Trans Globe Logistics, Polestar Holdings and Compass Rose International Transportation were placed into receivership Jan. 15, with KPMG appointed as receiver.
The companies owe RBC about $34.1 million, an amount its owners say can be paid in full following sale of its property at 12423 Coleraine Drive, in Caledon, Ont.
Management said two large, well known construction firms have expressed interest in purchasing the property. They also said they’d received an offer to purchase the property for $28 million but demanded a stronger offer.
It owes another $794,000 to unsecured creditors.
The debtors, as of Jan. 15, had only $28,577 in cash, court documents reveal. However, they also had $2.4 million in accounts receivable as of Dec. 31, 2024. In an affidavit, the accounting firm representing the company contended they can continue as a profitable business if RBC waits for the sale of the Coleraine Dr., property.
RBC contended that the company isn’t a viable going concern without the property, which serves as the terminal for Trans Globe.
The companies operate roughly 74 trucks and 45 trailers. Trans Globe provides general freight and temperature-controlled trucking services in Canada and into the U.S. Polestar is the real estate holding property, while Compass Rose offers freight services focused on the automotive industry.
Trans Globe said a former accounting firm was largely to blame for its cash flow challenges, as it was slow in filing an HST rebate worth $560,000. They now contend to be cash-flow positive.
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