April 2025 – Good news is coming for investors who lost money with the funds managed by the company taken over in April 2021 by the Ontario Securities Commission (CVMO). According to PwC, investors are now expected to recover between 34% and 42% of the more than $2.1 billion under management at that time. This means the final recovery amount could be between $701 million and $880 million.
This article explains the current updates, why payments were delayed, and what investors can expect next.
Summary of the Situation
In April 2021, the Ontario Securities Commission stepped in and placed a company’s managed funds under receivership. The main goal was to protect the investors and recover as much of their money as possible. After a long investigation and legal process, PwC, the court-appointed receiver, estimates that investors will recover up to 42% of their original investments.
The court has now approved the first payment of $321 million. However, the story is far from over, with some important details still being sorted out.
Details About the First Payment
Initially, PwC requested court permission to pay $473 million to individual investors. Later, after resolving some disputes, this amount was adjusted to $491 million.
But there was a big roadblock. A company named Canada Cerieco filed a complaint. They claimed that one of the troubled funds still owed them $213 million, plus additional interest and legal costs. Because of this ongoing legal issue, the court decided not to approve the full payment immediately.
As a result, the amount available for the first payout was reduced by $170 million. This was necessary to ensure enough funds were left to cover any possible future court decisions.
Impact on Investors
The reduction had a big effect on two key groups of investors:
- Former BIF Fund Holders
- Former BIF RSP Fund Holders
Here’s how their payouts changed:
|
Fund Type |
Original Payment Planned |
Payment Now Approved |
|
BIF Fund Investors |
$131 million |
$16 million |
|
BIF RSP Fund Investors |
$66 million |
$10 million |
This drastic reduction shows how unresolved legal disputes can impact even well-planned recovery efforts.
In addition, after carefully reviewing the list of eligible investors, another adjustment was made. The indigenous Bridges investors’ payout dropped slightly by $1 million, from $18 million to $17 million.
At the same time, some money was also taken out from the available liquidity of BIF funds.
Why Were Payouts Delayed?
The main reason for the delay was the lawsuit filed by Canada Cerieco. They argued that the Flag Ships Bed Bridge Fund (BIF) had guaranteed a loan linked to a major real estate project. This project failed, leading to huge losses. Although the court initially rejected their claim, the matter is still pending.
The court was cautious. It didn’t want to risk paying out too much to investors before settling this big legal question. If the court later decides in favor of Canada Cerieco, it could seriously impact the available money for everyone else.
What Happens Next?
Investors can expect more payments in the future once the pending lawsuits are fully resolved. If the court rules against Canada Cerieco, it could free up additional funds for distribution to investors.
PwC has said that after resolving all issues, total recovery could reach between $701 million and $880 million. While this is still far from the full amount originally invested, it is a much better outcome than many feared two years ago.
Key Takeaways for Investors
- First payment of $321 million already approved.
- Final recovery expected between 34% and 42% of original funds.
- Legal disputes can delay or reduce payouts.
- More distributions may come once court cases are fully settled.
Why It Matters
For many investors, especially those relying on these funds for retirement or other life plans, the long wait has been stressful. But the latest updates show clear progress. Investors will recover a significant part of their money, even if not the full amount.
Patience will be key. Court processes are slow, but each step brings investors closer to closure and recovery.