Walgre Transport moves from NOI to CCAA amid cross-border restructuring effort

By Order of the Ontario Superior Court of Justice (Commercial List), Walgre Transport Inc. and 2793309 Ontario Ltd. have continued their proposal proceedings under the Bankruptcy and Insolvency Act (BIA) under the Companies’ Creditors Arrangement Act (CCAA). The Mississauga-based carriers operate a cross-border and domestic freight business through affiliated entities in Ontario and Indiana. The companies first filed Notices of Intention to Make a Proposal on June 27 2025 after experiencing acute liquidity pressure stemming from high operating costs, industry-wide challenges in the North American trucking and logistics sector, and imminent enforcement by secured creditors. Defaults had occurred under senior facilities with the Bank of Nova Scotia and Roynat Inc., as well as under multiple equipment leases and financing arrangements, many of which were personally guaranteed by sole director Kanwaldeep Singh Grewal.

During the NOI process, Walgre surrendered non-essential equipment, maintained critical leases, implemented cost reductions, and secured a $2 million debtor-in-possession (DIP) facility from Blue Dot Americas Limited. With operational stabilization achieved, the applicants sought the additional flexibility and protection afforded by the CCAA to develop and implement a plan of compromise or value-maximizing restructuring transaction.

Grant Thornton Limited, previously the proposal trustee, has been appointed monitor, and Bruce Bando of that firm will serve as foreign representative to coordinate recognition with ongoing US Chapter 15 proceedings before the Bankruptcy Court for the District of North Dakota. The Court extended the stay of proceedings to Walgre’s US affiliate and to Mr. Grewal and his property, authorized continued borrowing under the DIP facility, and maintained the administration and director’s charges. It also permitted limited pre-filing payments to critical suppliers and approved a claims process to quantify and reconcile all creditor claims.

Bennett Jones LLP and Vogel Law Firm act for the applicants, Dentons Canada represents the DIP lender, and Chaitons LLP advises the monitor.