Update on the ABC District Situation – September 3, 2015

The Alberta-British Columbia (ABC) District group had their most recent court date on August 28, at which time the Court approved an extension of the Stay of Proceedings until October 30, 2015. By that time, the court-appointed Monitor, Deloitte Restructuring Inc., anticipates the District will have sought authorization to present its proposed Plans of Arrangement to creditors.

In their report to the Court ahead of the hearing, Deloitte details a timeline for the implementation of the Plans of Arrangement. While noting a number of issues that still need to be clarified before the plans can be finalized—potential mortgage challenges between Church Extension Fund (CEF) creditors and District Investments Ltd (DIL) creditors, for example—the Monitor nevertheless anticipates that a Meeting Order will be sought from the Court “as soon as practicable and no later than October 30, 2015.” This order will see the Court accept the Plans for filing and allow the District Group to present these plans to creditors for their consideration.

Information packages would be mailed to all creditors within fourteen days, a series of information sessions for creditors would be held by the Chief Restructuring Officer between 19 and 45 days, and meetings for creditors to vote on the plans would take place between 45 and 55 days (all days being counted from the date the Meeting Order is granted). If the Plans are approved by creditors, they would then be presented to the Court for final approval within fifteen more days.

According to Deloitte’s report, draft plans have already been circulated to both the Monitor, the Monitor’s legal counsel, the Representative Counsel, and the Committees for their input.

Property sales

The Court has authorized the District to sell a number of properties under the guidance of the Monitor in order to recoup funds for creditors in the CEF and DIL. In its most recent report to the Court, Deloitte reports the net proceeds from three such property sales: lands located in Chestermere, Alberta earned $7.9 million; the Faith Lutheran School lands in Edmonton earned $3.6 million; and a condo in Richmond, British Columbia earned $388,700. A condo in the Prince of Peace village which was subject to a life lease also generated a 5% transfer fee to District of approximately $19,500.

At its most recent hearing, the Court was asked to approve the sale of lands in Revelstoke, British Columbia, a request which was granted. Other properties currently listed for sale include the ABC District office building in Edmonton; lands in Elford, Alberta; and lands in St. Albert, Alberta. A previous offer to purchase the lands in St. Albert, Alberta failed to be completed.

The Monitor’s report further notes that the District Group is working with congregations who still “hold outstanding loans and mortgages to facilitate the repayment of those loans and mortgages.” In late August, the ABC District requested prayer for a number of LCC congregations who “continue to face the reality that they may have to move from their church building.” Among these are Trinity Lutheran (Fort McMurray, Alberta); King of Kings Lutheran (St. Alberta, Alberta); Shepherd of the Valley Lutheran (Canmore, Alberta); Prince of Peace Lutheran (Calgary, Alberta); and Immanuel Lutheran (Elkford, British Columbia).

District staff

District staff have vacated their office building in Edmonton in anticipation of its being sold, and have taken up residence in space provided by Concordia Lutheran Seminary. As of September 1, there are three full-time employees serving the ABC District, including new District President Glenn Schaeffer.

Previous reports from The Canadian Lutheran related to the ABC District situation can be found here.

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