BMO secures receivership over GTA trucking group after failed sale process

Cheema Carriers Corp. and 1000083465 Ontario Inc., Ontario based trucking, transport and logistics companies, were placed into receivership on February 18, 2026 on application by Bank of Montreal, following prolonged defaults and a failed sale process tied to a secured real estate asset.

The appointment followed a contested proceeding that began in May 2025 and was repeatedly adjourned to allow the debtors to pursue a refinancing or sale of 860 Progress Court, their Oakville property. The parties ultimately agreed that if the bank was not repaid at least $10 million from a proposed transaction by February 16, 2026, the borrowers would consent to the appointment of a receiver. That deadline passed without repayment, and the transaction was terminated.

Cheema Carriers and its affiliate operate a trucking, transport, and logistics business based in the Greater Toronto Area, focused on temperature-controlled freight and cross-border routes extending across the United States, including Texas and both coasts. The business relies heavily on mobile assets, including trucks and transportation equipment operating across multiple jurisdictions, which the court found heightened the need for a centralized enforcement process to preserve value.

BMO’s exposure arises from four credit facilities advanced across the borrower group, including operating lines and a mortgage-backed facility tied to the Oakville real property. As of April 17, 2025, total indebtedness exceeded $10.5 million, secured by a first-ranking interest in substantially all personal property and a mortgage over 860 Progress Court.

Financial distress emerged through covenant breaches and reporting delays. The borrowers failed to deliver timely financial statements for 2023, triggering a default that led the bank to demand repayment by January 31, 2025, later extended twice to March 31, 2025. No repayment was made. Formal enforcement steps followed in April 2025, including notices of intention to enforce security.

Despite ongoing engagement, the borrowers were unable to refinance or otherwise satisfy the debt. The court noted that BMO had not acted precipitously, allowing more than a year of extensions and multiple opportunities to complete a restructuring or sale.

Goldhar & Associates is the receiver. Counsel includes Torys for BMO, RSG Law for the companies, and Reconstruct for the receiver.