Nadiscorp Logistics Group Inc.
Effective February 3, 2009, by Order of the Ontario Superior Court of Justice, A. Farber & Partners Inc. became the Interim Receiver and Receiver and Manager (the "Receiver") in respect of all the assets, undertakings and properties of Nadiscorp Logistics Group Inc.
On March 20, 2009, the Receiver filed an assignment in bankruptcy on behalf of Nadiscorp pursuant to an Order of the Honourable Mr. Justice Cameron dated February 20, 2009. A meeting of Nadiscorp's creditors was held on April 8, 2009, at which time inspectors were appointed to the bankrupt estate.
By Order of the Honourable Justice Wilton-Siegel dated May 20, 2009, the Receiver was authorized to implement a claims process for carriers of Nadiscorp in order to quantify potential carrier trust claims, if any. On May 29, 2009, the Receiver sent notices to all carriers of Nadiscorp setting out the Receiver's valuation of those claims (the "Carrier Notices").
On July 3, 2009, the Honourable Justice Morawetz heard a motion concerning the priority of carrier trust claims. His Honour reserved his decision, which resulted in the postponement of a distribution to carriers in accordance with the Carrier Notices. His Honour released his decision on September 25, 2009 (the "Decision"). The Receiver and the second secured creditor both appealed the Decision.
The Court of Appeal for Ontario heard the appeal and the cross-appeal on May 31, 2010 and upheld the Carrier Priority Decision. In dismissing the appeal of HOOPP and the cross-appeal of the Receiver, the Court of Appeal essentially confirmed that the Highway Traffic Act of Ontario regulates "persons in Ontario that arrange for the carriage of goods irrespective of where such carriage occurs". Following the deicison of the Court of Appeal, the Receiver revisited its review of freight charges due to carriers in connection with collected accounts receivable irrespective of where carriage occurred.
On September 13, 2011, the Honourable Justice Morawetz authorized and directed the Receiver to make distributions to carriers and the secured creditor in accordance with amounts calculated by the Receiver, as set out in its Fourth Report.
Cheques to carrier trust claimants, in full and final satisfaction of claims against the funds held by the Receiver, were mailed on or before September 16, 2011.
The Receiver anticipates a shortfall to the secured creditors. Accordingly, there will be no additional funds available for unsecured creditors.
Orders
- Order of Justice Morawetz dated February 3, 2009
- Endorsement of Justice Morawetz dated February 3, 2009
- Order of J. Cameron dated February 20, 2009
- Approval and Vesting Order of J. Cameron dated February 20, 2009
- Endorsement of J. Cameron dated February 20, 2009
- Order of Justice Wilton-Siegel dated May 20, 2009
- Decision of Justice Morawetz, dated September 25, 2009
- Order of Justice Morawetz dated December 31, 2009
- Endorsement of Justice Morawetz dated December 31, 2009
- Order of Justice Morawetz dated September 13, 2011
- Endorsement of Justice Morawetz dated September 13, 2011
Notices of Appeal
Notices to Creditors
Reports