Grace Road Lines Ltd. and Goodwill Enterprises Ltd., Receivership

Grace Road Lines Ltd. (“GRL”) and Goodwill Enterprises Ltd. (“GEL”) were placed into receivership on January 22 on application by RBC, owed approximately $12 million.

GRL is an Alberta-based long haul trucking company, providing services to a variety of customers across Canada and the US, while GEL operates as a real estate holdings company.

After the companies breached certain financial covenants, RBC appointed Grant Thornton to act as business monitor of the companies. However, the companies failed to cooperate with Grant Thornton throughout its engagement. The parties attempted to negotiate a forbearance agreement but were unable to agree on the terms.

Doane Grant Thornton was appointed receiver.

Counsel is Gowling WLG for RBC, BLG for the receiver and Goodfellow & Schuett for the companies.