THE LAND CONSERVANCY OF BC TO SUCCESSFULLY EXIT CREDITOR PROTECTION
FOR IMMEDIATE RELEASE: December 2, 2016
Victoria, BC – The Land Conservancy of B.C. (TLC) held its final meeting with creditors today to seek approval of its revised Plan of Arrangement and Compromise (POA) and the conclusion of its time under the Companies’ Creditors Arrangement Act (CCAA). In a supportive vote, creditors approved the non-profit’s POA and subsequent exiting of creditor protection.
To be accepted a majority of both the voting secured and unsecured creditors representing in value two thirds of the total value of the claims had to approve the POA.
“TLC’s intention since entering CCAA has been to protect TLC properties, to pay creditors to the fullest extent possible and to ensure that TLC has long-term viability,” said Cathy Armstrong, TLC Executive Director. “We are incredibly grateful to our creditors for their patience throughout this process and their supportive vote today. We look forward to beginning the next stage in TLC’s evolution at this important time in conservation.”
TLC sought protection under the Supreme Court of British Columbia monitored CCAA in October 2013 as a means of definitively resolving the organization’s debt to secured and unsecured creditors. The CCAA is federal government legislation that grants an organization time to restructure while under the direction and protection of the Court.
TLC entered creditor protection with debts totaling $8,045,530, including $4,366,974 in secured debt and $3,678,556 in unsecured debt.
The positive creditor vote enables TLC to clear all remaining secured debt as proposed in the POA.
Following the successful vote, TLC’s 147 unsecured creditors will receive payments of the full amount of their claim up to $5,000.
TLC’s 55 unsecured creditors with claims of more than $5,000 will receive further payments of approximately 22.5% of remaining claims after the transfer of Wildwood Ecoforest closes on December 20, 2016, and an additional 9% if and when the densities zoned on Abkhazi Garden are sold.
“On behalf of TLC’s Board, I wish to thank our partners in conservation, including countless individuals, other land trusts and non-profits, for their support throughout this process,” said Frances Pugh, Co-Chair of TLC’s Board of Directors. “With their help we have been successful in identifying conservation-minded stewards for all of the properties transferred over the last three years, upholding the complex responsibilities that came with transferring properties donated for charitable purposes and remaining a viable organization.”
“The process from identifying the financial problem to solving it has taken a decade,” says Past Chair, Briony Penn, “and has involved a large number of dedicated members, volunteers including past Board members , donors, creditors, members of other organizations and the general public. To all these people we extend a huge thank you as without their help these lands, covenants and further trust in the land trusts movement would have been lost.”
In accordance with the requirements of the CCAA process, TLC will apply for a final order of approval of the POA from the Supreme Court of British Columbia. The existing stay of proceedings under the CCAA will continue until the filing of the Certificate of Completion by the Monitor, which is expected to be submitted to the Court before the end of the calendar year.
Upon completion of the CCAA process TLC will continue to hold more than 240 covenants on properties throughout B.C. and own seven properties including Abkhazi Garden.
About The Land Conservancy of BC:
The Land Conservancy of BC (TLC) is a non-profit, charitable Land Trust working throughout British Columbia. TLC’s primary mandate is to benefit the community by protecting habitat for natural communities of plants and animals. Founded in 1997, TLC is membership-based and governed by an elected, volunteer Board of Directors. TLC relies on a strong membership and volunteer base to help maintain its operations.
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TLC Executive Director
Office (250) 479-8053
Cell (250) 588-4945