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Canada 3000 Airlines and Related Companies
Employees
Page last updated: February 20, 2007
Status as at February 19, 2007
Airlines Employees
PricewaterhouseCoopers Inc., in its capacity as trustee in bankruptcy of Airlines (the "Trustee") has now determined that there may be funds available to enable a minimal distribution to Airlines' unsecured creditors, including employees' unsecured claims. At this time, the rate of the dividend cannot be determined, however the Trustee anticipates a distribution of approximately $0.019 cents on the dollar to creditors with proven claims. The dividend cannot be paid until a review of all unsecured claims has been completed by the Trustee and other statutory requirements have been completed.
In the meantime, we would advise you that Airlines' employees are entitled to share in any unsecured distribution with respect to their proven unsecured claim amount, which was filed on your behalf by the Trustee or by the union. The unsecured portion of your claim includes the balance of unpaid wages, vacation pay, severance and termination pay. You previously received a statement from the Trustee indicating your total claim against Airlines' estate and the allocation between a preferred and unsecured claim. The preferred portion of your claim was paid by the Trustee in September 2004.
The Trustee is in the process of reviewing all of the unsecured claims filed against Airlines' Estate. This process is expected to take several months. In addition, once the dividend rate has been calculated, the employee dividend amounts must be submitted to Human Resources Skills Development Canada ("HRSDC") to determine if there will be an overpayment of benefits with the payment of the dividend. Due to the number of employees, it is likely that HRSDC will require 3 to 6 months to complete its review. The Trustee will attempt to streamline the process with HRSDC to prevent delays.
In the meantime, if you have changed your address, you must inform the Trustee of your new address in writing, to:
Canada 3000 Airlines Limited
PricewaterhouseCoopers Inc., Trustee
Suite 3000, Box 82
Royal Trust Tower, TD Centre
Toronto ON Canada M5K 1G8
Attention: Donna Smith
Or,
Clearly address all faxes to Donna Smith
Section 1 - Filing a Claim with the Trustee for unpaid amounts (non travel)
Employees have a right to file a claim for unpaid amounts due to them, up to the date of bankruptcy. These amounts include unpaid wages, vacation, commissions, bonuses, severance, termination, pension, expenses, per diems and benefits. Canada 3000 Human Resources staff have calculated these claim amounts on behalf of the employees.
If you are a union member — Your union has filed one claim with the Trustee for all of its members.
If you are a non-union member — The Trustee has filed claims on behalf of all non-union employees who had an entitlement from the bankrupt estate. If you feel you are entitled to file a claim and have not received a Statement of Account from the trustee, please download the proof of claim form from the Trade Creditor section. The form must be completed and mailed to the Trustee at the address shown below. Also, please provide the necessary documentation to prove your claim.
Click on the following Adobe Acrobat file to view the court approved employee claims process.
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Employee Claims Process |
Status of Payments on Employees' Claims
The Trustee has completed a review of employee preferred claims with respect to the Canada 3000 Group of Companies and the following determinations have been made:
Note: A preferred claim of employees is governed by Section 136(1)(d) of the Bankruptcy and Insolvency Act ("BIA") which provides a claim to employees that is preferred over ordinary unsecured creditors, as follows: wages, salaries, commissions or compensation of any clerk, servant, travelling salesman, labourer or workman for services rendered during the six months immediately preceding the bankruptcy to the extent of two thousand dollars.
Canada 3000 Sales Limited ("Sales")
The Trustee has determined that there are funds available for payment of the preferred portion of the employees claims. Please note that the Ontario employees that were paid through the claim filed by the Ministry of Labour Employment Standards Branch against the officers and directors of Sales have already received their preferred dividend amount from American Home Assurance Company.
