Jabez Financial Services Inc. (“JFSI”)

Receiver of the Property and Assets of Jabez Financial Services Inc.("JFSI")

Page last updated: August 26, 2010

This page is for information purposes only and you should consult your professional adviser if you have any questions or are uncertain as to your rights or obligations.


Status of the file as of August 26, 2010

The Receiver has now fully executed the terms of the Claims Procedure Order that was issued by the Supreme Court of Nova Scotia on March 8, 2010. The Receiver received 176 claims from potential creditors, of which, 4 have been disallowed outright by the Receiver for various reasons; none were appealed before the Court as per the terms of the Claims Procedure Order. Therefore, the remaining 172 claims have been admitted, in whole or in part, in the aggregate value of US$3,666,888.31.

On August 24, 2010, the Receiver's application for an order approving the distribution of US $500,000.00 to proven creditors in the Jabez Financial Services Inc. was heard and granted by the Supreme Court of Nova Scotia.

The disribution of US $500.000.00 results in a pro rata distribution percentage of 13.6355%. Therefore, in order to calculate the payment you will receive, multiply your admitted claim by 13.6355%.

Immediately upon issuance of the Order of the court approving the distribiution, the Receiver finalised the preparation of USD denominated cheques and, on August 25, 2010, placed them along with individual cover letters, in the mail to creditors. The cheques were sent to the last known address for each creditor, which addresses were updated based on direct contact from creditors, or on the claim forms received during the claims process. Please allow sufficient time to pass before contacting the Receiver about potentially lost or misdirected mail.

A copy of the Order noted above is available here in PDF form and is set out below in the "Court Orders" section of this page.

At this point in the Receivership, there remain various outstanding potential sources of additional recoveries, most of which are relatively nominal and highly speculative. The most significant of these is the potential for an further recovery of up to approximately $500,000.00 from the liquidation of First Curacao International Bank (“FCIB”) based on the Receiver’s admitted claim in that estate. However, the information currently available to the Receiver and to the public suggests that FCIB will not have sufficient liquidity to fully repay its outstanding debts. Time will tell whether there will be any further recovery into the Jabez estate.

Given the speculative nature of the FCIB and other potential recoveries, the Receiver cannot estimate if or when there could be a further distribution to creditors.

Status of the File as of July 19, 2010

The Poof of Claim process has now run its course. The last day to file with the Receiver a notice of dispute relating to a revised or disallowed claim was July 12, 2010 and the subsequent deadline for serving the Receiver with notice of any appeal of the Receiver’s decision has also now passed.

During the claims process, a total of 176 claims were received. The value of claims that were admitted totalled approximately US$3.63M; only four claims, totalling approximately US$55.3K, were disallowed.

The level of patience and cooperation that was demonstrated by the investors/creditors throughout the process was exceptional. This was very much appreciated by the Receiver’s staff members who carried out the process.

With the claims process now complete, and there being no outstanding disputed claims, the next step for the Receiver is to seek an order of the Court approving the proposed distribution (the “Distribution Order”). An application for such order has been prepared and will be filed in the coming weeks.

Immediately upon granting of the Distribution Order, the Receiver will be in a position to issue and send out cheques to proven claimants.

The Receiver expects that this process will be completed by the end of August, with cheques being issued during the last week of August or first weeks of September.

If you filed a claim and have not received a notice of revision or disallowance, (barring any mis-directed letters in the mail) your claim has been admitted as filed and you need do nothing further to receive your distribution payment.

Cheques will be issued in US dollars, drawn on the Royal Bank of Canada, payable to the name(s) of the investor/creditor, and mailed to the address of record, which should correspond to the address provided on your proof of claim. If you have moved since filing your proof of claim, please provide the Receiver with your new contact information as soon as possible: the Receiver’s contact information is above.

NOTE: THE DOLLAR VALUE OF THE DISTRIBUTION, AND THE RESULTING PRO RATA PAYOUT PERCENTAGE (I.E. THE AMOUNT TO BE DISTRIBUTED DIVIDED BY THE TOTAL VALUE OF ADMITTED CLAIMS), WILL ONLY BE SET ONCE THE COURT HAS APPROVED THE DISTRIBUTION.

Status of the File as of March 19, 2010

The Receiver has received questions concerning how to complete the Proof of Claim Form from several potential creditors. We have therefore prepared the following annotated version as guidance for anyone who may be having difficulty. Please consult the following document for assistance with completion of the Proof of Claim Form.

Status of the File as of March 11, 2010

On March 8, 2010, an Order of the Supreme Court of Nova Scotia (the "NS Court") was issued approving the procedure for the identification, quantification and determination of Claims by potential creditors of JFSI (the "Claims Order"). See below for a copy of the Claims Order.

The Claims Order contains the Notice of Deadline to File Proofs, the Proof of Claim form, and an Instruction Letter for the Claims Procedure (the "Claims Package", as well as forms to be used in the process of determining (revising or rejecting) claims and for dispute of such determination. Clean copies of the documents comprised in the Claims Package are posted below and may be accessed by anyone who has not received a Claims Package by direct mail, fax, or email.

Please consult the Instruction Letter for the Claims Process should you have any questions concerning the form or procedure for filing claims.

Status of the file as of January 29, 2010

The Receiver has filed its second report to the Court dated January 26, 2010. A copy of the report may be viewed below.

The Receiver has also drafted a proposed process by which potential creditors of JFSI must file their claim in the JFSI estate in order to be entitled to participate in future dividends from the estate. An application to approve the process will be filed with the court in the coming days. A hearing to approve the process is expected to be scheduled for early March, 2010. Upon approval by the Court, the claims process will be communicated to all know creditors and the Receiver will advertise as directed by the Court to ensure that any unknown potential creditors will have the opportunity to file lodge claim.

Status of the file as of October 14, 2008

On March 2, 2007 an Order of the Supreme Court of Nova Scotia (the "NS Court") was issued pursuant to an application by the Nova Scotia Securities Commission (the "Commission") to appoint PricewaterhouseCoopers Inc. (the "Receiver") as Receiver of the assets of Jabez Financial Services Inc. ("JFSI"). A copy the Order may be viewed below.

The Receiver will update this website as necessary to advise creditors of the current status of the file and to post Court Orders and other information obtained by the Receiver

For Further Information: Please call James Pomeroy at +1 (902) 491 7416

 


 


Court Orders:
 

641 KB Order of the Supreme Court of Nova Scotia approving the distribution of $500,000.00, dated August 24, 2010
641 KB Order of the Supreme Court of Nova Scotia (the "NS Court") approving the claims process, dated March 8, 2010

Appointment Documents:
 

641 KB Order of the Supreme Court of Nova Scotia appointing PricewaterhouseCoopers Inc. as Receiver of the Assets and Property of Jabez, dated March 2, 2007.

Receiver Reports:
 

641 KB Second Report of the Receiver, dated January 26, 2010.
641 KB First Report of the Receiver, dated May 31, 2007.

Creditor Information:
 

Further information will be posted as it becomes available.

Proof of Claim:
The following documents comprise the Claims Package and may be downloaded by anyone who believes they may be a creditor of JFSI.

641 KB Guide to completing the Proof of Claim form, dated March 19, 2010
641 KB Notice of the Deadline to File Proofs of Claim, dated March 10, 2010
641 KB Proof of Claim, dated March 10, 2010
641 KB Instruction Letter for the Claims Procedure, dated March 10, 2010

The following documents do not form part of the Claims Package but are for use in the Claims Determination process. These documents are not required to be downloaded or submitted with a Proof of Claim.

641 KB Notice of Revision or Disallowance, undated
641 KB Notice of Dispute, undated

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