By Jennifer Quam

Former McBride Forest Industries employees along with other creditors had their first face-to-face meeting with the trustee in bankruptcy since the mill closed its doors last fall. The meeting was held last Wednesday in McBride at the Elks Hall to provide information regarding the money owed to them.

MFI Trustee, the Bowra Group, met with over 100 creditors to make a proposal on paying out the unsecured creditors. 100% of the creditors voted in favour of the proposal.

Martin Hyatt, Vice President of the Bowra Group, said the sole purpose of the meeting was to allow the creditors to vote for or against the proposal that would pay all the unsecured creditors in full.

Hyatt explained to the crowd that they have in their trust $3.8 million, which they feel is the sufficient amount of money required to pay all unsecured creditors.

“The proposal is unique because you virtually never see one that pays the creditors in full,” said Hyatt. “We will now take this proposal to court in Vancouver tomorrow [last Thursday] to set a date for court proceedings to hopefully approve the plan. When you will get your check is still uncertain at this time. Will it be a week - no, and will it be a year - we hope not.”

Hyatt explained that the timeline depends on whether Carrier Lumber, who officially purchased MFI’s timber license on June 12 will make a legal claim against what they allege was a breach of confidentially on their first offer on the timber license.

“We believe that Carrier feels they may have had to pay more for the license than what they feel it was worth,” said Hyatt.

“It is our position that there was not a breach of confidentially,” said Hyatt. “We are now going to force that issue to see if Carrier does make a legal claim to that effect to see when we can pay people out of the trust.”

In the proposal, Hyatt explained, former MFI employees will be paid $2000 before a 2% tax deduction if they were owed holiday time. Each employee would then be entitled to 12 weeks group severance pay and an additional one-week individual severance for each year work up to a maximum of eight years. Some employees would then be entitled to 20 weeks severance pay, plus possibly holiday pay.

Michele de Leto, a former five-year employee of the mill who recently took employment in Kamloops due to what he said is a lack of work in McBride, calculates he is entitled to close to $17,000.

After the meeting he still felt frustrated that the process doesn’t seem to end.

“Honestly I think I will get my holiday pay but will never see anything else. I won’t be let down this way if I don’t see the severance pay,” he said. “MFI are b@#$%* and left the workers that were making them money out to dry. We are the ones that should be paid out first.”

Fernando Vecchio, a three year MFI employee, thinks he should receive around $13,000.

“I am glad that there seems to some resolution and we are finally going to see some money,” he said. “It is, after all, our money.”

Appointments of Inspectors of the Estate were made at the conclusion of last week’s meeting. These people will, in essence, represent the creditors group as a whole and have direct contact with the Bowra Group. Former MFI employees that stepped forward for the position were Mellany Scales, Paul Hulka, Loranne Martin, and Marty Kelly.

Last Friday from Vancouver, Hyatt said that a court date to present the proposal has not been set but realistically he estimates that date to be held in early July.