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Email this12:11 am
December 12, 2009
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Loonie said
So, if purchaser could avoid being responsible for lawsuits, why do you think they'd be crazy to buy it at any price? It seems that a credit union has agreed to do so.
Since it's an acquisition, not a merger, I don't imagine it will require a membershi meeting to ratify. Would you agree?
I don't see any mention in the Alterna press release they agreed to assume non-regulated deposit liabilities. The purchase price paid to Pace Credit Union will likely go in to a court-administered trust fund to partially settle the outstanding liabilities of Pace. Alterna is likely buying (a) the assets (i.e., the loan and investment books of business) and (b) assuming the regulated deposit liabilities.
Cheers,
Doug
12:15 am
December 12, 2009
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Loonie said
I was actually wondering if the purchasing CU would require a membership ratification. The fact that Pace is under Administration would, I think, remove that capacity from its members? They aren't having an AGM either as Admin is not accountable to them.Membership fees are usually quite small, between $1 and 100, but they do vary. I would think it would be fair to transfer the membership to the new CU along with the fee already paid, but that may not work legally or bureaucratically.
Unlikely. The FSRA has the authority to override any existing CU bylaws, particularly in CU wind up situations like this.
This is a CU failure, full stop. It's just a CU failure with a resolution that avoids the credit union deposit insurance scheme having to pay out, as Alterna is assuming all deposits.
Cheers,
Doug
11:59 am
March 30, 2017
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Recd official email from Pace CU saying any investment shares are essentially "worthless" at this point, unless funds can be extracted from the lawsuit etc against the former management
.
2:18 pm
March 15, 2019
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savemoresaveoften said
Recd official email from Pace CU saying any investment shares are essentially "worthless" at this point, unless funds can be extracted from the lawsuit etc against the former management
.
Did that email go to all members?
5:53 pm
March 30, 2017
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COIN said
Did that email go to all members?
maybe only to investment member ? I cut and paste below.
"
On April 21, 2022, Ontario’s Financial Services Regulatory Authority (FSRA) wrote to you to inform you that a transaction would be announced shortly and to provide the rationale for that transaction. As you now know, most of PACE’s assets have been purchased by Alterna Savings & Credit Union (Alterna Savings) in exchange for Alterna Savings:
• assuming all liabilities related to those assets;
• offering all PACE staff employment; and
• providing all PACE members with fully paid membership in Alterna Savings with full financial services.
This is good news for all members and employees of PACE. It provides a strong and stable place for PACE members to continue to receive credit union membership and financial services while also maintaining familiar places and faces for members to continue to conduct their financial activities.
FSRA went on to address the fact that holdings of PACE investment, profit and member shares will remain in the PACE legal entity and that these shares will be dealt with as part of the eventual wind-up process of that legal entity.
It is important to note that there are assets and potential expected recoveries from the litigation being pursued against former PACE management and the Board which will remain with the PACE legal entity. The wind-up process will involve realizing the value of assets and recoveries and paying out funds to creditors and shareholders in their order of priority as determined by applicable law. Due to the uncertainty in the value of some assets and the outcome of the legal actions being pursued, no value can be placed on these shares at this time.
If you require any other information about your investment, profit, or membership shares, please contact FSRA on 416-250-7250 or 1-800-668-0128. You can also email FSRA at contactcentre@fsrao.ca.
Regards,
David Finnie
CEO"
1:20 am
October 21, 2013
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There is, I suppose, a faint hope of recovering some more money from assets, but it also sounds like it could easily be eaten up in legal fees.
I wouldn't hold my breath, but you might get a surprise cheque a few years down the road.
3:55 am
March 30, 2017
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Loonie said
There is, I suppose, a faint hope of recovering some more money from assets, but it also sounds like it could easily be eaten up in legal fees.I wouldn't hold my breath, but you might get a surprise cheque a few years down the road.
Prob similar amount as the Microsoft lawsuit settlement…
If lucky 10-20 cents on the dollar.
5:04 am
July 2, 2020
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No worries..... if the legal fees don't eat up the left-overs, no doubt the FSRA Management fees, will.
It's a shame David Finnie's letter didn't provide more disclosure. a.k.a. Mark White and a non-stop FSRA Management fee bill in the millions will be paid before we see a dime.
