A group of trucking companies tied to the Cheema name has entered receivership under separate court proceedings, as an Ontario judge rejected a last-ditch effort to refinance one of the operations and revive the business.
Court records show at least two Cheema-linked companies are now under receiver control following defaults to major lenders.
In the most recent decision, the Ontario Superior Court of Justice dismissed a motion by 1512632 Ontario Inc., operating as Cheema Carriers, and 2856586 Ontario Inc., to refinance their operations and remove court-appointed receiver Grant Thornton.
The companies had defaulted on more than $2.6 million owed to Royal Bank of Canada, triggering the receivership last June.
The court rejected the proposed refinancing plan, finding it relied on incomplete financial information and would still leave more than $1 million owed to unsecured creditors.
Allowing the plan would “unfairly shift the risk back to the creditors,” the court ruled.
The judge also questioned how the business could resume operations, noting the fleet had already been liquidated and no replacement equipment or leasing arrangements were in place.
Separate receivership tied to Cheema Carriers
In a separate proceeding, the Ontario Superior Court placed Cheema Carriers Corp. and another affiliated company into receivership in February 2026 following an application by Bank of Montreal.
That order appointed Goldhar & Associates as receiver over all assets, including an Oakville, Ont., property, and granted authority to take control of trucks, equipment and business operations, and to market them for sale.
Refinancing effort falls short
In the Brampton case, company owner Pawandeep Cheema argued he had secured about $4.1 million in refinancing, including a $100,000 deposit already wired, and said the deal would allow him to repay creditors and revive the business.
“I have successfully run this company for 25 years … at the peak of my business I was operating 100 trucks,” he said in an affidavit.
Cheema also argued the receivership process eroded value, claiming trucks were sold below market prices and that asset seizures caused “irreparable harm.”
The court rejected those arguments, siding with the receiver’s assessment that the plan was incomplete and would prejudice creditors.
Real estate now central
Attention has now turned to selling two Cheema-owned industrial properties on Goreway Dr. in Brampton, appraised at about $6.02 million.
The receiver has reduced the asking price to $5.175 million and is reviewing multiple offers as it seeks to recover funds for creditors.
The court has allowed the sale process to proceed, rejecting Cheema’s objections that the properties were being marketed below value.
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