Before we can release these payments, Human Resources Skills Development Canada ("HRSDC") must first determine whether this payment will create a benefit overpayment. This process will take approximately 6 to 8 weeks. The dividend will be released once the Trustee has received the release from HRSDC. If HRSDC determined that the full amount of the dividend must be remitted to them to cover any overpayment of benefits, you will receive a Schedule A, T4A slip and cover letter showing the dividend amount that was paid to HRSDC. You must contact your local Employment Office regarding any HRSDC deduction. The Trustee has no control over this deduction.
Please update your address only if you are entitled to a dividend from a preferred claim. This will be a one time payment as no further funds are available for distribution.
Canada 3000 Airport Services Limited ("Airport Services")
The Trustee has made a distribution to employees with preferred claims in Airport Services. The distribution to the employees with respect to their preferred claims was 100 cents on the dollar. With the payment, the Trustee included a T4A for income tax purposes.
On May 13, 2004, the Trustee made a one time dividend payment to Airport Services employees with respect to their unsecured portion of their claim. The amount of the dividend was 20.36 cents on the dollar No further funds are available for distribution to the unsecured creditors. Included with your dividend cheque was a T4A Statement of Income for income tax purposes. Please retain this record and include with your 2004 income tax return.
Royal Handling Inc. ("Handling")
The Trustee has made a distribution to employees with preferred claims in Handling. The distribution to the employees with respect to their preferred claims was 55 cents on the dollar. With the payment the Trustee included a T4A for income tax purposes.
Royal Aviation Inc. ("Royal"), Canada 3000 Sales Limited ("Sales"), C3 Aventure Limitee/C3 Leisure Limited ("Leisure") and Holiday Travel Consultants Ltd. ("Tickets")
There have been insufficient recoveries or assets realizations in these bankruptcy estates to make a distribution to employees with respect their preferred claims. Therefore, there will be no distribution in these estates to employees.
Canada 3000 Airlines Limited ("Airlines")
The Trustee of Airlines has recovered $1 million from a claim Airlines had filed against certain trust funds held by Leisure (the "Settlement Funds"). This recovery will allow the Trustee to pay all of the preferred claims of Airlines' employees. Please refer to your Statement of Account mailed to you in March 2002 for the preferred portion of your claim. The employees who will receive a payment from the Settlement Funds recovered include employees of the following entities with proven preferred claims:
- Canada 3000 Airlines Limited;
- Royal Aviation Inc.;
- Royal Handling Inc.; and
- Canada 3000 Airport Services Limited
The foregoing is based on a decision of the Canada Industrial Relations Board dated November 8, 2001, wherein the above noted entities within the Canada 3000 Group of Companies were deemed to be a common employer.
The Trustee has now issued payment of the net preferred claims to the employees. Please refer to your original Statement of Account mailed to you in March 2002 to ascertain if you qualified for a preferred claim amount. If you do not have your statement and were a member of a union, please contact your union for further information as they filed claims on behalf of their members. Remember, any wages paid by Deloitte & Touche for amounts outstanding as at November 11, 2001 formed part of the preferred dividend payment as allowed by the Court Order.
If you received only a Schedule A, T4A slip and cover letter or a cheque showing an amount deducted, then Human Resources Development Canada ("HRDC") determined that you had some form of benefit overpayment and we deducted that amount from your payment. You must contact your local Employment Office regarding the HRDC deduction. The Trustee has no control over this deduction.
The Trustee will post any updates regarding this matter on this web site as it becomes available and we encourage you to check the web site on a regular basis. Please do not call our office. Please update your address only if you are entitled to a dividend from a preferred claim. This will be a one time payment as no further funds are available for distribution.
When you receive your dividend, or if your dividend has been sent to HRDC, you will receive a T4A Statement of Income that you must keep and file with your 2004 income tax return.
Change of Address
If you have a change of address, please send it to:
Canada 3000
PricewaterhouseCoopers Inc., Trustee
Suite 3000, Box 82
Royal Trust Tower, TD Centre
Toronto ON Canada M5K 1G8
Attention: Donna Smith
Or,
Clearly address all faxes to Donna Smith
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