Vicinity, a bus and truck manufacturer based in Aldergrove, was forced into receivership by the Royal Bank of Canada after facing a lawsuit from Prince Albert, Saskatchewan. The municipality sued Vicinity for over $6 million due to quality issues with seven buses purchased in 2019, which were found to have cracks in their frames, leading to safety concerns and service disruptions.
Prior to being forced into receivership, the Aldergrove-based bus and truck maker Vicinity was being sued by Prince Albert, Sask. for more than $6 million over quality issues concerning seven buses that had to be pulled from the prairie city's public transit service after cracks in their frames were discovered.
A claim was filed after the buses, acquired in 2019, were declared unsafe by Saskatchewan Government Insurance , forcing the municipality to scramble to find replacements and maintain service. Under Canadian law, if a company in receivership is being sued, the party that filed the suit will need permission from the court.According to court documents, Vicinity owes $69 million, half of it to the Royal Bank of Canada and Export Development Canada , and the rest to a long list of foreign and domestic businesses that does not include Prince Albert.
Established in 2008, the company, initially called Grande West, was formed to meet a request for smaller and mid-size buses from BC Transit by building a low floor, heavy-duty, mid-sized model.
RECEIVERSHIP LAWSUIT BUS MANUFACTURING FINANCIAL TROUBLES PRINCE ALBERT
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