Celadon Group plans to sell Hyndman Transport’s headquarters to a Canadian real estate firm for C$12 million after a U.S. federal judge approved the bankrupt trucking company’s request to fast-track the deal on Monday.
The sale appears set to close imminently, after Guelph-based Wyndham Street Investments signed a purchase agreement on Jan. 7, according to a filing in U.S. Bankruptcy Court for the District of Delaware.
The facility, located just off Highway 401, is likely Celadon’s single most valuable hard asset in Canada. Lawyers for Celadon asserted that the sale to Wyndham Street will command higher proceeds than if the facility were otherwise included in a forthcoming bidding process for the company’s other assets.
Lawyers for Celadon asserted that while the deal did not require the U.S. court’s approval, they sought it out of an “abundance of caution.”
The filing made no mention of any legal implications or potential challenges to the deal in Canada.
The sale could make it more difficult for former Hyndman employees and contractors to secure any owed compensation. The funds will leave Canada and be distributed in accordance with the U.S. bankruptcy proceedings.
Some former Hyndman employees and contractors have been consulting with lawyers since the trucking company shut down on Dec. 9 after Celadon filed for Chapter 11 bankruptcy proceedings.
Many say they are owed thousands of dollars in vacation pay, severance and other compensation. The absence of Canadian bankruptcy proceedings has complicated those efforts.
Celadon has said that it intends to secure recognition of the U.S. bankruptcy in Canada. Court records in Ontario do not show any public bankruptcy recognition proceedings for Celadon in Canada as of Jan. 1.
Canadian federal authorities are also investigating the dismissals of former Hyndman workers. The probe appears to be focusing on whether the dismissals constituted “mass terminations,” which could entitle former workers to substantial payouts in the event they did not receive proper notice.
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Rodger Armstrong
This was a clear attempt to circumvent the insolvency laws of Canada. A back room deal between several people and groups. I would take the position a Quebec based carrier is/was behind this shell game…