A Canadian consumer credit company has over 44,000 loans on its books, totalling about 229 million Canadian dollars. But when the court-appointed takeover visited the company last month, they found only 256 cases, totalling less than 900,000 yuan. Meanwhile, claims held by creditors may exceed 613 million. Cash Today Inc., based in Edmonton, Alberta, reported at the end of last year that there were over 44,000 outstanding loans, totalling about CAD 229 million. Photo: David Bloom
The accounts don’t match
The company is called Cash Today and is headquartered in Edmonton, Alberta. At the end of last year, it reported more than 44,000 outstanding loans. But according to documents submitted to the Alberta King’s Court this Tuesday, the receiver MNP found only 256 records of valid loans. The receiver confirmed about 270 creditors and bondholders. MNP warned that the claim amount of 613 million may be at least 190 million overstated, and stated that the full picture of the company’s assets and debts is still unclear. Note: MNP is a Canadian accounting firm officially named MNP LLP, founded in 1958 and headquartered in Calgary. It has over 120 branches nationwide and is the fifth largest accounting firm in Canada, mainly engaged in auditing, tax, and corporate consulting. The report features its subsidiary, MNP Ltd., which specializes in bankruptcy liquidation and has the largest number of branches among licensed bankruptcy trustees in Canada. This time, the court appointed it as the receiver of Cash Today, responsible for auditing accounts, recovering assets, and giving creditors an explanation. Where did the investors’ money go?
The investigation also focused on how investors’ money was used. Some debt agreements require that the raised funds be placed in a segregated bank account until they are used to purchase the loan portfolio. However, records provided by multiple investors show that the money was transferred into the account of an affiliated company. Cash Today told the receiver that the company had no bank accounts under its name, and bank records confirmed this. MNP said it cannot confirm whether investors’ money is being used as required by the agreement. The boss suddenly passed away, and no one took care of the company anymore
Cash Today was founded in 2005 and offers high-interest consumer loans in Edmonton and Red Deer. The company is controlled by companies associated with Grant Patterson and Cameron Schiffner, who also serve on the boards of several other lending companies. The company did not immediately respond to requests for comment. The receiver learned from the company’s former lawyer that Patterson had died the week of September 21. Schiffner resigned from his board position on October 1. The receiver described the company’s operations as being ignored. The receiver also said the investigation was met with obstacles everywhere. The company’s management refused to meet or video conferences, only agreeing to a written response through the lawyer, who subsequently withdrew from the case.