JBT Transport Inc. et al., Ontario-based end-to-end transportation companies serving customers across North America, were placed into receivership on March 4 on application by TD Bank, owed over $16 million.

Suffering from declining market conditions and a significant downward trend in their cross-border transportation operations, the companies initially filed an NOI on January 24 and a “skinny” CCAA initial order was made on February 10. The companies had hoped to pursue a SISP in an attempt to safeguard employment for 83 full-time employees and preserve value for stakeholders. However, the Court ultimately granted TD Bank’s receivership application, finding that the proposed CCAA process was not likely to result in a going concern sale or refinancing given the companies’ extensive pre-filing efforts. The Court also noted the risk of further deterioration to TD Bank’s security, TD Bank’s loss of confidence in management, and the practicality of a receivership versus a debtor-led restructuring.

BDO was appointed receiver.

Counsel is Miller Thomson for TD Bank and Reconstruct for the JBT Group.