The end is nigh for one of the most explosive political scandals in Manitoba history.
The road map for winding down the government-sponsored Crocus Investment Fund — which collapsed terrifically in 2004 — was recently approved by Manitoba’s Court of Queen’s Bench.
Justice David Kroft signed off Jan. 17 on the receiver’s plan for a fourth and final distribution of recovered funds to Manitobans who invested in the ill-fated fund two decades earlier.
After spending more than 34,000 hours working at liquidating and recovering assets held by the fund, Deloitte — the court-appointed receiver since 2005 — estimates $5.2 million will be left to distribute to shareholders. The accounting firm plans to keep $650,000 to cover costs related to administering the wind-down.
On the eve of the collapse in 2004, the share value was $10.45. Today, shares are valued at only $0.36.
Notices were published on Jan. 22, in both the Winnipeg Free Press and the Globe and Mail. In its most recent report, Deloitte says that if no objections are raised by Feb. 25 as a result of the public notices, it will “immediately commence the distribution.” Shareholders will then have six months or until Sept. 30 (whichever date is latest) to claim their entitlement.
All funds that go unclaimed — in addition to nearly $2 million in unclaimed funds from previous payouts — will be forwarded to the minister of finance and rolled into provincial coffers.
Crocus Fund history
The labour-sponsored Crocus Fund — designed to raise capital to support Manitoba companies — stopped trading in 2004, after nearly 12 years of activity, over serious concerns about share valuation practices.
About 34,000 shareholders invested more than $150 million in the fund before Crocus stopped trading. Investigations by the auditor general and RCMP followed, eventually leading to a successful class-action lawsuit against the province.
The collapse of the fund led the courts to appoint Deloitte as the receiver in 2005.
The accounting firm was charged with recovering and distributing what was left of the fund back to investors — at the time, about $64 million invested across 46 companies.
A lengthy legal stalemate with the hotel chain Canad Inns was finally resolved in 2019, which paved the way for the final payout.
As of Dec 31, the receiver resolved its operations related to all 46 of the original companies in which the fund held assets. In total, $65.7 million was recovered by the receiver.
Timeline of key events
July 1991
The Crocus Investment Fund is established with the adoption of the the Manitoba Employee Ownership Fund Corporation and Consequential Amendments Act.
January 1993
The fund first sells common shares to the public.
December 2004
Trading is halted over concerns about the valuation of its shares, trading at $10.45 per share at the time. More than 30,000 Manitobans are invested in the fund at this point.
April 2005
The fund drops the value of its shares to just below $7, almost a third less than their value when trading was halted. The devaluation amounts to a $46-million decrease in the fund’s net asset value.
May 2005
Manitoba’s auditor general releases a scathing report, accusing senior managers of the fund of mismanagement and misrepresentations.
June 2005
Deloitte becomes the court-appointed receiver charged with salvaging whatever value is left in the portfolio. RCMP launch an investigation into the events that led to the collapse.
July 2005
A group of Crocus investors file a $200-million lawsuit, citing the auditor general’s report as the basis for the statement of claim.
July 2008
RCMP say there was no evidence the collapse of the fund was caused by criminal misconduct. No charges are laid.
September 2009
The receiver makes a first distribution of recovered funds to shareholders worth $54.7 million. Shareholders receive another $6.8 million payout as a result of a class-action settlement.
December 2011
The receiver makes a second distribution of recovered funds to shareholders worth $9 million.
November 2014
The receiver takes Canad Inns to court, in hopes of dissolving and liquidating the hotel chain’s parent company to recover its investment.
December 2014
The receiver makes a third distribution to shareholders of recovered funds worth $8.6 million. Shareholders also receive a $700,000 payout as a result of another class-action settlement.
November 2019
The lengthy court battle with Canad Inns comes to an end. The courts compelled the hotel franchise to buy back its shares in the fund for $4 million, less than the original principal investment.
January 2022
The courts approve a final wind-down plan, with an anticipated $5.2 million final payout to shareholders.
September 2022
The proposed deadline for shareholders to claim their entitlement in the fund. Once complete, the receiver will be discharged of its duties and the Crocus Investment Fund will cease to exist.
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
