Hyndman compensation payouts begin

by Abdul Latheef

TORONTO, Ont. – For some former employees of the now-defunct Hyndman Transport, the monthslong wait for compensation is over.

They started receiving payouts last month under the federal government’s Wage Earner Protection Program (WEPP), which provides compensation to individuals whose employer is bankrupt or subject to a receivership.

Hyndman
Photo: Abdul Latheef/Today’s Trucking
Hatnay
Andrew J. Hatnay. Photo: Supplied

“This is the reason we pushed so hard for a receivership,” said Andrew J. Hatnay, the lawyer who fought for Hyndman workers’ rights, referring to the appointment in January of KSV Advisory as the receiver.

“Without a receivership and without being able to obtain WEPP payment, employees would have recovered nothing,” Hatnay said.

Hyndman was the Canadian subsidiary of American trucking giant Celadon Group, which filed for Chapter 11 bankruptcy December 9, forcing thousands out of work overnight.

Hatnay, a partner with Koskie Minsky, represented 250 of the 400 Hyndman employees. He has said that they are owed more than $2.3 million.

Receiver’s report

KSV

In a report filed with the Ontario Superior Court on June 24, KSV Advisory said that 365 people had applied for compensation.

“The receiver has been advised that certain former employees have recently started receiving their WEPP payments from Service Canada,” it said.

Ideally, under provisions of the Bankruptcy and Insolvency Act, the government would later recover the money from the sale of the assets of the bankrupt entity.

In the case of Hyndman, however, it is doubtful any money would be left after meeting the debt obligations of priority creditors.

“The liquidation analysis reflects that, on a global basis, recoveries are not expected to satisfy the Chapter 11 debtors’ secured obligations,” KSV Advisory said in its report.

Hyndman
Hundreds of trucks owned by Hyndman Transport were sold off at an auction in Bolton, Ont., in March. Photo: Abdul Latheef/Today’s Trucking

Owner-operators

It was also not immediately clear how many former employees have received compensation, but an owner-operator who worked for Hyndman said his application was still pending.

“We still have a fading hope (of receiving compensation).”

– Former Hyndman owner-operator Ahmed Issa.

“Contractors or owner-operators have yet to see a dime trickle in our accounts,” said Ahmed Issa.

“But we still have a fading hope.”

Hatnay confirmed that all employees who are owed severance will be receiving a payment from WEPP, including some of the owner-operators.

KSV Advisory has completed the sale of most of Hyndman’s assets, including its former headquarters in Ayr, Ont.

The receiver has listed the sale of the remaining property in Wroxeter, Ont., as well as completing the WEPP claims process as its main priorities. Another objective is to determine the validity of a trust claim by owner-operators, it said.

And in early March, hundreds of trucks owned by Hyndman were sold off at a Ritchie Bros. auction in Bolton, Ont.

Overall, Hatnay said, he is happy the way KSV has handled the liquidation process.

“We believe the appointment of a receiver was critical to this process, and has facilitated the payment of WEPP to the terminated employees.”

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  • Owner ops have been short changed on this. The Ontario government dragged this out and the C T A stood in the way 10 months ago when I and others informed both the Ont T transportation minster and the O T A were told on October 17 of last year by letters from me and others. We need a complete review of how this was allowed to happen.

  • if I am not mistaken Hyndman canada still have add on the job site and looking for drivers???? what is the deal??

  • I went threw the same BS with Atomic an TCT logistics we all got the nothing even our penison money was gone. The goverment did nothing for us .Now they want us to keep the supplychain going. yes very sad for the trucking industry. ALL TRUCKERS ALWAYS HAVE TO FIGHT FOR EVERYTHING WE ARE HARD WORKER..TK U