But never say never, my heirs might see $1 or $2. I won't be around that long.
9:50 am
March 15, 2019
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This is weird. I got an email purportedly from Pace Credit Union inviting me to visit their branch and meet their staff. I thought Pace died a few weeks ago. Is this like Phoenix rising from the ashes?
10:25 am
April 6, 2013
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PACE CU never died. It will be around, a shell of its former self, spending its final years litigating against the former PACE management and board.
Are you sure the e-mail wasn't from Alterna CU, the new owner of your former PACE CU branch?
1:36 pm
March 30, 2017
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Norman1 said
PACE CU never died. It will be around, a shell of its former self, spending its final years litigating against the former PACE management and board.Are you sure the e-mail wasn't from Alterna CU, the new owner of your former PACE CU branch?
It’s 100% PACE CU letterhead, logo and all, from Pacecu.com
1:38 pm
October 27, 2013
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FWIW, it could also be Alterna is still using the PACE email server and address list until such time their IT folks can roll it over into their operation. That happens in a lot of corporate mergers too for some time after closing of an acquisition.
4:05 pm
April 6, 2013
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The acquisition may not have closed yet and the PACE branches are still with PACE CU.
The April 22 announcement said the transaction will be closing in Q2 of this year.
5:40 pm
March 15, 2019
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The April 22 announcement said the transaction will be closing in Q2 of this year.
We're almost at the end of Q2 now.
Am I the only one who received this email?
6:08 pm
October 27, 2013
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COIN said
We're almost at the end of Q2 now.Am I the only one who received this email?
Do you own any of the preference (investment) shares that are now worthless? If so, it may be a targeted email to those owners specifically.
6:33 pm
March 15, 2019
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AltaRed said
Do you own any of the preference (investment) shares that are now worthless? If so, it may be a targeted email to those owners specifically.
Sadly, I own something call "equity shares". I think back in the day one had to pay to be a "member" of the credit union before being allowed to do business with them.
Never bought any of those "preferred shares".
7:21 pm
May 24, 2016
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I received the same email from PACE - and trashed it! I have 3 cents in my savings account. I didn’t have to pay anything to become a member - in fact quite the reverse. They ‘deposited’ $175 in Equity shares which was to become mine outright if I kept the account open for 5 years, plus I received a $100 gift card. My 5 years will be up in about 14 months - but I’m not expecting to receive anything! The $100 was nice, however
8:25 am
March 15, 2019
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JenE said
I received the same email from PACE - and trashed it! I have 3 cents in my savings account. I didn’t have to pay anything to become a member - in fact quite the reverse. They ‘deposited’ $175 in Equity shares which was to become mine outright if I kept the account open for 5 years, plus I received a $100 gift card. My 5 years will be up in about 14 months - but I’m not expecting to receive anything! The $100 was nice, however
My guess is that the PACE corpus will continue as a living entity under new management.
Maybe I will drop into the branch just to take a look.
4:49 pm
March 30, 2017
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JenE said
I received the same email from PACE - and trashed it! I have 3 cents in my savings account. I didn’t have to pay anything to become a member - in fact quite the reverse. They ‘deposited’ $175 in Equity shares which was to become mine outright if I kept the account open for 5 years, plus I received a $100 gift card. My 5 years will be up in about 14 months - but I’m not expecting to receive anything! The $100 was nice, however
Similar here as I would haven able to cash out if they last another year.Threw them a bone for $2k at the time and maybe got back $500. So net I will be down $1500. There goes my new set of irons….
6:49 pm
March 15, 2019
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The PACE website is still up and running and promoting their business and still offering GIC's.
"Redeemable(Min $ 1,000) (includes RRSP, TFSA, RRIF) (Rates effective 2022-05-13) Rates
1 Year 2.85%
2 Years 3.05%
3 Years 3.35%
4 Years 3.60%
5 Years 3.75%
*Rates are subject to change without notice at any time. Offer may change or be withdrawn at any time without notice. Other conditions and restrictions apply.
ONLINE BANKINGEXPAND/COLLAPSE
ONLINE
Applying to become a member only takes a few minutes!
BECOME A MEMBER
IN PERSON
Book an appointment and talk to a specialist at a PACE location near you.
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