District Office has updated the CEF investor page on the District website. Since traffic on that site has slowed, I figured it would be a good time to cross-post what was written. I’ve added emphasis to highlight bits and pieces that are of some interest. Here now, through the magic of copy-paste, are the postings.
Board Meeting Update
On Wednesday January 28, 2015, the District Board met to discuss the CCAA process and next steps.
Two decisions were made at this meeting:
1. Restructuring Committee: A new restructuring committee will be formed. This committee will be charged with guiding the CCAA process within the District and will communicate regularly with the Monitor.
2. The District intends to hire a Chief Restructuring Officer: The Chief Restructuring Officer (CRO) will be in charge of leading the CCAA process within the District, overseeing the day-to-day operations and participating in the Restructuring Committee. The current Board and staff will remain to support the development of the Plan and day-to-day business. The CRO will be identified from a short-list of financial experts. We are also looking for people who might have experience with ministry and/or faith based organizations. The District will consult with the Monitor in selecting the CRO. At the next Court date, provided that an appropriate candidate has been identified who is willing to accept the position by that time, the Court will be asked to approve the selection of the CRO.
These two decisions were made to increase the financial leadership within the District. It is important that current Board and staff remain in place during the CCAA process because it involves reviews and examinations of the operating functions of the District.
Now that we’ve filed for CCAA and notice has been issued, we are preparing to move into the next phase: the Claims process.
What is a Claim?
A Claim is a legal document that details how much each creditor is owed by the District (CEF), EMSS, ECHS, or District Investments Limited. The Claim also gives you the right to vote on any Plan that’s presented to the creditors.
How do I file one?
In consultation with the Monitor, we will be developing the Claims process, which the Monitor will oversee. This process is currently being finalized. We anticipate having more information about this process in the next week.
What does it generally involve?
The Claims process generally involves creditors providing confirmation of their identity and the current amount that is owed to them. We recognize that all our depositors need account statements, and we will be sending those out as part of the Claims process.
Isn’t the Claims process standard?
The basics of the Claims process are standard: the Court needs to know who you are and how much you are owed. But the mechanics of the claims process is unique to each CCAA. That’s why we are working with the Monitor to determine the most appropriate claims process for our situation.
What about the Plan of Arrangement?
The Plan will be developed in consultation with the Monitor. The process for developing the Plan includes a comprehensive review of the financials, operations and feasibility of any initial plans. We do not yet have a developed timeline for the Plan, but we are aiming to have it completed by the end of the Claims process to allow all creditors a chance to vote.