Metroland Media Group Ltd.
December 22, 2023
We are writing to provide an update on the Metroland Proceedings since the Third Amended Proposal was accepted at the Meeting of Creditors on December 11, 2023.
Former Employees May Apply for a Payment under the Wage Earner Protection Program
In addition to its role as Proposal Trustee, Grant Thornton Limited was appointed as a Receiver over certain of Metroland’s assets on December 8, 2023.
In our view, under subsections 2(3) and 5(1)(b)(ii) of the Wage Earner Protection Program Act (the “Act“), the appointment of a receiver makes the Wage Earner Protection Program (“WEPP”) applicable to Metroland and its former employees. WEPP is a federal program that provides a payment to eligible employees who were terminated during the insolvency proceedings of their employer for unpaid wages and severance pay owing to them. In 2023, eligible employees can receive a WEPP payment of up to $8,278.83 toward their claim for unpaid wages and severance pay.
Former employees can apply for WEPP if they meet the following criteria:
• Their employment has ended;
• They are owed wages, vacation pay, termination pay or severance pay from Metroland; and
• The amounts owed were earned during the eligibility period or, in the case of termination pay or severance pay, their employment was terminated either during the eligibility period or prior to the discharge of the Receiver
Service Canada will review each application and determine whether an employee is eligible to receive a WEPP payment. Note, under section 6 of the Act, the following individuals may not be eligible if, during the period for which they are owed eligible wages:
• They were an officer or a director of Metroland;
• They had a controlling interest in the business of Metroland;
• They were a manager whose responsibilities included:
o Making binding financial decisions impacting the business of Metroland, and/or
o Making binding decisions on the payment or non-payment of wages; and/or
• They were not dealing at arm’s length with any of these persons.
WEPP Applications can be completed online here.
Note: The application will require Metroland’s estate number. When prompted, please enter the following, without any dashes: 31459718
Application to Court to Approve Metroland’s Proposal on January 18, 2024
As previously reported, Metroland’s Third Amended Proposal passed the requisite vote of creditors at the Creditors’ Meeting on December 11, 2023. In order to proceed to implementation, the Third Amended Proposal must also be approved by the Court.
The application to the Ontario Superior Court of Justice requesting approval of the Third Amended Proposal has been scheduled for January 18, 2024, at 11:00 AM ET. A copy of the Notice of Hearing from the Proposal Trustee is linked here. We will post the Court materials when we receive them.
Representative Counsel will attend the application hearing and provide non-union employees an update regarding its outcome.
