I was under the impression that Medican was already out of court ordered creditor protection:
Several interesting stories from the Medicine Hat News, Lethbridge Herald, Western Wheel:
Medican attempts to get back into the swing
firstname.lastname@example.org Twitter: CollinGallant
A former pillar of the Medicine Hat construction community is poised to come out from under court-ordered creditor protection, according to Ty Schneider, the chief restructuring officer at Medican.
Court proceedings this week and next should be the final phase, said Schneider, before a new entity emerges from the tangled story of the collapse of the construction and development company in May 2010.
"Things have come along way from where it was, and 2013 and 2014 should be good years of building," said Schneider, who is confident that a Court of Queen's Bench judge will approve the final settlement.
A settlement arrangement that was voted on and approved in January 2012 that would see unsecured creditors paid up to a guaranteed amount of $2,750 and then part of a $10-million fund built up by the company was approved by a majority of nearly 500 unsecured creditors who voted.
Creditors who spoke with the News this week say they have had no contact with the court-appointed monitor about possible payments.
In August, officials with Ernst and Young said they were beginning the process of verifying claims. Interview requests with the monitor made this week were not returned.
According to court documents, the new company has three years from the time it emerges from court protection to disperse the funds after it initially builds up $1 million, then quarterly as funds become available.
"It's very clear in the court order, we've agreed as a company to pay $10 million. " said Schneider. "The jobs that we've got are good jobs, and providing that we can get financing, provided the market remains stable, we can do OK."
Frustrated creditors reacted poorly to the news this week that Medican is planning to build a new hotel and commercial development in the Crowsnest Pass but officials with the company emerging from court protection say new money coming in means debts will be settled sooner.
"How do you spend money that you don't even have to pay back money that you can't pay back? It's business backwards to me," said Dawn Cameron, whose company Budget Blinds was owed about $7,500 when the company filed for creditor protection.
Spider Electric of Medicine Hat was owed $1.3 million by Medican, and now the owner is resigned to the idea that no funds are forthcoming.
"Education costs money and we got schooled pretty hard," said company president Mark Simmons. "We prepared ourselves but we're not expecting a nickel."
The original unsecured creditors list shows that at least 66 local companies are owed more than $1,000, and 10 area firms are owed in excess of $100,000.
During the first year of the court proceedings, unprofitable operations were closed and assets like unsold condo units and land were ordered sold to pay almost $110 million owed to secured creditors.
Schneider said that at least $1 million of unpaid secured debt remains.
Along with work in the profitable concrete pouring wing of the company, the courts have allowed Medican to move ahead with or complete projects deemed profitable in the interest of maximizing the value of assets for settlement.
Along with the Crowsnest development, the company has a new project to build a hotel in Okotoks and is completing work on condo projects in Red Deer begun in 2011.
Most of the new investment has been made by individuals, said Schneider, though one chartered bank, ATB Financial, has extended terms to the company.
Medican looking to build hotel in the Crowsnest Pass