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Royal Bank of Canada
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Close 2024-04-11 C$ 137.25
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Globe says RBC told Mitsubishi sues Pride co-founders

2024-04-12 07:23 ET - In the News

The Globe and Mail reports in its Friday edition that one of Pride Group Holdings' major lenders is suing the trucking company's co-founders, Sam and Jasvir Johal, and alleging fraud, complicating the brothers' legal woes since Pride filed for creditor protection late last month. The Globe's Tim Kiladze writes that Mitsubishi HC Capital Canada, which lent money to Pride for the purposes of buying and leasing trucks, has filed multiple lawsuits against the Johals in Canada and the United States. In the American lawsuits, Mitsubishi alleged Pride has defaulted on its loans. In an Ontario suit, Mitsubishi alleged the same -- but added allegations of fraud. Late last year, Pride alerted Mitsubishi to some registration issues, but said it was the result of bookkeeping issues and promised governance reforms. In the Ontario lawsuit, Mitsubishi says it has since done more due diligence and found systemic issues, including "double VIN-ing"; VINs are vehicle identification numbers. Along with Mitsubishi, Royal Bank of Canada is one of Pride's major lenders. RBC is owed $346-million through Pride's securitization arm, where it packages leases, and RBC is also the lead lender for a syndicated loan worth $213-million.

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