November 3, 2016
On August 22, 2016, the Receiver finalized a sale of the majority of Arc’s assets to Jam Filled Entertainment. The sale to Jam Filled Entertainment did not generate sufficient assets to repay the debt to Arc’s secured creditors. Koskie Minsky understands that there are still some assets remaining to be dealt with, but we do not know whether sufficient funds will be available to pay any amounts owing to employees. Koskie Minsky LLP will continue to monitor the ARC Receivership proceedings, to determine if there are any opportunities for recovery for Arc’s employees from the estate of Arc.
The primary source for recovery for Arc’s employees at the present time is the Wage Earner Protection Program (“WEPP”) process, a federal government program which provides a payment of up to $3,900 to eligible employees whose employer has become bankrupt or entered receivership. In a previous communication, we explained that the deadline to apply for WEPP was September 23rd, 2016, and we understand that many of Arc’s former employees have applied for and received a payment from WEPP. If you have not yet applied for WEPP, even though the deadline has passed but it may still be possible to get a payment from WEPP. Please contact us and we can assist you with completing the application.