NAFA done

[trapper9260]

For those that ship furs to NAFA they are done . They are out of the wild fur . Just ranch. Here is a write up on it that I found this morning.

What's on T-Man:


This is a summary of Tuesday’s conference call, with the receiving agents from across the US and Canada, with Doug Lawson (CEO) and Rob Cahill (VP). Roughly seventy five percent of NAFA operations is ranch mink and twenty percent is wild fur. There is no separation of monies - all income is in one pot and all expenses are paid from the same pot. Ranch mink operations and unpaid auction purchases have hurt the company.



Here is a summary of that call:

1. NAFA no longer exists as a functioning fur auction operation. SAGA (European Ranch Mink) will now market what used to be NAFA Ranch Mink. NAFA Wild Fur will no longer exists.
2. A skeleton crew will remain in Toronto, Canada and Stoughton, Wisconsin to help with liquidation and closure (1 - 2 years).

3. Employees (outside of that skeleton crew) and receiving agents are terminated November 1, 2019.

4. NAFA's liabilities are with the Canadian Imperial Bank of Commerce (CIBC). The CIBC has financially locked down NAFA and any income goes right to the CIBC. It will continue to do that until their liability with CIBC has been satisfied.

5. In order to reduce their liability, NAFA will liquidate their assets by selling equipment, and real estate. As well as, collect outstanding money owed for purchases at previous sales and collect from ranch mink farmers that are indebted or sell their notes.
6. Once the liability has been satisfied with CIBC, NAFA intends to private treaty the inter-sorted fur in storage. Inter-sorted pelts will not be returned to the shippers. Inter-sorted is what we have at NAFA - the pelt is ticketed, graded, and has become a part of a "lot" containing many more pelts of the same grade. Owners of dealer lots can make arrangements with NAFA to retrieve them.
7. Once NAFA has income without liability, they will establish an order of payment for their debts. First is shippers whose checks, from the August sale (plus any banking fees), that did not clear prior to CIBC freezing NAFA’s accounts after September 17th (see note below). Second is unpaid wages for employees and then commissions and expenses due to receiving agents. Nothing is expected to be paid out to anyone until sometime next year.
9. NAFA said they'll also update shippers via news on their account pages. Apparently, some part of the website will remain in operation.

10. I do not know how the Wild Fur Shippers Council will handle the requests for a pro-rated return of membership dues. Stay tuned.

11. NAFA has plans to resolve these matters; the bankers, lawyers, and courts have their plans too. We will see how it plays out…

Note: If you have a NAFA auction proceeds check that was “returned to maker” or that you have not yet cashed or deposited please notify me. I have no way of knowing, unless you have told me. I will try to provide those of you in this situation updates.
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here is what had gone on
Oct 23, 2019

SAGA FURS AND NORTH AMERICAN FUR AUCTIONS ENTER INTO AN AGREEMENT
To: NAFA Customer

Saga Furs and North American Fur Auctions (NAFA) have today entered into an agreement to work together to secure a stable selling channel for NAFA’s customers both in Europe and North America. Utilizing its strong financial position, Saga Furs will start financing some of NAFA’s fur producing customers with immediate effect. The agreement also contemplates the integration of Saga Furs and NAFA solicitation teams in order to better serve the needs of the fur producing community in both Europe and North America.

With this agreement, Saga Furs and NAFA seek to address recent producer and market concerns as well as to provide fur producers with a solid platform through Saga Furs in which to sell their 2019 production. The combined offering will create the most versatile collection of different fur types, including mink, fox, finnraccoon and wild fur, available in the international market.

Further details about this agreement will be announced as they are finalized.


Sincerely,
Douglas Lawson
President & CEO
North American Fur Auctions

Oct 19, 2019

MESSAGE FROM THE PRESIDENT & CEO, 19 OCTOBER, 2019
To: NAFA Customer

As you know from previous communications, NAFA has been, for many weeks, working towards a refinancing of the Company with a new lending syndicate that we hoped and expected would be in place by Thursday, October 17th. Unfortunately and most regrettably, despite our best efforts, this new financing has now fallen through. There are a variety of reasons for this, none of which are important at this point in time.

Consequently, NAFA’s Senior Management is currently pursing other strategic options in order to preserve NAFA’s business in some form so that it can continue to satisfy the needs of our customers, both buyers and consignors, employees and other stakeholders.

We greatly appreciate the support and patience of our customers during these difficult times. Obviously, after expending so much effort in recent times to preserve NAFA as we have come to know it, we are deeply sorry to have to be in this position. Nevertheless, we continue to work hard to secure the best possible future for the Company, our customers and the trade.

We will announce further details as they develop over the coming days.


Sincerely,

Douglas Lawson
President & CEO

[472x1B/A]

This is too bad for the fur industry and trappers as well. I received an E-mail from my fur route pick up guy in regards to this matter. There will be a lot of people lose their jobs from this decision.

[trapper9260]

Here is more on this

https://mailchi.mp/1826a83db276/lett...5?e=143b650a1f

November 4, 2019

Dear NAFA Customer,

On October 31, 2019, North American Fur Auctions (NAFA) sought and was granted creditor protection under the Companies’ Creditors Arrangement Act (CCAA) by the Ontario Superior Court of Justice. Although different in many technical respects, a CCAA proceeding is akin to U.S. procedure under Chapter 11 of the US Bankruptcy Code.

Companies that have filed for CCAA protection in the past include Air Canada and Stelco (the Steel Company of Canada). A CCAA Filing is NOT a bankruptcy and is NOT a receivership. NAFA management is currently operating the business.

NAFA’s tremendously difficult decision to enter into CCAA follows a number of months of struggle and hard work of trying to refinance the Company. NAFA has been unable to negotiate a final comprehensive refinancing deal, thereby leading to the CCAA protection filing.

The CCAA procedure gives us the breathing room and the operational ability that we need to decide on next steps. In the immediate future, NAFA is proceeding to complete the sale of its ranched mink loan portfolio to Saga Furs. Thereafter we intend to organize the proper and appropriate disposition or return of all furs held by NAFA and to consider future options within the context of the CCAA proceeding. At this time, it is unlikely that NAFA will conduct its own auction in March 2020 for either wild or ranched fur.

In accordance with the CCAA filing, the court-appointed monitor, Deloitte Restructuring Inc. (Deloitte), who provides oversight, will initiate a mailer to all Company creditors in the coming week. The CCAA Court order of October 31 prevents the Company from making payments to creditors that were outstanding prior to the time of filing. Depending on the outcome of the restructuring, a claims process may be administered that will address what will be paid for these pre-October 31 liabilities. There is no set timeline for this process.

If you wish to obtain more information from the Monitor, Deloitte has set up a website that makes available relevant Court documents. The address is https://www.insolvencies.deloitte.ca/en-ca/nafa. Deloitte will also be setting up a phone hotline and email address should you wish to obtain information from them directly. Both will be posted on the Monitor’s website once operational, which is expected in the next day or two.

More details will be released in the coming days and weeks. We appreciate your patience in this trying time for the company, its customers and stakeholders.


Sincerely,


Douglas Lawson
President & CEO
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