Staged receivership for Manney Transport Group

A court-appointed receivership over a group of British Columbia transportation and related businesses is unfolding alongside a contested effort by management to retain control through a going-concern transaction, with shifting valuations and incomplete financial disclosure drawing scrutiny from secured lenders.

The Supreme Court of British Columbia appointed Alvarez & Marsal Canada Inc. as receiver on March 10, 2026 over the assets of 1030931 B.C. Ltd., with the order extending, on a staged basis, to affiliated entities including Manney Transport Ltd., NCG National Container Group Inc., and several liquor store operators. The receivership was initiated on application by National Bank of Canada, owed approximately $14 million, with Business Development Bank of Canada also holding senior secured positions. The Court deferred the receiver’s full powers over key operating entities, including Manney Transport and NCG, first to April 10, 2026, and others to May 10. The debtors have filed an application seeking to vary the receivership order to further postpone the receiver’s powers over those entities until June 10, 2026.

The debtor group spans a trucking platform and related businesses, including liquor retail operations and real estate holdings in Surrey, British Columbia. Manney Transport and NCG form the core operating entities in the transportation segment, supported by rolling stock, accounts receivable, and leased equipment, while affiliated entities hold real property and retail liquor assets that appear central to potential refinancing efforts.

Financial pressure is reflected in a combination of significant trade liabilities, payroll arrears, and inconsistent reporting of asset values. As at mid-March 2026, management reported accounts receivable of approximately $1.1 million and equipment valued at approximately $2.4 million, alongside trade payables of about $2.0 million and Canada Revenue Agency payroll source deductions of approximately $280,000 plus unpaid payroll of about $113,000.

Management has advanced a restructuring centred on a sale transaction designed to preserve operations. An initial proposal dated March 16, 2026 contemplated a reverse vesting transaction for the trucking entities, offering $700,000 in cash and the assumption or satisfaction of priority payroll liabilities. That proposal evolved into a March 26, 2026 letter of intent for a share acquisition at $1.35 million, later increased to $1.45 million, with allocations of $1.0 million to equipment and $450,000 to accounts receivable and the assumption of liabilities including payroll trust claims, lease obligations, and trade payables.

The proposed transaction is intended to maintain the trucking business as a going concern, preserve employment, and transfer operating licences and contracts, while relying in part on refinancing of affiliated liquor store assets to generate recoveries for secured creditors.

The receiver and secured lenders have raised a series of unresolved issues that remain central to the viability of any transaction. These include the absence of a detailed breakdown of the purchase price, incomplete reconciliation of accounts receivable movements, lack of CRA account statements supporting payroll trust liabilities, and uncertainty regarding proceeds from any refinancing of the liquor store assets. Questions have also been posed regarding allocation of value among asset classes given differing creditor priorities.

The proceedings are now focused on whether to allow further negotiation of the proposed transaction, or to permit the receiver to assume full control and pursue alternative realization strategies. The outcome will likely turn on whether management can substantiate asset values, firm up financing, and deliver a transaction that provides a clearer recovery path for secured creditors.

A&M is the receiver. Counsel includes Reedman Law for the debtors, Owen Bird for National Bank, Blakes for the receiver, Kornfeld for BDC, and Alliance Lawyers for Gagandeep Nahal et al.