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On July 25, 1997, the Ontario Court of Justice (General Division) (the “Court") granted an order pursuant to provisions of the CCAA (the “Initial Order"), and Deloitte Restructuring Inc. (formerly Deloitte & Touche Inc.) (“Deloitte") was appointed as Monitor of Gandalf Technologies Inc. (“GTI") and Gandalf Canada Ltd. (“GCL").

On October 3, 1997, plans of arrangement for GTI and GCL (the “GTI Plan" and the “GCL Plan") were filed with the Court. On November 12, 1997, the Court approved amendments to each of the GTI Plan and the GCL Plan that provided for an additional class of creditors.

Meetings of creditors were then held on November 14, 1997 during which, among other things, the creditors unanimously approved both the amended GTI Plan and the amended GCL Plan.  On November 21, 1997, the Court issued an order sanctioning the amended GTI and GCL Plans.

As Monitor of GTI, the parent company of Gandalf Systems Corporation (“GSC"), the Monitor also had an interest in addressing any outstanding GSC claims. GTI was GSC's sole shareholder and largest creditor. Some time ago a number of former GSC employees commenced legal action against GSC, which if successful, would likely have resulted in a bankruptcy of GSC.  As GTI was the largest creditor of GSC, it would have received, on a pro rata distribution basis, the majority of any dividends issued to unsecured creditors. The Monitor negotiated an agreement with all creditors of GSC, wherein GTI would not make a claim against GSC, and thereby not share in any dividends. In exchange, the creditors of GSC agreed not to pursue legal action against GSC or GTI.  Pursuant to the agreement, GSC creditors therefore participate in any dividends distributed on the same basis as the creditors of GTI and GSC.

In addition, an Employee Retention Plan was established to provide an incentive to employees to continue working for the Gandalf companies during the restructurings. Eligible employees received a total of US$5,500 (or Canadian dollar equivalent) and payments were made in each of December 1997, July 1998, and October 2015.

In November 1999, GTI and GCL creditors received an initial distribution of 20% on their claim.   GSC creditors received an initial distribution of 20% in March 2001.

The CCAA administration of GTI, GCL and GSC is now complete, with the exception of the final distribution to creditors (both employees and trade creditors).  In the summer of 2021, the Monitor distributed the final dividend to those employees and trade creditors that it was able to locate.

If you did not receive a cheque in the summer of 2021, please contact the Monitor at christow@deloitte.ca to see if you are entitled to a distribution.​

​Catherine Hristow

christow@deloitte.ca