Payouts begin flowing to truck drivers from Celadon Group’s Hyndman Transport months after forcing the bankrupt trucking company to court in Canada.
Court orders pave the way for bankrupt Celadon to move forward with existing deals to sell two Canadian properties of Hyndman Transport for a combined C$16.25 million — with a portion set aside for former truck drivers and other personnel.
Celadon Group argues payouts will maximize value during the wind-down of its North American trucking businesses, but the proposal faces resistance from a U.S. federal trustee.
Lawyers for Celadon and former Hyndman Transport employees argue over whether the U.S. company behaved badly in Canada.
Ontario judge agrees to recognize Celadon’s Chapter 11 case and appoints trustee to supervise liquidation of Canadian assets.
Ex-chief financial officer of Hyndman Transport accuses Celadon in affidavit of depleting funds generated by profitable core business in Canada and hurting former drivers’ and others employees’ ability to claim more than C$2 million in unpaid compensation.
Celadon Group plans to ask Canadian court to recognize its U.S. Chapter 11 case as judge takes further steps to lock down Hyndman Transport assets.
Sale of Winnipeg terminal for C$4.25 million to commercial real estate firm appears set to be tied up in Canadian courts, where U.S. trucking giant’s failure to initiate timely bankruptcy proceedings north of the border may come back to haunt it and its creditors.
Celadon Group can’t sell off facilities without Canadian court’s OK, judge says as he prepares to place shuttered trucking company in receivership; ruling a victory for former employees, setback for U.S. creditors.
Lawyer representing 211 ex-Hyndman Transport personnel wants Canadian company placed in receivership to help secure more than C$2 million in unpaid compensation.
