News Update – District Board Meeting

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.


Source: http://abcdistrict.ca/updates

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.

What’s next?

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.

Andreas Schwabe

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.

6 thoughts on “News Update – District Board Meeting

  1. Yorkie

    We are tired of hearing about restructuring when it should be disolving the assets.
    The financial disaster has struck and lets face up to it. The age of our depositors require that we dissolve assets now while we are still alive.
    I feel that this term” restructuring ” has been a term to hide behind.
    The CEF is finished, you can be sure that the depositors have lost all interest and confidence in District.

  2. daniellion

    to repeat what i have said before, the current district board and office should have had the decency to resign a month ago, they are not needed , but are only in the way, obstructing everyone during the wrapup process now necessary to return partial amts to the naive investors

  3. That’s an interesting image. You might go so far as to suggest it’s a flaming greased whiffle-ball.

    The restructuring process was started about a year ago (the affidavit said last February). So really, this is nothing new.

    I was so busy quickly posting the item that I totally missed the statements part. Yes. Of course. You only need your statements AFTER the fund is insolvent. So you can, you know, see how much it has been devalued. Much like your opinion or say in the matter (apologies for the snarkiness).

  4. LS

    “1. Restructuring Committee: A new restructuring committee will be formed.” Uh . . . I wasn’t aware there was an old one.

    “2. The District intends to hire a Chief Restructuring Officer ” Hire, you say? With whose money? So . . . more executives on the payroll spending more of the depositors’ money. Which they don’t have. And which we don’t have, either. Yeah. Makes sense.

    “These two decisions were made to increase the financial leadership within the District.” Oh, so now we’re moving from good to great? Or is it from bad to worse?

    “We recognize that all our depositors need account statements, and we will be sending those out as part of the Claims process.” . . . because I really didn’t need a statement any time before now, surely.

    “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.”
    It’s deja vu all over again. Isn’t this where we were at the beginning of January?

    Why do I suddenly feel that I have been thrust into a game of hot potato — except that I’m playing it blindfold, and the potato has been replaced with a greased whiffle-ball?

  5. Darlene

    Is the district board making the restructuring decisions the same board that created this disaster? If so, they should all be fired and replaced with a responsible, honest group of financial experts within the district.

    • It’s the same board, and same officers (executives).

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