April 2024
Canadian transportation and logistics firm Pride Group and its affiliates have filed for Chapter 15 bankruptcy in the United States as the company aims to restructure amid soft conditions in the trucking industry.?
Pride Group’s transportation assets include 805 trucks and 2,600 trailers across North America, but the company now seeks bankruptcy in Canada and the United States, according to court filings in both countries.
Pride Group Holdings has 25 affiliate companies. All are included in the filing, and the companies are seeking to have their cases jointly administered.?
Lenders should use equipment finance agreements instead of traditional leases to skirt regulations and avoid fees.
So said members of a panel at the National Equipment Finance Association conference in California on March 27. A typical lease will see the lessor own the equipment for the duration of the lease; if the dealer or customer has a lease-to-own agreement, they assume responsibility when they pay off the loan.
Problems can arise in the vehicle leasing space with extra fees including toll violations and vehicle registrations that are the titleholder’s responsibility.?
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Defaults and delinquencies continue to plague the equipment finance industry, and the transportation segment is still feeling it most.?
While many segments of the equipment finance industry continue to face challenges in the tight lending environment created by higher interest rates, the trucking industry remains hardest hit as worse conditions lie ahead, Kit West, business development director at Wyoming-based lender C.H. Brown, told Equipment Finance News.?
“It’s across the board, in every industry; it’s across the board and in the trucking industry it’s going up,” he said. “Trucking is in an industry-specific recession.”
Equipment Finance Connect is pleased to again welcome the Federal Reserve to this year’s speaker faculty. Martin Lavelle, senior business economist for the Federal Reserve Bank of Chicago, will present at Equipment Finance Connect 2024 on the impact of current economic trends on the equipment finance market at the Omni Nashville Hotel in Nashville on Monday, May 6, at 11:05 a.m. ET. ?
Lavelle has worked with the Chicago Fed’s Detroit branch for nearly two decades and mainly focuses on rural economic development, the auto industry, consumer spending, construction and real estate. He routinely contributes to the Chicago Fed’s portion of the Fed’s Beige Book, a report on the 12 districts represented by Federal Reserve banks, and is an author for the Midwest and Michigan Economy blogs. ?
Lavelle will give a presentation about how larger economic headwinds impact the equipment finance market. In particular, he is expected to discuss how to identify signs of reversals in charge-off trends, strategies to manage macroeconomic conditions and the prognosis for interest rates.
Dealer registration is complimentary for Equipment Finance Connect.