CCAA Process – Update on CEF
We have heard from many that you’d like more information about
the situation and the CCAA process. And we understand that. This is
a troubling time, with lots of unknowns.
We are in a situation where some of your questions are our
questions too.
The CCAA Process can be broken down into 4 phases:
of the creditors (how many of them, what do they know,
what do they need to get back, etc.). This information helps
to develop very specific next steps, for example:


Where there is a need for further expertise or
experience (i.e. the new Restructuring Committee
and Chief Restructuring Officer (“CRO”) search)
How are the creditors’ Claims going to be
established?
Phase 1: Getting Started (this is where we are)
Phase 2: All about you
The CCAA process cannot get going without the Initial
Order. This is when the Court approves of the District filing
under the CCAA and lays out very specific conditions for
doing so.
So, an assessment of the current situation has been done,
and the District has filed its application with the Court. Now
it’s all about you.
The Initial Order leads to the “Come Back” Application. The
“Come Back” Application is kind of like the District’s ‘status
update’ to the Court; every application is a bit different, but
the “Come Back” Application outlines specific next steps
that the District will be taking.
The time between the Initial Order and the “Come Back”
Application is a maximum of 30 days. We received the initial
order on January 23, 2015 and our “Come Back” Application
must be heard on or before February 20, 2015.
What happens in between?
The Monitor and the District work together to review the
District’s operations, and to better understand the situation
The way the number of creditors is established is through
the Claims Process. Each process is different depending on
the situation. We are working with the Monitor on the
Claims process and we will have a proposed one to share
with the Court by our “Come Back” Application.
Once approved, we can start collecting this information
from you.
Phase 3: The Future
To recap, we’ve identified the problem and the issue, and
we know what information we need from you. While the
Claims process is ongoing, the District (the restructuring
committee and CRO), in consultation with the Court
appointed Monitor, are going to develop the Plan of
Arrangement (a fancy way of saying ‘our go forward plan’).
What this looks like and what the repayment schedule could
be are questions we don’t have answers to … yet.
We’ve asked a lot of you. We’ve asked for your prayers. We’ve
asked you to tell us what you think. We’ve asked for your support.
And we hear you when you ask for more.
After this Plan is developed, the Monitor will advise on
holding creditor meetings where all the creditors whose
claims are accepted will be invited to hear about the Plan
and to formally vote. The Monitor runs the meetings and
administers the vote.
We are making a commitment:
Phase 4: Approval
With the Plan approved by creditors, it’s taken to the Court
for review and approval. If the Court says to go ahead, the
District and the Monitor will begin to implement the Plan
and repayment schedule.
Some questions will be answered in the “Come Back” Application –
and we should have those documents ready to go by February 17th.
They will be posted on the Monitor’s website and we’ll link to them
on ours as well.
There will be lots of detailed questions, and unfortunately we may
not know all of those answers just yet. But we are working on them.
As we walk through this, we’re also learning and trying to get
better; we’re implementing a new process to respond to your
questions on the website faster, and we’re trying to respond to
requests for information in the most detailed way we can.
1. That we will try to answer your questions in a timely
manner, even if it’s just to say we don’t know.
2. That we will search for detailed answers to your questions
wherever possible.
3. That we will proactively share information about the
process as often as we can.