport out of AYR. He bought Heritage and Drumbo in 2023, if I am not wrong, and within a span of 18 months, all companies related to JBT went bankrupt, resulting in a loss of about $17 million for the bank alone.

Sounds like all pre-planned.

 

[LrgCar]

The poor bank.

There’s nothing poor about them. These banks keep handing out massive lines of credit to trucking companies that clearly have no handle on their finances. They chase cheap freight until it finally hits them that they don’t have the cash flow to keep the credit line turning. We have to keep competing with these types of wingnuts, and the customers want us to match their rate.

If banks did even a basic financial competency check before approving these LOCs, we’d see a lot fewer of these situations. In today’s market, $3.3 million isn’t a big number, but honestly, how do the banks keep being this stupid?

 

[JACKBURTON]

There’s nothing poor about them. These banks keep handing out massive lines of credit to trucking companies that clearly have no handle on their finances. They chase cheap freight until it finally hits them that they don’t have the cash flow to keep the credit line turning. We have to keep competing with these types of wingnuts, and the customers want us to match their rate.

If banks did even a basic financial competency check before approving these LOCs, we’d see a lot fewer of these situations. In today’s market, $3.3 million isn’t a big number, but honestly, how do the banks keep being this stupid?

To be clear, I've never felt any sympathy for a bank. Especially ones that hand out ridiculous loans like candy at Halloween.

 

[ferrari]

Its ok, Carney will bail out the banks.

 

[loaders]

Its ok, Carney will bail out the banks.

In spite of the size and frequency of these defaults, don’t worry about the banks needing a bail out. They can recoup these amounts in short order by increasing fees, even in incredibly small amounts for the everyday, retail customer. Unlike our friends to the south, the banking industry in Canada is highly regulated, and always in the banks favour. Bank failures or bailouts are virtually unheard of here. The banks just raise their fees.

 

[Jim L]

The banks are a secured creditor and usually the first in line. They will receive all their outstanding funds, interest and legal fees. Like your example above, 30million in assets, all with a lien on it to cover the 3.5 million. The property will change hands and the first 3.5 million plus interest and legal fees goes to the bank and the rest goes in the pot for the other parties involved. The bank is happy, washes their hands, and nothing more is said. The receiver needs to figure out all the rest.

The bank never gives you money until you prove you don't need it.

 

[loaders]

Back in the “old days” when a 10% mortgage was enough to make you yell “start the car”, banks were more than willing to lend you a dollar….if you already had 2 of your own!