MGI owes creditors $12.7 million!
Well, if it wasn't your pension at stake, the way CCWIPP invests your money would have us doubled over slappin' our knees in hysterics.
If it isn't pouring money into bankrupt hotels it's pumping $5 million into a failing company with only $635 thousand in assets --and Receiver General for Canada will get $50 thousand of that.
What's really sick, is the 300 or so UFCW members who worked at this bankrupt company weren't even listed a creditors. As of late july, they hadn't seen even a dime of severence money. We wonder what criteria CCWIPP uses when it decides which of it's bargaining unit operations it will sink money into.
Anyway, read this article and weep.
http://www.meatfacility.com/
quote:
Indusite Realty Corporation ("Indusite"} has been retained on an exclusive basis by Continental Trading Company Inc., Maple Freezers Inc., Muller's Meats Limited and Mintz & Partners Limited, in its capacity as Receiver of MGI Packers Inc., ("Vendors"} , to act as their advisor and exclusive agent in connection with the proposed sale of the land, buildings and equipment located at 305 Arnold Street ("Arnold Street Abattoir"} and 352 Maple Street ("Maple Cold Storage"} in Kitchener, Ontario, Canada (both properties together are hereinafter referred to as the "Facility."} . All assets are being offered strictly on an "as is, where is" basis, as described more fully later in this document
quote:
MGI's largest unsecured creditors are Mueller Meats and Maple Freezers.
Mueller Meats, a company owned by the Muller family, MGI's largest shareholder, is owed $703,459
Someone help me out here!
Who owns what and who loses what?
(ed=unwanted smilies)
[ 09-10-2001: Message edited by: siggy ]
Creditors are people and organizations to whom the bankrupt company owes money. In this case there are secured and unsecured creditors. Secured creditors are those to whom the company "put something up" in exchange for their loans (like when you go to the bank to take out a mortage to buy a house - the house is the "security" - if you default on the mortgage, the bank - the creditor - takes the house to recover the money it loaned you). Unsecured creditors are those to whom the company owes money but that do not have a "security". Suppliers with unpaid invoices for goods and services often fall into this category.
IF Propco (beneficially owed by the CCWIPP) is one of 3 secured creditors in this case. Presumably, they will be able to recover their money based on whatever it was the bankrupt company put up as security. This could be the proceeds of the sale of the property or something like that. The unsecured creditors get whatever is left over after the creditors have got theirs (if there's anything left). If the government is owed money, which it is in this case, it goes first.
In this case, the pickings are going to be lean. From the looks of it, the company only has $625,000 in assets and the gov't will take about $50,000 of that. Workers owed severance, vacation pay and other payments don't even figure in this equation.
Whatever the company put up for the $5 mil it got from IF Propco, and assuming that this money is recoverable, this turn of events raises a lot questions about whether this is a "prudent" use of workers' pension funds.
There was an article on this site earlier iin the year that explored this issue in some depth. It may be a good time to revisit. http://www.ufcw.net/articles/docs/opportunity%20knocks.html
[ 09-11-2001: Message edited by: remote viewer ]
I.F. Propco 49? That would imply that there are many, many of these I.F. Propco's. There are over 50 in Ontario alone, in fact. One wonders how many millions have flowed through this channel and into what enterprises. One must find out.
The Canadian Commercial Workers Industry Pension Plan (CCWIPP) was supposed to file its financial statements last June, but they couldn't get them in until the end of August. That's okay 'cause the members expect them to be accurate.
What's strange about the CCWIPP filing for the year 2001 is that MGI went kaput in 2001, but the CCWIPP statement shows that the 2001 "Cost" of MGI Meatpackers Inc. Kitchener mortgage/debenture as $5 million and the "Fair Value" for 2001 as being $5 million.
We know that the $5 million is gone because MGI only had about $600 thousand in assets.
I'm no accountant, but wouldn't the books show $5 million more than really exists?
Ask Cliff about Purely Supreme Foods and the $20,000,000. While you're at it, ask him about the ownership of and big losses at Seak King Fisheries in Newfoundland.
You might want to ask Cliff about Tamir Fishman Ventures II. Ask him how the investment is going.
quote:
At the time Tamir Fishman Ventures II aimed at raising a total of $150 million from private investors, and up to an additional $50 million through the floatation of Tamir Fishman Ventures II Ltd. on the Tel Aviv Stock Exchange ("TASE"). Then IHTIR wrote that "the new fund's value should benefit from making investments at lower price levels than at the outset of 2000 when deals were high priced at a premium over current levels". However, two years later, our positive expectations had not been realized. Israel's business daily wrote recently " Institutional investors, including Ilanot Batucha, (Ilanot Betucha is the largest investment house in Israel), have claimed in the past that there is no justification for the existence of a fund that sits on NIS 167 million ($34 million at current rates of exchange) in cash, with investments only in 11 portfolio companies that amount to just a few million dollars. The money is therefore not invested as venture capital at all, but managed by Tamir Fishman's management company, which draws NIS 5.5 million in annual
I think in general it's time for better accounting practices and reporting. William S. Lerach writes about An Alarming Decline in the Quality of Financial Reporting.
quote:
I often think of a cartoon I saw several years ago. Two prisoners in their striped suits are in a jail cell, one on his bund and the other one standing and saying: 'You know, those Generally Accepted Accounting Principles weren't quite as generally accepted as I thought.' Corporate executives ought to keep in mind the old Biblical admonition: 'What would it benefit a man to gain the whole world and lose his own soul?' - or might I add - 'even his own freedom.'
