Following TD Bank’s demand for payment of $16.2 million in unpaid debt, JBT Transport, situated in Kitchener, Ontario, and its connected businesses have filed for creditor protection.
Waydom Management, Melair Management, Heritage Truck Lines, Drumbo Transport, Heritage Northern Logistics, and Heritage Warehousing and Distribution are among the associated businesses.
Dodick Landau is the suggested monitor and has submitted a Notice of Intent on the companies’ behalf.
“Since the filing date, various transport carriers have refused to supply carriage services unless they receive payment of pre-filing arrears,” Dodick Landau writes in its Factum of the Applicant. Additionally, by illegally seizing the applicants’ property in order to collect money, transport operators have used hostage tactics.
Additionally, throughout the reorganization, the applicants want an order prohibiting these carriers from getting in touch with their customers directly or from interfering in any other way with their customer agreements.
Together, JBT has operated 58 trucks, 162 dry vans and refrigerated trailers, and more than 100,000 square feet of storage space since its founding in 2002. In addition to 21 independent contractors, it employs 83 truck drivers.
After expanding in 2022 by acquiring Drumbo, Heritage Truck Lines, Heritage Northern Logistics, and Heritage Warehousing and Distribution, it started to experience financial difficulties.
“The expansion presented an exciting opportunity for the business to cover a much wider range of services and become a full-service provider,” the factum states.
“The JBT Group had to pay hefty land development and construction costs for the two real estate properties that were included in the acquisition.”
When market conditions degenerated in September 2022, JBT had to contend with freight prices that had dropped 31.6% by March 2023. By August 2023, JBT alone reported a $4.9 million drop in freight volumes.
According to the rumor, TD changed the conditions of its loan arrangement, and during 2024, the businesses’ debt with the bank decreased from $25 million to $16.2 million. JBT claims that it was compelled to submit a NOI after TD demanded full payment in January.
Apart from TD, the JBT Group also owes roughly $25.6 million in unsecured debt.
Working under the NOI has been challenging.
According to the factum, activities have been negatively affected ever since the NOIs were filed. Several carriers have (1) held loads hostage while waiting for pre-filing amounts to be paid, (2) gone straight to customers to remove applicants as brokers and lower or reject their corresponding commission, and (3) held loads hostage while requesting direct payment from customers instead of going through the JBT Group after receiving notice of the NOI proceedings. In order to stabilize the situation with carriers and avoid further harm to their business during restructuring, the applicants are now seeking immediate relief.
Source: Trucknews.com
