October 5, 2020
Kings Cargo Express Ltd. ("Kings Cargo") and Canada Cargo Lines Ltd., Winnipeg, Manitoba-based companies that provide long haul trucking delivery services across the US and Canada, were placed in receivership on October 5 on application by TD, owed approximately $2.2 million. The companies were frequently late on their requisite monthly reporting to TD and Kings Cargo regularly overdrew on its operating loan without providing adequate payments into the account to reduce the line. Due to this lack of transparency in reporting, TD argued that it had no visibility, knowledge, or control over the companies' accounts receivable, which are worth approximately $2.0 million (CAD) and $1.0 million (USD), and that the appointment of a receiver was required to prevent a further devaluation of TD's collateral. Deloitte was appointed receiver. Counsel is Dentons for the applicant, Taylor McCaffrey for the receiver and Hill Sokalski Walsh for the company.