With all the stock boosting practices aimed at making assets look larger than reality, reported in the national and international media, we all want some comfort that our investments and retirement income is safe and reports of its worth are accurate.
Should we really have to ask anyone? Shouldn't we be able to figure out value and performance just by reading a financial statement?
Corporate guys or Union guys, greed affects them all the same way.
Ex-General President Bill Wynn was left on the ULLICO board after his retirement, I wonder if he got any of the shares. He had to die before they would remove him from the board.
That brings up another point....
Why the hell don't these buggers just fade? Bill Wynn hangs onto benefits positions, Bernie Christophe says he's hanging on to benefits funds after he retires and Cliff Evans is like the Engergizer Bunny, he just won't go away.
Is there something more attractive to these benefits positions that I'm getting? Are these guys altruistic volunteers or do they get money for hanging around and sitting on these funds?
I've noticed a lot of activity in Newfoundland. IF Propco (Ontario) 47 seems to hold a 30% stake in Sea King Fisheries, and they paid nearly $4.5 million. I'm sad to report that they report that investment is worth $358 thousand as of one year ago.
How come everytime a stinky deal comes along, this guy's compaies are involved?
quote:
Ex-priest invests in the Rock
The Halifax Daily News, August 23, 1998, Daily Edition, p.38.
St-John's; Newfoundland
A disgraced former Roman Catholic priest who went on to become one of Canada's top real estate developers is investing millions of dollars in Newfoundland.
Ronald Kelly, 54, who pleaded guilty to sexually abusing five boys in an outport parish almost 20 years ago, said it's because he wants to help the have-not province get ahead.
'I'm from Newfoundland, I employ Newfoundland employees and I have always done everything I could, me and my family, to support Newfoundland,' he said.
'I feel bad obviously about the past, but life goes on and I do my best.'
His Toronto-based company RHK Capital Inc., and a subsidiary company announced plans last month to spend more than $11.5 million on building a resort hotel in Deer Lake and a shrimp plant on the Northern Peninsula.
Just seven years after leaving the church, Kelly has amassed an empire worth more than $500 million in property in Ontario, Jamacia and the Bahamas.
His property portfolio includes the thriving Galleria Mall in London, Ont., and the famed British Colonial Hotel in Nassau. He has numerous commercial and residential holdings across Ontario in Toronto, London, Hamilton, Peterborough and Ottawa.
In 1979, Kelly pleaded guilty to 10 sexual assaults on five boys, ages 13 to 18, in the Port au Port community of De Grau, Nfld.
What I don't understand is how CCWIPP winds up with 30% of Sea King for close to $5 million when Father Ron picked up 50% for $1.5 million. I'm not an accountant so I may not properly understand this stuff, but if I'm right either somebody got one hell of a deal or somebody got really hosed.
Click here for a government media release.
quote:
RHK Capital Inc. will invest $1.5 million to initiate the renovations for the shellfish operation in exchange for a 50 per cent interest in Sea King Fisheries. Sea King Fisheries, will initially process shrimp at the renovated facility and then expand into crab processing. Premier Tobin first met with RHK Capital Inc. during a recent investment attraction trip to Toronto.
"Government continues to work with private industry in an effort to revitalize our rural communities. Today's announcement of new investment into the Black Duck Cove plant will enable the facility to process a wider range of species resulting in the further diversification of the industry on the Northern coast of the province," said Tobin. "A renewed life for the plant through the processing of value-added products will go a long way towards providing more security and therefore a brighter future for the people of the Black Duck Cove area. It is expected that upwards of 100 people will be employed at the plant for approximately six months on an annual basis." Premier Tobin also noted that RHK Capital's investment is an important economic boost for the Northern Peninsula and that it is the first time the company has invested in the province.
quote:
What I don't understand is how CCWIPP winds up with 30% of Sea King for close to $5 million when Father Ron picked up 50% for $1.5 million. I'm not an accountant so I may not properly understand this stuff, but if I'm right either somebody got one hell of a deal or somebody got really hosed.
Until you understand the true relationship between Ron and Cliff, you won't have an accurate picture of all CCWIPP investments.
From what I've heard, the Financial Services Commission of Ontario is reviewing the CCWIPP financial statements that have recently been filed. If you're a CCWIPP participant, they'd be happy to send you a copy.
