I didn't see this posted so here goes …………

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January 27, 2020

Dear NAFA Customers, Producers and Supporters:

It has been some time since we last communicated about NAFA’s current circumstances and we wanted to provide an update on all that has been going on with the Company over the last few weeks/months.

It has been an oddly busy time at NAFA with different kinds of priorities than normal, and a whole new regime of rules to adapt to. For those who are interested, there is information about recent activities at NAFA in the public domain that can be accessed through our Monitor’s (Deloitte) web portal at: https://www.insolvencies.deloitte.ca/en-ca/pages/NorthAmericanFurAuctionInc.aspx.

Since entering into the CCAA process on October 31, 2019, our priority, along with the Monitor, is to maximize Company assets in order to service our creditors and to protect consignor and buyer goods in our possession.

During November and December of 2019, NAFA took complete stock of all its assets, developed a plan and protocol to deal with these assets as well as consignor goods on hand. We also began the process of selling a number of our European kit loans to Saga Furs as well as licensing the Blackglama trademark to them for one year. We communicated with our creditors and reported to the court on all of these matters.

Through a number of court hearings, we have managed to achieve some positive results for our consignors and buyers. For one, the Court has declared that consigned pelts are not a NAFA asset, they belong to the consignor. Therefore, they are safe at NAFA from claim by creditors. As a result, the Court has also declared that fully lotted consignor goods can be withdrawn/returned to the consignor, providing the account does not have outstanding balances. In addition, this has allowed us to receive an order from the Court that we can sell consigned merchandise and ensure that the consignor will receive the appropriate proceeds through the Monitor. Please contact NAFA at dealerservices@nafa.ca if you have questions about the return of any pelts that you have at NAFA.

While all of these declarations require strict administrative protocols and processes, they are positive developments and the release of fully lotted consignor goods is now well underway. At the same time, we are exploring the best way to maximize the value for previously offered and unsold merchandise, dealer, or re-consigned goods through Private Treaty and/or selling at auction in some way. More on this will be announced in the near future. However, there will be no attempt to sell goods at vastly discounted prices relative to the actual market.

On January 6, 2020, NAFA closed the sale of its Toronto Distribution Centre. The net proceeds from this building sale, combined with buyer accounts receivable receipts and pelt advances collected under our deal with Saga Furs have been, in large measure, used to pay down the bank debt. The full amount of the bank debt will not likely be paid until after the June auctions (ie., a lot of goods have been slated for this sale period) but from that time on, NAFA should be starting to collect money that can go to helping to satisfy other creditor claims.

So, apart from collecting money, what else is the Company doing? In short, we continue to focus on realizing as much value from the Company assets as possible all while trying to support the trade as best we can in our current condition. NAFA management is also looking at ways that we may continue to provide services to the fur trade. Any further structure is conditional on generating additional value for our creditors and stakeholders. We clearly recognize that it is our primary responsibility to pay off our debts to the fullest extent possible. While this may be a good year to be less active in the fur business according to current market reports, the Company would like to find ways to support our industry going forward if at all possible, but that remains to be seen.

We know that all of NAFA’s latest developments have deeply hurt and disappointed many people as well as many interests throughout the fur trade. I can only say that the Company did all that it could to chart a vastly different path for our business over the last year. While we work our way through this challenging process, the current market conditions will continue to impact our ability to find solid footing. However, if history proves one thing, the fur business is resilient and most players in our industry remain committed to its ongoing success. Therefore, I would say that the story of NAFA is not yet fully written and everyone remaining at the Company will continue to do all that we can to fully satisfy our obligations while, if possible, trying to conceive of a new future for our business.

Best wishes for a successful 2020 season!

Sincerely,


Douglas Lawson
President & CEO

Tty

Blah blah blah, nothing change's around there. Never had any credibility and never will.

I sure miss the kitties I sent up there.

" The full amount of the bank debt will not likely be paid until after the June auctions (ie., a lot of goods have been slated for this sale period) but from that time on, NAFA should be starting to collect money that can go to helping to satisfy other creditor claims. "

What June Auction?

Coonman220 better get his coon sets deployed !!!

"Let the good times roll" !!!!

Wow that would smart...

Why with all the debt they have and still owing money to trappers why are they still paying each other bonuses?

NAFA going to shine again!

Yup, and they weren't my bad ones either.

It SOUNDS as though you can request that they return them.

thanks actor for the heads up. dang it anyways.....

Thats what Corporates do before lights Out!

Auction
(dd)
FHA has agreed in principle to conduct its March auction at NAFA’s Skyway Property from March 24 to 31, 2020, if certain terms are met (the “Auction”);
(ee)
The Applicants and FHA are still negotiating the terms of such Auction but expect to have an agreement in place by the time of the extension hearing;
(ff)
the Auction provides the Applicants an opportunity to sell its wild fur, and its owned or consigned inventory, in order to provide the Applicants with additional liquidity during, or just following the Stay Period;

The latest motion jan 27

is something wrong at ..................ah never mind

Gland I never sold up there

Me too!

Well I did years Ago........

I always did good selling my fur through NAFA. I never had a bounced check and If they rise from the ashes I will sell through them again.

What about Castor ?