A group of British Columbia–based trucking and delivery companies has been pushed into receivership after the Supreme Court of British Columbia refused to extend creditor protection, concluding the companies had failed to demonstrate a viable path to restructuring.
In a decision released Dec. 17, the court denied a request by V.K. Delivery & Moving Services Ltd. and related companies — together known as the VK Group — to extend their stay of proceedings under the Companies’ Creditors Arrangement Act. Instead, the court granted an application by senior secured lender Royal Bank of Canada to appoint a receiver.
Justice Shelley Fitzpatrick found the companies had spent months under CCAA protection without producing a credible plan of arrangement, while continuing to generate operating losses and erode the value of secured collateral.
“The evidence does not support a conclusion that further time under CCAA protection would advance the remedial purposes of the statute,” the court ruled.
The VK Group, which operates in trucking, logistics and delivery services, initially sought CCAA protection in May, arguing it needed time to secure refinancing and stabilize operations. While management pointed to ongoing discussions with a potential financier, the court found key conditions remained unresolved, and no firm funding commitment was in place.
RBC argued that further delays would harm the bank, which held security over the companies’ assets and would not be repaid in full under the proposed restructuring.
The court agreed, noting RBC effectively held veto power over any plan and should not be forced to absorb further losses while enforcement rights were stayed.
MNP Ltd. was appointed receiver and manager, assuming control of the companies’ assets and operations.
According to the company’s marketing materials, VK Delivery’s fleet included approximately 75 tractors, more than 100 trailers and 40 local delivery trucks.
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