Appeal in TCT Logistics case set for May

TORONTO, (Feb. 23, 2004) — The Ontario Court Of Appeal has scheduled May 5, 2004 as the date for long-awaited appeal in the TCT Logistics case.

KPMG — the Receiver of bankrupted TCT Logistics of Calgary — is appealing an August 2002 decision by Madame Justice Greer of the Ontario Superior Court, who ordered that the funds paid by shippers to bankrupt TCT Logistics for transportation services were trust monies, and therefore not subject to claims by creditors of the company.

The ruling essentially meant KPMG must release funds to a group of about two dozen Ontario carriers. The ruling was made despite KPMG’s argument that any monies set aside for the carriers should be released to pay secured creditors, who were reportedly owed $70 million.

It appears that in excess of $ 3.7 million in transportation payments are being held in trust pursuant to Madame Justice Greer’s ruling.

The Ontario Trucking Association, which coordinated the original legal challenge for carriers left unpaid by the company — said KPMG filed the appeal in order to seek clarification of a number of issues arising from Justice Greer’s order — including whether they as receiver could set-off any unpaid amounts owing by carriers to TCT; and whether Ontario’s Load Broker regulation applied regardless of where the contract for services was entered into, where payment for the services was given or received, and where the shipment originated, travelled or was destined.