January 23, 2020
Celadon Group, a significant American truckload shipping company, had its US Chapter 11 bankruptcy recognized in Canada on January 23 and a receiver was appointed to oversee the liquidation of the assets of Celadon Group's sole Canadian business, Hyndman Transport. On December 9, 2019, Celadon Group and its 25 subsidiaries (collectively, the "Chapter 11 Debtors") filed for Chapter 11 bankruptcy protection and ceased operations. During the summer of 2019, the decline in overall freight tonnage and excessive truck capacity led to a significant decline in freight rates and a corresponding decline in the Chapter 11 Debtors' liquidity. The Chapter 11 Debtors' principal secured creditors include MidCap Financial Trust, Blue Torch Finance, and Luminus Energy Partners Master Fund. Upon discontinuation of its business, Hyndman terminated nearly all of its workforce and purportedly owes former employees approximately $2.3 million. The appointment of a receiver will allow these employees to claim and receive statutory payments, including for unpaid wages and termination pay. Blue Torch Finance will be providing DIP financing during these proceedings. KSV Advisory was appointed receiver. Counsel is DLA Piper for the Chapter 11 Debtors and Celadon Group (as the foreign representative), Bennett Jones for the receiver, McMillan for Blue Torch Finance, Norton Rose Fulbright for MidCap Financial Trust, and Koskie Minsky for 200 former Hyndman employees.