GFA World

CCAA

Page last updated: July 10, 2020

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.


On June 26, 2020 (the “Filing Date”), GFA World, (“GFA Canada”, or the “Applicant”) applied for and received an order (the “Initial Order”) for protection pursuant to the Companies’ Creditors Arrangement Act R.S.C.1985, c.C-36, as amended (the “CCAA Proceedings”) from the Ontario Superior Court of Justice Commercial List (the “Court”). On July 2, 2020 the Initial Order was amended (the “Amended and Restated Initial Order”) retroactively to June 26, 2020. The Amended and Restated Initial Order includes among other things, a stay of proceedings against GFA Canada, and the appointment of PricewaterhouseCoopers Inc., LIT as monitor of the Applicant (“PwC” or the “Monitor”).

The Initial Order, among other things:

  1. Approved a stay of proceedings up to and including September 18, 2020 (“Stay Period”), which applies against the Applicant, their Property and Business (as defined in the Initial Order) and the Monitor;
  2. Authorized the Applicant to continue to utilize the cash management system currently in place as described in the Affidavit of Patrick Emerick, sworn June 25, 2020 (the “Emerick Affidavit”), or replace it with another substantially similar cash management system (the “Cash Management System”);
  3. Granted a first ranking charge, in the amount of $150,000 (the “Administration Charge”), on the Property of the Applicant, as security for the professional fees and disbursements of the Monitor, the Monitor’s counsel and the Applicant’s counsel; and
  4. Granted a charge, in the amount of $75,000 (the “Directors’ Charge”), on the Property of the Applicant, as security for the indemnity granted to the Applicant’s directors and officers, which charge shall rank in priority to all other security interests, trusts, liens, charges and encumbrances, claims of secured creditors, statutory or otherwise.

In accordance with section 23 (1)(ii)(b) of the CCAA and the Initial Order, a notice was sent to all of the Applicants’ creditors who are owed $1,000 or more.

Status of File as of July 10, 2020

On July 10, 2020, the Monitor filed its first report (the “First Report”) with the Court to provide the Court with the information concerning:

  1. The activities of the Monitor since the Filing Date; and
  2. The Monitor’s views on GFA Canada’s motion for the Post-Filing Donations Order.

The motion will be heard on July 14, 2020.

Status of File as of July 9, 2020

On July 8, 2020, the Applicant filed a motion with the Court for

1.     An order (the “The Post-Filing Donations Order”) to, among other things:

a.     Authorize the transfer of all donations collected and received as of the Filing Date into a new trust account at a Canadian bank (the “Post-Filing Donations Trust Account”) to be held by GFA Canada as trustee;

b.     Approve that the amount equal to 20% of the Post-Filing Donations (the “Administration Funds”) shall be retained by GFA Canada in its general operation accounts for general operations; and

c.     Direct GFA Canada to provide the Monitor with a bi-weekly written report, to report on: (i) the amount of Post-Filing Donations received since the last bi-weekly report and since the Filing Date; (ii) confirmation of the amounts transferred to the Post-Filing Donations Trust Account and the amounts retained as the Administration Funds; and (iii) the amounts transferred from the Post-Filing Account by GFA Canada as trustee for the purposes of funding or carrying out charitable works; and

2.     An order (the “Standstill and Timetable Order”) to, among other things, approve the timetable for the Third Party Defendant Stay (as defined in the Emerick Affidavit) as follows:

a.     July 14, 2020:  Class Counsel materials due;

b.     July 21, 2020: GFA Canada responding/reply materials due (if any);

c.     July 31, 2020: Cross-examinations completed;

d.     August 7, 2020: 

i.     Class Counsel factum on Termination Motion; and

ii.     GFA Canada factum on Third Party Defendant Stay Motion;

e.     August 19, 2020: Responding Facta due;

f.      August 23, 2020:  Reply Facta, if any; and

g.     August 27 and 28: Hearing of motions.

The motion will be heard on July 14, 2020.

Contact us

Tammy Muradova

Consulting & Deals, PwC Canada

Tel: 1-888-444-2059

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