Frigid Rentals Inc. asks the Ontario Superior Court of Justice (Commercial List) on November 12 for 45 more days to make a proposal and for approval to borrow up to $1.6 million from Third Eye Capital Corporation, acting, the notice of motion says, "as agent for the Applicant's existing senior secured lenders," per the Notice of Motion, Nov. 5, 2026, paras. 1(b)–(c), 16–17. Those lenders were owed approximately $104,550,000 on November 1, exclusive of certain costs, according to the affidavit the company's chief executive swore on November 6, per the Frigid affidavit, Nov. 6, 2026, para. 46.
Founded in 2001 and based in Vars, Ontario, Frigid rented and leased tractors, trailers and specialized transportation equipment, refrigerated trailers among them, to pharmacy, grocery and retail brands, government agencies and industrial operators. In June 2026, in what the affidavit calls the Finloc Debt Exchange, approximately 1,302 assets were transferred to its primary equipment lender, Finloc 2000 Inc., in exchange for the retirement of approximately $65 million in capital lease debt. What remains is a service and maintenance business, including for end users of the transferred equipment, a fleet of approximately 24 power units and 12 trailers, and approximately 35 employees, per the Frigid affidavit, Nov. 6, 2026, paras. 7, 15, 18–19, 29.
The notice of intention to make a proposal under s. 50.4(1) of the Bankruptcy and Insolvency Act was filed on October 16, 2026, with Ernst & Young Inc. as proposal trustee, per the Certificate of Filing of a Notice of Intention to Make a Proposal, Oct. 20, 2026. The time to file a proposal, and the stay that comes with it, expire on November 15. The motion, Court File No. BK-26-03438388-0033, is returnable before Justice Dunphy at 12:00 p.m. on November 12, by video conference, per the Notice of Motion, Nov. 5, 2026, p. 1 and para. 10.
From 1,302 assets to a service business
From 2019, financing arranged by Third Eye supported the acquisition and operation of the fleets, which vehicle financiers including Finloc later refinanced, with the proceeds repaying part of the Third Eye facility. The chief executive dates the trouble to late 2023 and "a severe downturn in the Canadian trucking industry which struggled to transition from the supply chain disruptions caused by Covid-19." In 2024 the company moved into purpose-built premises of approximately 48,000 square feet in Vars. The move was delayed, the affidavit says, building out the premises cost approximately $2.4 million, and their occupancy and operating costs "exceeded the level that could be supported efficiently by the Company's activity." Through late 2025, the affidavit says, the shortfalls deepened with lower rental demand and rates, the rising cost of the equipment debt owed to Finloc, customers extending the useful life of end-of-life equipment, which exposed fixed-rate contracts more than 60 months old to rising repair costs, "an over-reliance on legacy pricing models," and parts inflation and wage pressure it could not fully pass on, per the Frigid affidavit, Nov. 6, 2026, paras. 8–11.
The premises lease, with Drevcon Holdings Ltd., runs until 2044 at approximately $102,000 a month in basic rent; after reduced payments from January 2026, approximately $1.9 million was outstanding under it on September 1, including build-out obligations the company assumed, per the Frigid affidavit, Nov. 6, 2026, paras. 31–33.
The lenders who are also the shareholders
In April 2025, the affidavit says, Third Eye Capital retained its affiant "to assess Frigid's operations and assist in developing and implementing an operational restructuring plan," as "an independent contractor with the role of Operating Principal." After working with management, including the founder, the affiant was appointed chief executive on May 31, 2026, and the founder became chief commercial officer. Both are independent contractors, not directly employed by the company, per the Frigid affidavit, Nov. 6, 2026, paras. 12–13, 36.
The board has three members: the founder, a second director and the chief executive. Under a second amended and restated shareholders' agreement dated May 1, 2026, Third Eye, "acting as agent for the majority shareholders, was entitled to appoint, and appointed," the second director and the chief executive. A footnote identifies those shareholders: "The majority shareholders are the same entities as the Lenders under the Senior Credit Agreement." The corporate chart shows what it labels "TEC Funds" holding 51% of Frigid and 2272501 Ontario Inc. holding 49%. "My relationship with Third Eye Capital and its roles in the Company's financing are disclosed to the Proposal Trustee," the chief executive swears, per the Frigid affidavit, Nov. 6, 2026, paras. 14 and n. 1, 26.
Cost measures before June 2026, among them head-count reductions, re-amortized service-truck leases and an informal rent reduction, came to approximately $200,000 a month in verified reductions in recurring costs or other measurable outcomes, the affidavit says, but "did not resolve the Company's equipment financing burden and liquidity shortfall," per the Frigid affidavit, Nov. 6, 2026, para. 15. The termination and release letter entered into with Finloc, dated June 12, 2026, recites that Finloc notified Frigid and its subsidiary, Frigid Asset Management Inc., of defaults by letter dated July 28, 2025, issued demands and accelerated, and agreed in a forbearance agreement of September 26, 2025 to forbear "for a period of time and on strict conditions," per the Termination and Release Letter, June 12, 2026 (Frigid affidavit, Ex. "M"), recitals.
The release ended the two companies' obligations to Finloc except for $1,220,875, the value attributed to assets "that could not be located and delivered to Finloc," owed on a promissory note running to May 1, 2030, and reserved each party's right to advance claims over alleged breaches of their June 26, 2024 priorities agreement. Frigid kept the service and maintenance work on the 934 units under contract, per the Frigid affidavit, Nov. 6, 2026, paras. 52–55.
Where the $104.55 million comes from
The senior debt is owed under a credit agreement dated as of March 4, 2022, with Third Eye as agent; the chief executive understands its balance that day was approximately $65 million, including interest and fees. By November 1, 2026 it was approximately $104,550,000, "exclusive of certain costs," made up, the chief executive understands, of approximately $60.7 million of principal attributable to cash advances, $27.7 million of capitalized contractual interest, $6.1 million of accrued unpaid interest, $8.6 million of default interest and $1.4 million of fees and other contractual amounts, "without duplication," per the Frigid affidavit, Nov. 6, 2026, paras. 43–46.
Frigid has been unable to make certain interest payments and remains in default, the chief executive understands; the agent and the lenders have reserved their rights and "have not agreed to forbear." "Despite these defaults," the affidavit says, Third Eye and the lenders have arranged to advance approximately $460,000 in "emergency funding" since the filing, per the Frigid affidavit, Nov. 6, 2026, para. 21.
The chief executive believes the debt is guaranteed by Frigid Asset Management, the founder, a second individual and ten other companies. The security includes, among other documents, a 2019 security agreement and deed of hypothec, a blocked account agreement over its Bank of Montreal collection account that has not been triggered, and a guarantor's pledge of 49% of Frigid's Class A common shares, per the Frigid affidavit, Nov. 6, 2026, paras. 41, 47–49.
About 35 lease and financing agreements cover the trucks, trailers and service vehicles the company still uses, at approximately $89,000 a month, with arrears of approximately $200,000. Approximately 26 are with Sterling Ford Sales (2020) Inc. and its financing partners, and on October 16, the day of the filing, Sterling Ford gave notice that it was exercising rights under a forbearance agreement to repossess certain leased vehicles, claiming $307,000, per the Frigid affidavit, Nov. 6, 2026, paras. 20(g), 60–61.
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