A 46-year-old Canadian trucking company has been put into takeover at the request of Royal Bank of Canada (RBC), which said the carrier owed $6.7 million.

Kingsley Truck Transport ceased operations Thursday, while the British Columbia Supreme Court placed the carrier on the receiver because the company “cannot get transactions, financing or other arrangements to settle debts that are defaulted or owed to the bank,” court documents show. ”

This Vancouver Island trucking company was founded in 1979. It has more than 100 employees, including a fleet of 23 trucks and 41 drivers.

Company officials did not return FreightWaves' request for comment.

Kingsley trucking is linked to a timber company called SAN Group, which has disputed lenders in over $150 million, including Royal Bank of Canada and Commercial Development Bank of Canada.

SAN Group submitted creditor protection on November 29, 2024 under the Creditors Arrangement of Canadian Companies (CCAA).

The SAN Group, including Kingsley Trucks, was founded in 1979 by CEO Kamal Sanghera and President Suki Sanghera and partner Iqbal Deol. A group of companies includes five wood product manufacturing plants and more than 625 employees.

According to court documents, SAN Group's financial difficulties began in 2023, when global and domestic timber prices fell domestically and globally.

Royal Bank of Canada (RBC) convinced the court to add Kingsley Trucking to its February lawsuit, as well as another company owned by the SAN Group called Cojax Heavy Repair.

Kingsley Truck Transportation provides transportation services for San Group products on Vancouver Island, while Cojax provides heavy equipment repair services primarily to Kingsley, court documents say.

In a petition to add Kingsley Trucking and Cojax heavy repairs to the lawsuit, RBC cited payments from related companies filed with the Canadian SAN Group CCAA filing.

Deloitte's restructuring was appointed monitor of the SAN Group's CCAA program, and he said the payment to Kingsley in January was unexplainable.

"The monitor has not yet had a clear answer to the reasons why these payments led to the CCAA lawsuit," Deloitte said in court filings. "The monitor also learned that in October 2024, two payments from Kingsley of SAN Group totaled about $300,000, which appears to be related to Kingsley's SAN Group Accounts Payable Subledger or related to a specific account payment invoice."

The postal controversy over $6.7 million leads, shutting down Kingsley Truck Transport, which first appeared on FreightWaves.