TORONTO, Ont. – An Ontario judge has barred U.S.-based Celadon Group from selling the assets of its Canadian subsidiary as he considers a motion for placing Hyndman Transport under receivership.
“The Canadian assets shall not be sold without the approval of this court,” Ontario Superior Court Justice Glenn A. Hainey said in an interim ruling issued Wednesday.
The ruling came after Toronto lawyer Andrew J. Hatnay filed a motion, seeking to place the Hyndman in receivership to protect the rights of its former employees.
Earlier in the week, the now-defunct Celadon was given the go-ahead by a U.S. court to sell the Hyndman headquarters in Ayr, Ont., for $12 million.
Hundreds of Hyndman employees have been exploring their options since early December, when the company shut down without warning after Celadon filed for bankruptcy protection in the U.S.
The former employees are owed millions of dollars in back wages and other benefits.
Hatnay, a partner with Koskie Minsky, said Hainey will hear the case again Monday. The judge hinted Wednesday that he is prepared to issue a receivership on Hatnay’s application.
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