Good morning. This just arrived in my inbox…
Dear Pastors of the ABC District,
Thank you for your patience, prayers and support as we delivered some difficult news to our depositors. It was a comfort to us to know that you were there as counsellors and brothers in this time.
Upon returning to the District office from our meetings, our staff reviewed the transfer requests received for ABC District Investments Ltd. and as well, respond to those depositors looking for transfer requests. The amount of transfer requests for the RRSP, RRIF and TFSA accounts, coupled with the expected outstanding transfers, would have caused a cash flow shortage in the fund; the equivalent of an expected run on the bank. This unprecedented number of transfer requests created a significant issue. If the volume of transfers had continued, there was a potential that a number of DIL’s loans would have to be called in. It appeared that should some of those loans have to be foreclosed upon, then there would be losses to the fund.
This could have put DIL in the same situation as CEF – and we wanted to avoid any more hardship. As such, yesterday, the District (including the District, ABC District Investments Ltd, EnCharis Management and Support Services and EnCharis Community Housing Services) filed for protection under the Companies’ Creditor Arrangement Act (CCAA).
CCAA was recommended to us by our Counsel and professional experts. As part of this process, the loans identified as having a potential loss will have to be investigated and there will likely have to be write downs of the loans. However, as we have seen with other companies that have taken this step, the CCAA process has the potential to provide a more positive outcome for all the investors.
Our decision to begin the CCAA process was first and foremost to protect our depositors. But, it also ensures that expert oversight is in place to lead a plan through to completion and that all depositors are fairly treated.
Over the course of the next few days, we will be issuing communications to all our depositors via email and mail, and updating the website with this information. We also recognize that you may receive questions about this and have attached some materials we hope you will find useful in discussing the situation with your congregations.
Sincerely in Christ,
Rev.Donald Schiemann, President
Alberta-British Columbia District
Andreas Schwabe is editor and publisher of SolaGratia.ca, and an Edmonton-based multimedia & communication strategist and producer. His focus for SolaGratia is on administration, governance, and issues of faith. For clients, he writes or produces just about anything.