On October 15, 2010, North American Financial Group Inc. (“North American” or the “Company”) filed a Notice of Intention to Make a Proposal (“NOI”) pursuant to Section 50.4 of the Bankruptcy and Insolvency Act (the “BIA”). A. Farber & Partners Inc. (“Farber”) was appointed Trustee in the Proposal of the Company.
The effect of the NOI is that it provides an initial 30-day stay over all creditors staying all amounts outstanding effective October 15, 2010 (i.e., all amounts outstanding at October 15, 2010 and prior) whilst the Company formulates a Proposal to be presented to its creditors.
On November 12, 2010, the Court granted an Order providing a 45-day extension to the NOI stay period to December 29, 2010. A copy of this Order is attached below. During this time, the Company will continue to negotiate with third party investors to support a restructuring, as well as continue negotiations with the noteholders regarding restructuring of their notes, which would ultimately be reflected in a proposal to be filed and presented to investors/creditors of the Company.
In addition, an Order was granted by the Court on November 12, 2010 authorizing the Trustee not to publish, or make publicly available, the names and addresses of any person holding securities issued by North American. Management of the Company advised the Proposal Trustee that the noteholders expected that their investment would remain confidential and, in particular, that their identities would not be disclosed. Accordingly, the Company sought an exemption from the Proposal Trustee’s disclosure obligation under the BIA with respect to the names and addresses of these investors and the Court granted such relief on November 12, 2010. A copy of this Order is attached below.
On December 29, 2010, a Proposal was filed with the Official Receiver’s office. We mailed out the proposal package to all creditors on January 7, 2011. The First Meeting of Creditors was scheduled for January 19, 2011 at 10 a.m. at the Yorkland Hotel located at 185 Yorkland Blvd., North York.
On January 19, 2011, the meeting of creditors took place. As a result, the Proposal was approved by the requisite majority of creditors of North American.
A hearing for the Proposal to be approved by the Court was held on March 7, 2011, at 10 a.m. at 330 University Avenue, 7th Floor, Toronto, Ontario. A notice with the details of the hearing was forwarded to all the creditors who have filed a claim with the Trustee. The Court approved the proposal of North American Financial Group Inc. at that hearing. Posted below is the Court Order approving the Proposal.
The purpose of this website is to provide documents to any interested persons regarding the Proposal of the Company. The documents listed below are in pdf format and can be viewed and/or downloaded.
- Trustee’s Report re Court Approval of Proposal dated February 25, 2011
- Order of Justice Mesbur re Proposal Approval, dated March 7, 2011