A Canadian judge approved the sale of the former headquarters and a terminal of bankrupt Celadon Group’s Hyndman Transport on Wednesday.
Ontario Superior Court Judge Glenn Hainey cleared the way for U.S.-based Celadon to proceed with existing deals to sell Hyndman’s Ayr, Ontario, headquarters for C$12 million and its Winnipeg terminal for C$4.25 million.
Hainey approved the sales on the recommendation of Hyndman’s court-appointed receiver, KSV Kofman, which is overseeing the liquidation of the defunct trucking company’s assets. In January, the judge ordered Celadon not to proceed with any asset sales after the company began taking steps to liquidate Hyndman assets without Canadian court approval.
KSV plans to set aside about C$900,000 from Hyndman assets to pay claims to former Hyndman Transport personnel, mostly truck drivers. The bulk of the funds will ultimately be paid to Celadon’s creditors in accordance with its U.S. Chapter 11 proceedings.
The intervention of a Canadian court in January came in response to a petition by a lawyer representing more than 200 former Hyndman personnel seeking about C$2 million in unpaid compensation. Toronto labor lawyer Andrew Hatnay alleged that Celadon was liquidating its Canadian assets while avoiding its obligations to its former Hyndman personnel.
Hainey also agreed to have Hatnay and his law firm designated as the legal representation for former Hyndman personnel. The judge also ordered that about C$77,000 be set aside from Hyndman assets to pay legal fees.
The firm had taken on the case without payment and will continue to represent the former personnel as the liquidation proceeds.
Hatnay told FreightWaves that the representation order is a “step forward” for former employees but declined to comment on the asset sales.
Celadon abruptly closed Hyndman in December after it filed for Chapter 11 bankruptcy protection in the U.S. The company took no steps to formalize the trucking company’s closure in Canada, which left about 400 former Hyndman personnel unable to apply for government benefits.
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