If you have any questions about CCWIPP or if you'd like a copy of the CCWIPP financial statement, e-mail Larry Martell, FSCO Pensions Officer at lmartell@fsco.gov.on.ca
This building is owned by CCWIPP and has some interesting tennants associated with CCWIPP
It's called Woodbine Place, and it's located at 135 Queens Plate Drive in Toronto (Rexdale).
quote:
posted by Richard:
quote:
What I don't understand is how CCWIPP winds up with 30% of Sea King for close to $5 million when Father Ron picked up 50% for $1.5 million. I'm not an accountant so I may not properly understand this stuff, but if I'm right either somebody got one hell of a deal or somebody got really hosed.
Until you understand the true relationship between Ron and Cliff, you won't have an accurate picture of all CCWIPP investments.
From what I've heard, the Financial Services Commission of Ontario is reviewing the CCWIPP financial statements that have recently been filed. If you're a CCWIPP participant, they'd be happy to send you a copy.
If you have any questions about CCWIPP or if you'd like a copy of the CCWIPP financial statement, e-mail Larry Martell, FSCO Pensions Officer at lmartell@fsco.gov.on.ca
It should be more like, learn more about the relationship between Cliff and Andrew Lepper. If you can get Tobi Rowe to chat, that would be a good thing too.
Thanks for the tips, we're off and running with them.
BTW, does anybody know whether the CCWIPP financed South Ocean Golf & Beach Resort still holds the lease on the golf course?
Nice property, but the golf course is what adds value.....
We're also looking for information on the CCWIPP financed Pinestone Resort in Haliburton Ont.
How about an RHK Capital Inc. internship?
Intern Profiles
quote:
British Colonial Development (RHK INC)
Name: internal
School: none
Overall Rating: 7
How did you go about getting your internship?
The internship was offered to me due to my expertise in the hotel industry and dealing with closing companies accounts after they have been restructured or bought out. I am from the Bahamas so i was able to get in contact with the Vice-President of Carribean Operation for RHK INC. whose head office is in Ottawa, Canada. She suggested that I take this internship so that I can have something like this under my belt.
What sort of compensation did you receive and were you provided with accommodation?
If not how easy/difficult was it for you to find somewhere to live?
The payment was excellent I recieved $540 a week, plus gas and meal expense. I worked from 8:00 in the morning until 3:00 and some Saturdays.
What were your main duites and responsibilities?
closing their old hotel accounts and opening their new accounts for their $65 million new resort called British Colonial Hilton. I also dealt with the sales office of their conduminium complex that will start construction of 280 condos in December. I also dealt with setting up accounts for their $40 million Financial Centre located in the heart of Nassau. the hotel also had other holdings in the Carribean and I worked with their sales office out of Jamica.
What knowledge did you gain both professionally and personally?
The Vice-President put me under her wing and showed me what running this large company was all about and also showed me how competitive the hotel industry can be. I also knew how to deal with accounts since my major is Marketing and Economics. This was a great experience not just for the traveling, but how many internships are you allowed to go down to an Island on the companies private jet by yourself. It was alot of responsibility but explained and shown what to do I was able to even discuss certian issues and give my view point to the President of RHK INC.
What would you say was the best part of the whole internship for you and why?
I able to visit three of their properties in Jamica (Kingston Hilton), (Comfort Suites Ocho Rios) and (Hyatt Cayman).
I'd like to know (among many other things), how decisions to invest in these properties are arrived at. Why this hotel and not some other hotel? What factors are considered in making these decisions and by whom?
It seems to me that way back in the early 1990's, the UFCW justified these kinds of investments on the basis that they were creating jobs - good union jobs - I think is what UFCW Canada Director Tom Kukovica said. I really want to know, is this still the basis for these hotel industry investments? If so, what kinds of jobs are being created? Who is benefitting the most from these investments? CCWIPP members? The businesses that are getting their money? The middlemen who are brokering the deals? Who?
If it's good enough for RHK Capital it's good enough for CCWIPP. You'll notice that I said RHK Capital and not Ronald Hubert Kelly. It seems that Father Ron has a lot less whack with his company than he used to.
As for the old "creating" good union jobs....fogedaboudit.
I'll bet the Jamaican and Bahamian properties are non union and the Haliburton golf course and resort are non union. It seems the Niagra hotels are union but they are HERE Local 442.
I was surprised to see William M. Mercer Limited doing some consulting for CCWIP. It would be interesting to see what issues Mercer was advising on.
Stay tuned....
So, if the bloom is off the "job creation" rose (and I think that it is - if these kinds of investments were creating good union jobs, I'm sure we'd be hearing at lot more about them), then what is the reason for these investments?
I'm assuming that the trustees of CCWIPP have come to the conclusion that investing in hotels is a good investment strategy - based on an analysis that includes all the relevant considerations. If that is the case, I am curious why RHK or AFM and not some of the other big corporations in the accommodation industry? Are RHK, AFM and whoever else generating a better rate of return? Are they higher or lower risk? It would seem to me that there ought to be some rationale for these decisions that has the members' best interests at heart. I'd like to hear it.
Job Creation! Hell, MGI was a UFCW employer before the money was lent. As for World Heart, their Annual Report boasts that they don't have a Collective Agreement for any of their employees, so it's a good investment.
