SHR Carrier and its related Ontario trucking companies have been placed into receivership, with MSI Spergel appointed as the receiver on May 23. The court-ordered action comes after RBC claimed it’s owed approximately $7 million by the troubled companies.
The receivership extends to multiple related businesses including Rite Choice Truck Sales, North Load Haulers, Fleet Fix Truck Centre, and a numbered company (2848644 ONTARIO Inc.) that owns commercial property in Mississauga.
According to court documents, RBC initiated proceedings after the companies failed to meet conditions outlined in a forbearance agreement reached earlier this year. “RBC has lost faith in the debtors’ management, and considers the only reasonable and prudent path forward is to take any and all steps necessary to protect the property by having a receiver appointed,” the documents state.
The bank reportedly grew frustrated with what it described as “the lack of receipt from the debtors of timely, complete and evidence-supported answers to the information requests.” This communication breakdown appears to have accelerated the legal action.
Court filings reveal that SHR previously operated under the name North King Trucking, while North Load Haulers was formerly known as Freight Linx Inc. and HBH Trucking Inc.
The situation worsened when SHR was flagged by U.S. authorities. The company was declared “out of service” on the Federal Motor Carrier Safety Administration’s website and “prohibited from operating commercial motor vehicles in interstate commerce,” a significant blow to its business operations.
The forbearance period was terminated when the companies allegedly failed to meet specific milestones established in their agreement with RBC, pushing the bank to seek the receivership as its final recourse.