RBC Secures Receiver Appointment for Trucking Logistics Business
On April 14, 2025, the Ontario Superior Court of Justice
(Commercial List) (the “Court”) appointed msi Spergel Inc. as receiver
over the assets, undertakings and properties of Tung Air Transport Ltd.,
2527366 Ontario Inc., R. Lessard Trucking Limited and 1000101395 Ontario Inc.
(the “Respondents”), pursuant to s.243 of the Bankruptcy and
Insolvency Act and s. 101 of the Courts of Justice Act.
The Respondents operated a logistics and trucking services
business and collectively owed the Royal Bank of Canada (“RBC”) approximately
$18 million in principal and interest (plus costs and accruing interest) on a
secured basis. The appointment was opposed on the basis that the bank was
oversecured and that the debtors were seeking alternate financing, but the
Court accepted RBC’s submissions that the receivership was just and convenient
given the Respondents’ cash flow difficulties, payment defaults and inability
to provide evidence of a viable path forward.
Aird & Berlis acted as counsel to RBC with a team consisting of Steven Graff, Shaun Parsons and Alex Bernicchia-Freeman (Financial Services).
