When the whole CEF crisis became public in Jan 2015, the opening claim was that CEF was experiencing a “cash flow shortage” wherein CEF could not get enough money to meet the requests for withdrawal that they were receiving. As a result of that alleged shortage they entered CCAA protection which is short-hand for “The Companies’ Creditors Arrangement Act.” CCAA protection was created to allow financially troubled corporations the opportunity to restructure their affairs under court supervision and provide the creditors with input into how the company and its debts will be restructured.
For CEF and DIL CCAA protection also meant stopping anyone from filing a lawsuit against any person or company involved in CEF / DIL.
After nearly three years of work the Monitor is satisfied that the restructuring of District / CEF and DIL has been completed such that their respective Representative Actions could proceed. Accordingly, on Oct 26, 2017 the courts lifted the stay preventing the Representative Actions from moving forward.
What is a Representative Action? It’s a legal action in which one or a few members of a class sue on behalf of themselves and other members of the same class; a lawsuit brought by the stockholders of a corporation, on its behalf, for the enforcement of a corporate right.
In CEF and DIL’s case the “class” is composed of depositors that experienced a loss from CEF’s collapse, and the corporate right was the fiduciary duty each depositor was owed when they trusted CEF with their deposits. The intention of a Representative Action is to recover funds from the people and companies that contributed to the CEF / DIL implosion and return it to the affected depositors.
This phase of the process also means that people will be compelled to answer questions under oath and the usual tricks and tactics you see in church politics won’t cut it in a court of law. It is my hope that one of the results of this action is that answers that haven’t been forthcoming from the corporate church (cough cough ABC Task Force disbanded cough cough) may be brought to the light of day by the working of the ministers of God in the form of the secular authorities that He has instituted.
Submission to the Authorities
Let every person be subject to the governing authorities. For there is no authority except from God, and those that exist have been instituted by God. Therefore whoever resists the authorities resists what God has appointed, and those who resist will incur judgment. For rulers are not a terror to good conduct, but to bad. Would you have no fear of the one who is in authority? Then do what is good, and you will receive his approval, for he is God’s servant for your good. But if you do wrong, be afraid, for he does not bear the sword in vain. For he is the servant of God, an avenger who carries out God’s wrath on the wrongdoer. Therefore one must be in subjection, not only to avoid God’s wrath but also for the sake of conscience. For because of this you also pay taxes, for the authorities are ministers of God, attending to this very thing. Romans 13:1-6
Postscript #1:
- Sola Gratia has some commentary on the lawsuit here.
- The Statement of Claim is here.
- Filed Affidavit of M. Huber – Mar 3 2016 (this one is long and detailed)
ANO / Lutheran Watch 