Pride Group granted stay extension to Sept. 30
A court order dated June 27 has granted Pride Group an extension of its stay period – initially set to expire on June 30 – until Sept. 30.
This as the court has ordered the return of hundreds of trucks and trailers to creditors and as efforts to find a buyer for the company’s remaining assets continue. Pride also requested a further $6.3 million loan as part of its Debtor in Possession (DIP) financing so it can continue operations until Sept. 30.
An initial restructuring plan was delivered June 4 by the restructuring monitor and a revised version is currently being prepared “and will be delivered to the Administrative Agent shortly,” reads the latest Monitor’s Report, dated July 2.
Pride Group will seek the court’s approval of the terms of the DIP amendment July 3. There is no limit to how many stay extensions can be granted.
About 370 trucks have been identified and ordered returned to Daimler and its associated companies in the U.S. and Canada, according to the June 27 court order.
Dozens of other trucks and trailers were also ordered to be surrendered and sold by Regions Equipment Finance and Regions Commercial Equipment Financing, with proceeds to go toward creditors.
Meanwhile, Volvo Financial Services (VFS) has been returned 40 trucks – 17 in Canada and 23 in the U.S. — and has reached a consent order with Pride Group entity TPine, allowing for VFS to sell those vehicles, “the VFS Surrendered Collateral.”
Pride Group sought creditor protection on March 27, under the Companies Creditors Arrangements Act (CCAA). The group – which controlled some 20,000-plus trucks in the U.S. and Canada — cited rising customer delinquencies and a fast-changing market for its financial troubles. It racked up about $1.6 billion in debt before filing for creditor protection and is looking to restructure the business while returning assets to creditors and selling off its real estate holdings.
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I have a concern that the longer this process takes, how will it effect our industry? They knew that this would unravel one day with the thought that the two brothers would walk away untouched. There is fraud and they should held accountable for their actions. Close it down now, don’t allow them to have any more impact on the industry.
Something stinks in this whole Pride situation, as a previous reader wrote the longer they allow them(pride) to operate the worse it’s going to be on everyone else down the line.
Like other things in the trucking industry there seems to be two sets of rules, this is what we are once again seeing here.
If this was any other trucking company it would have been that’s it you cant pay you’re bills it’s close the doors bankruptcy outfits take over.
Giving them an extension only allows them to be more corrupt..Period!
There will be no compromise in lifestyle for any of the principals of the Pride Group. Personal guarantees just mean assets are in someone else’s name or protected offshore. As is usually the case in these sketchy (fraudulent?) situations all the other customers of the Pride Group creditors will carry the can for the greed and poor judgment of the lenders. Other than the “little people ” will anyone lose their job over this debacle? Doubtful. Just more back slapping and cigars on the golf course.
I m interested for any truck for sale, favorite will be cascadia freightliner with DD 15 engine with 13 speed standard transmission, model 2021-2023,price with good deal, thanks
Unfortunately this means they are going to haul anything and everything they can get their hands on just for cash flow. Profitability is no longer a concern. What that means to their competitors is they are going to go without freight because they won’t be able to compete.
Unfortunately the judge in this case only looked at what shutting Pride down would do the hundreds of employees, and not the thousands of competitors. By the time this is all said and done several legitimate trucking companies will have to close their doors.
@Glenn Wood is 10,000 percent correct ” The lesson here is if the fraud is big enough there is zero punishment “.
The lesson here is if the fraud is big enough there is zero punishment