CCAA Court Approves Sale of Pride Group Logistics

MISSISSAUGA, ON / ACCESSWIRE / September 26, 2024 / Pride Group Logistics Ltd. ("Pride Group Logistics") today provided an update on its proceedings under the Companies' Creditors Arrangement Act (the "CCAA"). Pride Group Logistics is pleased to announce that the Ontario Superior Court of Justice (Commercial List) ("CCAA Court") has approved a transaction pursuant to which 1000927605 Ontario Inc. (the "Purchaser"), a special purpose entity supported by the founders of Pride Group Logistics, will acquire substantially all of the assets of Pride Group Logistics necessary to continue operating the business as a going concern (the "Transaction") to continue to serve Pride Group Logistics customers and maintain the jobs of its over 500 employees and contractors.

On May 15, 2024, the CCAA Court granted an order (the "SISP Order") authorizing Pride Group Logistics to conduct, under the oversight of Ernst & Young Inc., in its capacity as court-appointed monitor (the "Monitor"), a sale and investment solicitation process (the "SISP") for Pride Group Logistics business and assets. Pursuant to the SISP, the Purchaser's proposal was identified as the Successful Bid (as defined in the SISP).

The Transaction will be completed pursuant to a purchase agreement (the "Purchase Agreement") dated Sept. 22, 2024, among the Purchaser, Pride Group Logistics and certain of its affiliates as vendors.

Pursuant to the Purchase Agreement, the Purchaser will:

• acquire substantially all of the assets of Pride Group Logistics' business, including but not limited to the fleet of Pride Group Logistics vehicles, related equipment and inventory, all intangible assets, accounts receivable, cash, cash equivalents and prepaid expenses;

• assume Pride Group Logistics licenses and operating permits, subject to regulatory approval;

• acquire all intellectual property and goodwill of Pride Group Logistics, including ownership of all related names and trademarks;

• assume contracts of Pride Group Logistics and its affiliates critical to the business;

• acquire ownership of Pride Global Insurance Company Ltd.; and

• retain an option to acquire certain leasehold real property ancillary to the business or leases in respect thereof, subject to certain conditions.

The CCAA Court has approved the Successful Bid and granted authority to the Monitor to consummate the Transaction contemplated therein pursuant to the terms of an approval and vesting order ("AVO") to be issued by the CCAA Court in respect of the Transaction. Amongst other things, the Transaction will enable a continuity of operations of Pride Group Logistics, a critically important fulfilment business in Canada, for the benefit of its customers, suppliers, service providers, stakeholders and, most critically, its over 500 employees and contractors whose jobs will be preserved.

The closing of the Transaction is subject to issuance of the AVO and, if needed, an order assigning the critical required contracts to the Purchaser, as well as customary closing conditions and an order of the U.S. Bankruptcy Court recognizing the approval of the Transaction. The Transaction is expected to close on or about Oct. 16, 2024.

Contact Information
Jeevan Sandhu
Marketing and PR
media@pridegroupenterprises.com

SOURCE: Pride Group Logistics

View the original press release on newswire.com.