Danier Leather Inc., June 13, 2016
June 13, 2016
30 Day Notice From KSV Kofman Inc.
On June 7, 2016, KSV Kofman Inc., the Trustee in Bankruptcy (“Trustee”) of Danier Leather Inc. (“Danier”), sent a document entitled “NOTICE REQUIRING PERSONS TO PROVE CLAIMS” to the known creditors of Danier (the “Notice”). The Notice explained that a dividend may be declared by Danier’s bankrupt estate within 30 days from the Notice date and if persons with claims against Danier do not file their claim within the 30 days, the Trustee is entitled to make a final dividend without regard to the claims that have not yet been filed.
If you are a former Danier employee with an employment related claim who is covered by Koskie Minsky LLP’s representation order, and who has not opted out, then you do not need to take any action at this time in regards to the Notice.
Koskie Minsky LLP, as Representative Counsel to the former employees of Danier, will comply with all applicable time lines in regards to the Notice. Koskie Minsky LLP is preparing claims for all former employees who we represent, and when action is required of you in this regard, we will send you notice by mail.
If your mailing address changes, it is important that you update it with Koskie Minsky LLP. You should also ensure that the Trustee has your current mailing address. Please email any address changes to the Trustee at aedwards@ksvadvisory.com.
Wage Earner Protection Program Act
In the coming weeks, the Trustee will also be sending the former employees of Danier documents in relation to making a claim under the Wage Earner Protection Program (“WEPP”). The WEPP is a government program that provides compensation to eligible former employees for unpaid wages, vacation, severance, and termination pay.
These documents will include a calculation of the amount that the Trustee believes that you are entitled to under employment standards legislation in your province.
The maximum amount that a former employee can currently receive under WEPP is $3,907.68. This means that if your claim is greater than this amount, for example $5,000, but you believe that it should be even higher, there is no need to dispute that at this stage. Your claim will be capped at the maximum amount in any event.
It is also important for former employees to know that the amount of their claim under WEPP does not determine their ultimate claim in the estate of Danier. If you believe that you have a greater claim than that submitted in the WEPP process, it will be possible for additional amounts to be claimed against the estate of Danier through the bankruptcy proceeding. Former Danier employees who believe that they are entitled to additional amounts or claims, such as for common law damages or employment benefits, will have an opportunity to assert those claims. Koskie Minsky LLP, as Representative Counsel to the former employees of Danier, will be asserting claims on your behalf, unless you have opted out. You will have an opportunity to review your claim before it is finalized.
More information about WEPP is available from Service Canada, at the following address: http://www.servicecanada.gc.ca/eng/sc/wepp//index.shtml
If you have questions in relation to your WEPP application or any other matters, please contact Koskie Minsky LLP.
