On December 9, 2019, Hyndman Transport Limited (“Hyndman Canada”) ceased all operations and terminated all of its employees without paying severance pay and other amounts owing to the employees. Hyndman Canada and its U.S. parent company, Celadon, immediately began liquidating all of its assets through the insolvency proceedings of Celadon in the United States.
Our firm, Koskie Minsky LLP was retained by a group of terminated employees. In January, 2020, we brought applications before the Ontario Superior Court of Justice objecting to the sale of Canadian assets through the United States proceedings without any court supervision in Canada. The Canadian judge issued directions restricting those sales without Canadian court approval.
In response to our court applications and the judge’s directions, on January 23, 2020, Celadon commenced proceedings in the Ontario Superior Court to Justice – Commercial List under the Bankruptcy and Insolvency Act, RSC 1985, c. B-3. On January 23, 2020, and after our involvement, the Court also appointed KSV Kofman Inc. as Receiver of Hyndman Canada. We also applied to the court to appoint our firm as Representative Counsel to all terminated employees of Hyndman. Celadon and other lenders opposed our motion. Despite the opposition, the judge appointed us as Representative Counsel.
The receiver has reported that there are insufficient assets in Hyndman Canada to pay all creditors and that there will not be any funds to pay the severance pay or termination pay owing to the employees.
Our mandate covers all current and former employees of Hyndman Canada, including those drivers referred to as “owners/operators” with respect to Claims (the “Represented Parties”). Under the Representation Order, Claims is defined as a claim that arises under a) law or equity and/or b) federal or provincial legislation, including vacation pay or unpaid bonuses, and which:
a) qualify for a payment under the Wage Earner Protection Program (“WEPP”); and/or
b) qualify as a secured claim; and/or
c) certain claims of owner/operators in respect of which the Receiver is holding the approximate total amount of $107,000 (these are amounts that were pre-paid to Hyndman by the owner/operators for fuel, maintenance etc.)
Jeff Sippel (the “Representative”) was also appointed as representative of the Represented Parties pursuant to Rules 10.01 and 12.07 of the Rules of Civil Procedure.
The court issued the Representation Order on March 16, 2020. Under paragraph 7 of that Order, any individual affected by this appointment who do not wish to be represented by the Representative and Representative Counsel must complete the Opt-Out Notice before April 16, 2020. A copy of the Representation Order can be accessed by clicking here and a copy of the Opt-Out Notice can be accessed by clicking here.
To view court documents, orders and other publicly available information with respect to the Receivership proceedings in Canada, please visit the website of the Receiver (KSV Kofman Inc.) by clicking here.
If you are a former employee of Hyndman Canada, with questions about the proceeding, please email us at firstname.lastname@example.org or call us at Toll Free is 1-833-630-1782.