Pride Group has filed for bankruptcy protection after a lender filed a $100 million breach-of-promise lawsuit. The post Canada’s Pride Group files for bankruptcy protection, faces $100M lawsuit appeared first on FreightWaves.
This kind of makes sense; this industry has seen a lot of debt-fuelled M&A over the last few years, and it tends to be a very debt-fuelled industry anyway (floating lines of credit, vehicle leases, etc), and with interest rates rising, the cost to service that debt comes right off the bottom line.
What will be interesting, in the Chinese “May you live in interesting times” curse sense of the word, is if this were to happen to TransForce, which has eaten most of the industry.
Also, our overlords are desperately trying to avoid this happening to real estate, by the way. A huge amount of that is just a debt-fuelled house of cards.
This kind of makes sense; this industry has seen a lot of debt-fuelled M&A over the last few years, and it tends to be a very debt-fuelled industry anyway (floating lines of credit, vehicle leases, etc), and with interest rates rising, the cost to service that debt comes right off the bottom line.
What will be interesting, in the Chinese “May you live in interesting times” curse sense of the word, is if this were to happen to TransForce, which has eaten most of the industry.
Also, our overlords are desperately trying to avoid this happening to real estate, by the way. A huge amount of that is just a debt-fuelled house of cards.