Sulakhan (Sam) and Jasvir (Jas) Johal, the brothers who founded Pride Group, grew it into a trucking empire that sought creditor protection last year, and then repurchased its core assets to continue running Pride Group Logistics, have been declared personally bankrupt.
The brothers repurchased Pride Group Logistics for $56 million, funded in part by Vancouver-based Maynbridge Capital.
However, a motion by creditor Mitsubishi Capital lifted the CCAA stay of proceedings that protected the brothers on March 7, opening the door for the Bank of Nova Scotia (BNS) to move forward with its own bankruptcy applications, a source told TruckNews.com.
“These Matters were before me on April 1, 2025, on which date the Bank of Nova Scotia sought an order lifting the stay and proceeding with the bankruptcy application in each of these two proceedings,” ruled Justice Peter Osborne, referring to Sulakhan and Jasvir Johal.
The original claim by Mitsubishi Capital may have motivated the Johals to put Pride into CCAA proceedings, a source told TruckNews.com, “which resulted in a stay of their guarantees on Pride debt.”
Mitsubishi claimed the Johals guaranteed approximately $33 million toward Pride debt.
It’s not yet clear how the personal bankruptcies will affect ownership and the ongoing running of Pride Group Logistics.
The Johals consented to the bankruptcy order filed by the Bank of Nova Scotia. “Mitsubishi takes no position today. The Pride Entities take no position and the Monitor in the Pride Entities CCAA proceeding will continue to coordinate proceedings, but does not oppose the orders being sought today,” Osborne ruled.
Credit: Source link
