Big Rig Trailers & Leasing Inc. et al. (the “Big Rig Group”) — a group of retailers in the business of selling and servicing semi-trucks and trailers operated out of British Columbia, Alberta, Ontario, and California — were placed in receivership on July 5 on application by RBC, owed approximately $16.4 million. The receivership application followed an interim receivership order which was granted ex parte.

Prior to the insolvency proceedings, Grant Thornton was appointed as financial advisor over the Big Rig Group and attempted to locate missing inventory and proceeds from the sale of inventory secured by RBC. It was determined that, in addition to Big Rig Group committing monetary and non-monetary defaults under their loan agreements, management of the Big Rig Group has allegedly misappropriated inventory and funds from the business operating account.

Management was unable to identify the location of a significant portion of the inventory financed by RBC, or explain why there were duplicate VINs on multiple vehicle inventory located in different provinces.

In addition, while Grant Thornton was acting as interim receiver, the Big Rig Group failed to provide the interim receiver with access to business records or information regarding inventory (much of which remains unaccounted for), and the interim receiver’s access to premises where significant collateral is suspected to be located were impeded by the landlord.

Mitsubishi HC Capital Leasing, another secured creditor, is owed over $10 million.

Grant Thornton is the receiver.

Counsel is MLT Aikins for RBC, Dentons for the receiver, Whitelaw Twining for the Big Rig Group, and Miller Thomson for Mitsubishi.