GFA World Obtains Court Protection To Address Challenges and Chart Path For The Future
STONEY CREEK, ON, June 30, 2020 /24-7PressRelease/ — GFA World (“GFA Canada”) announced today that it has obtained an order (the “Initial Order”) from the Ontario Superior Court of Justice (Commercial List) (the “Court”) granting it protection under the Companies’ Creditors Arrangement Act (Canada) (“CCAA”). The Initial Order provides for a stay of proceedings in favour of GFA for an initial period until July 2, 2020, subject to such extensions as the Court may subsequently order, and the appointment of PricewaterhouseCoopers Inc. as Monitor in the CCAA proceedings. The court materials and other information regarding the CCAA proceedings can be found at the following website: http://www.pwc.com/ca/gfaworld.
Pursuant to the Initial Order, the Court has granted a stay of proceedings that will allow GFA Canada to, among other things:
• continue to raise donations from Canadians who are dedicated to helping those in need in south Asia;
• continue to ensure that GFA Canada’s small staff and infrastructure remain in place and engaged to allow GFA Canada’s charitable works to continue; and
• explore a CCAA plan of compromise or arrangement as a means for addressing claims, including any putative class actions and other litigation brought against GFA Canada, and seeking to resolve any and all claims and contingent claims against GFA Canada arising anywhere in Canada in a single forum.
Over the last couple of years, GFA Canada has realized declining donations as a result of the negative publicity arising from allegations and litigation brought against Gospel for Asia, Inc., a US charity (which litigation was settled last year, with no admission of wrong doing). In February 2020, a new putative class action was commenced in Nova Scotia against GFA Canada, Gospel for Asia, Inc. and certain of GFA Canada’s former and current directors and officers. GFA denies the allegations made in the new putative class action, and will vigorously defend the litigation and seek a complete and final resolution to the litigation within the CCAA proceedings. Furthermore, the effects of the COVID-19 pandemic has further caused a decline in donations.
The confluence of these factors has lead GFA Canada to seek protection under the CCAA. GFA Canada believes that the CCAA process will provide GFA Canada’s stakeholders, including its donors, with the necessary transparency to allow GFA Canada to emerge from the CCAA stronger and better equipped to continue to help those most in need in GFA Canada’s target jurisdictions.
A comeback hearing in respect of the relief granted pursuant to the Initial Order has been scheduled for July 2, 2020 (the “Comeback Hearing”). At that hearing, the Court will consider whether or not to extend the CCAA protection, and consider other related relief sought by GFA Canada. Interested parties that wish to appear at the Comeback Hearing should provide notice to the GFA Canada prior to the Comeback Hearing pursuant to the requirements set forth in the Initial Order. The court materials and other information regarding the CCAA proceedings can be found at the following website maintained by the Monitor: http://www.pwc.com/ca/gfaworld.
ABOUT GFA CANADA
Since 1984, GFA Canada has raised donations in Canada to fund charitable projects in south Asia in order to support those in need. GFA Canada funds services and programs that fall into four broad categories: (i) investing in community development; (ii) supporting children; (iii) broader compassion services, including helping families in need of care during disasters; and (iv) sponsorship of national workers.
For more information, please contact:
Pat Emerick, President
245 King Street East
Stoney Creek, ON L8G 1L9
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