Falcon Xpress Transportation Group has been placed in receivership, owing RBC more than $15 million.
The companies entered into a forbearance agreement in January, however RBC says the debtors breached that agreement.
The debtors also requested an extension to April 30, claiming terms of a new financing agreement had been reached with another lender, which would enable Falcon to pay out its RBC debt in full.
Jarnail Singh Sidhu is the sole director of Falcon Xpress and its related real estate. A judge appointed msi Spergel as receiver on April 25, effective May 16.
RBC’s legal team argued for the appointment of a receiver after Falcon Xpress missed payments in violation of the forbearance agreement and had its EDC insurance suspended for missed payments. (Falcon was able to bring its insurance payments up to date and had its policy reinstated, court filings show).
The company was also behind in property tax payments on its property at 6086 Mayfield Road in Caledon, Ont.
Established in 2004, court filings suggest Falcon employed about 300 people.
