Lutheran Church Alberta-B.C. district working on potential plan for troubled fund

As depositors of a massively troubled fund within the Lutheran Church of Canada’s Alberta-B.C. district wait for options, officials are working on a potential plan to hopefully save their investment.

As 660News reported last month, the district’s Church Extension Fund is facing a massive shortfall and has been suspended because of investments that are not returning a profit and investors now have two options.

One is liquidation immediately by selling off assets including churches and other buildings or investment restructuring, while receiving some payback from assets such as the Prince of Peace Manor and Harbour, which is located east of Calgary.

The depositors are owed $95 million and it’s not clear how long a potential restructuring plan could last.

The church held multiple public hearings with the over 2,600 depositors of the fund and Rev. David Dressler, one of the district’s vice-presidents, said there was a clear desire for more information about restructuring and for professionals to be involved.

Late last week, the district appeared in Court and was granted an extension for bankruptcy protection until March 27th under the Canadian Creditors’ Arrangement Act and the order for a Chief Restructuring Officer was also appointed.

Now officials are working on what a potential restructured investment plan would look like and Dressler said once it’s done, it will be presented to Deloitte.

“When it is ready and the Court has looked at it and approved it, then it as soon as possible will be going to the people for a response,” he said, adding despite the frustration and worry over depositors, this is the right path.

“There seems to be a great desire to move forward with this process as quickly as possible, so under the CCAA process right now, we’ve made some significant moves forward with more yet to come.”

Dressler wouldn’t speculate on what direction depositors would approve.

“I eagerly too am waiting to hear what the people would say, whether they vote yes or no for restructuring and then where we go from there,” he said.

However, when that plan comes to the people isn’t clear since the Chief Restructuring Officer still has to be selected and the plan has to go to Court.

“As with any process it’s very difficult to put any dates to it,” Dressler said, adding the soonest could be spring but he couldn’t give a solid date range. “The goal of the ABC District is to get the plan out to the people as soon as possible, but it is very difficult to say at this point just how soon is that.”