The Solidarity Fund “is not afraid of losing money” due to the difficulties of Groupe Sélection, assures the president and chief executive officer of the labor fund, Janie C. Béïque.
The Solidarity Fund is a partner of the seniors’ residence operator in three real estate development projects. “It’s a completely different dynamic [de celle des actionnaires ou des créanciers], she explains during a press scrum on Monday, on the sidelines of a speech before the Canadian Club of Montreal. These are very promising projects. If they’re not there [Groupe Sélection], there is someone else who will take their place. We are very confident. »
Mme Béïque says that the fund has already seen that these projects are attracting interest from investors. “Already the phone rang. There are people who told us: “if they are not there, we will take their place”. »
Groupe Sélection filed for protection under the Companies’ Creditors Arrangement Act (CCAA) on November 14th. Its bankers, to whom the company owes 272 million, claim to have lost confidence in the management team.
Testimony before the Superior Court of Quebec revealed that the company had been in default of payment with partners, in particular the Fonds de solidarité FTQ, because it was unable to honor a call for funds from 1.8 million.
The FTQ fund would also have paid 2 million to Groupe Sélection under the condition that the money be used to repay certain debts. The company would have pocketed the money instead, according to the lenders’ petition in court.
“We are not afraid of losing our money, answers Mme Beic. The way it’s structured, there’s someone else who’s going to replace him. So we won’t waste our money. These are very good projects. »
Two goals
During his speech, Mr.me Béïque reiterated the objective, announced last June, that the share of its portfolio linked to sustainable development should reach 12 billion within five years. As of May 31, the Solidarity Fund’s net assets were 17.4 billion.
The fund also wants to convince 100,000 people without a pension plan or with a salary of less than $55,000 to contribute to the Fonds de solidarité FTQ within five years.
The leader is worried about the fate of retirees in Quebec who are poorer than those in other provinces. The average income of Quebec seniors is approximately $9,000 lower than that of Ontario ($40,000 compared to $49,000).
“Thousands of workers not saving enough in a rapidly aging society is a social and financial time bomb,” she warned.
The Solidarity Fund must present its next results on December 23 for the period which includes the months of June to November.