Pride Group Announces Corporate Restructuring

Pride Group Holdings Inc. and other applicant companies (the “Applicants”) sought and obtained protection under the Companies’ Creditors Arrangement Act (the “CCAA”) pursuant to an Initial Order of the Ontario Superior Court of Justice (Commercial List) (the “Initial Order”). Other companies affiliated with the Applicants (the “Additional Stay Parties”, and together with Applicants, the “Pride Group”), although not applicants themselves, were granted a stay of proceedings as part of these proceedings under the CCAA (the “CCAA Proceedings”) for the duration of 10-days, subject to extension thereafter as the Court deems appropriate.

Certain companies in the Pride Group will file cases under Chapter 15 of Title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware (the “Chapter 15 Cases”) seeking recognition of the CCAA Proceedings within the territorial jurisdiction of the United States and other related relief.

We have taken these steps to commence the CCAA Proceedings and to seek recognition under the Chapter 15 Cases so that we can maintain our current operations, stabilize our business, establish governance controls and monitoring, and develop a plan to restructure for the benefit of our stakeholders. We believe this is in the best interests of all of our employees, customers, business partners and other stakeholders.

During the course of the CCAA Proceedings and Chapter 15 Cases, it is expected to be business-as-usual for the Pride Group as we continue to operate in the ordinary course under the protection of the Initial Order. We do not anticipate any disruption to the products and services we provide.

The Pride Group intends to use the protections afforded to it by the Initial Order to reorganize and/or restructure its businesses to address short- and long-term goals. We are optimistic and confident that the Pride Group will emerge from these proceedings as a stronger company with stronger overall financial health.

Ernst & Young Inc. has been appointed as Monitor in the CCAA Proceedings, and has retained Blake, Cassels & Graydon LLP as their legal counsel. The Pride Group has retained Thornton Grout Finnigan LLP as their Canadian legal counsel, and Linklaters LLP as their U.S. legal counsel, to assist them with this restructuring process.

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Sam Johal

President and CEO

Born in a modest Punjab village, Sam Johal learned the value of hard work from an early age while assisting his family on their dairy and agriculture farm. Despite challenges, he pursued economics studies in India before immigrating to Canada in 1993, where he faced economic hardships but persevered through physically demanding jobs.

Recognizing opportunities in the business world, Sam, along with his brothers Mark, and Jas invested in an underperforming hotel opportunity, transforming it into a profitable venture. Despite setbacks, Sam and Jas established Pride Truck Sales, which grew into North America’s largest seller of used commercial transport equipment, while Mark stayed in the hospitality game.

Sam and Jas have since grown Pride Group Enterprises to encompass a vast many industries, from truck repair, leasing and parts to logistics, Real Estate developments, factoring and so much more, the duo has created a one-stop solution for everyone within the trucking world.