Project/Necessary changes in involvement in EcoReality
Project ID: 136
To smoothly transition people from the current irreconcilable differences among those invested in EcoReality.
July 2010: an investor came forward who was willing to cover about 56% of EcoReality's long-term debt, so we could continue operations and future plans. The directors agreed to seek financing on the balance.
October 2010: together with that new investor, we crafted a business plan in order to qualify for a loan on the balance of our long-term debt. At that time, we assessed EcoReality's finances, and agreed that we had about one year to either make the business plan work, or once again face financial crisis.
October 2011: for various reasons, largely due to differing work-styles, the past year has not seen successful implementation of the business plan, showing a net loss for the year. The members and three major investors have all been made aware of this situation.
November 2011: we are now at a point where EcoReality can no longer service our debt from co-op operations, forcing us to assess site occupants rental fees in order to service debt.
January 2012: The three biggest investors agree this is a matter of irreconcilable differences, and seek one of the following solutions:
- Someone buy out their full interest in the co-op,
- Someone buy out the other investor's full interest in the co-op,
- Put the co-op assets up for sale once again, in preparation for dissolving the co-op and paying out proceeds to debt holders and investors.
If we cannot agree on one of these approaches, an unpalatable fourth alternative will occur: foreclosure and forced liquidation of EcoReality assets.
Minutes:20120125: resolution to allow transfer of investment shares upon board approval.
- 2011-10-10: Jan verbally informed Ron of the financial situation, and outlined what he saw as the three alternatives cited above.
- 2011-10-24: EcoReality retains solicitor Henley-Walden of Sidney to oversee the proper execution of alternatives cited above.
- 2011-11-29: vote to approve liquidation of EcoReality assets was defeated by one investor, meaning alternative #3 is not viable unless that investor changes his mind.
- 2012-01-06: notification of request to allow transfer of investment shares with approval of Directors.
- 2012-03-17: white house rental ads placed on:
- 2012-06-01: white house successfully occupied by Geo Morrow.
Goal or deliverable
- Implementation of one of the three alternatives cited above, such that
- the solution is legally not challengeable,
- in the case of alternative #1 or #2, the intention is that the parties eventually recoup their full investment.
- Implementation to take place in the first half of 2012.
Timeline, schedule, or end date
- 2011-10-10: project started.
- 2011-11-29: obtain approval for alternative #3.
- 2011-12-23: vetting of coop rules in order to implement alternative #1 or #2.
- 2011-12-30: notice of any required special resolutions delivered.
- 2012-01-25: special resolution election meeting.
- 2012-01-26: submission of any required changes to coop rules.
- ... and then a miracle occurs...
- 2012-06-30: implementation of one of the three alternatives above.
- Inform stakeholders of the situation. DONE
- Retain legal counsel. DONE
- Seek initial approval for alternative #3, so it doesn't need to happen later in a panic. DEFEATED
- Seek approval of three members/directors and the three biggest investors for this plan. DONE
- Make necessary changes to coop rules in order to implement alternative #1 or #2. DONE
- Seek investors needed to implement alternative #1 or #2. IN PROCESS
This project is not expected to incur any compensated labour expense. The following is provided for planning purposes only, to show how much less labour is available for other co-op business.
|Meetings, Phone, Correspondence||200|
"Vehicles" with no odometer, such as tractors or stationary equipment, are in tenths of an hour, rather than kilometres.
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