Quebec-based carrier Transport Sylvester & Forget has filed a proposal under the Bankruptcy and Insolvency Act, seeking to restructure its debts while continuing operations.
The proposal was filed June 12 and is being administered by Groupe Serpone Inc., a licensed insolvency trustee. According to court documents, the company reported total assets of approximately $6.3 million and debt of more than $5 million.
Among the assets listed are 29 Peterbilt trucks, 222 trailers, a property in St.-Stanislas-de-Kostka, Que., and approximately $2.5 million in accounts receivable.
The fleet assets are valued at roughly $2.9 million, including 164 trailers valued at $2.6 million and 19 Peterbilt trucks valued at $307,500.
The filing indicates the company also owns a property at 320 Route 201 in St.-Stanislas-de-Kostka valued at $800,000.
The trustee’s report states there is no indication of preferential payments, improper asset dispositions, or other reviewable transactions leading up to the filing. It also notes no apparent violations of the Bankruptcy and Insolvency Act were identified.
According to the trustee, unsecured creditors would not be expected to receive any recovery in the event of a bankruptcy, making the proposal a more favorable outcome than liquidation.
The filing lists hundreds of creditors, including trucking companies, equipment suppliers, tire providers, fuel suppliers and other transportation-related businesses across Canada.
Under the proposal, secured creditors would continue to be dealt with according to existing agreements or arrangements negotiated between the parties.
Transport Sylvester & Forget is based in southwestern Quebec and operates a fleet serving customers across Canada and the United States.
A creditors’ meeting is expected as part of the proposal process, during which creditors will vote on whether to accept the restructuring plan. If approved and successfully completed, the company would avoid bankruptcy and continue operating under the terms of the proposal.
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