Information Session Notes

June 15, 2013 01:00 PM

Location: St. Demetrios Church/Polymenakion Cultural Centre - Toronto
Start Time: 1:00 PM
Description:


Virgin Mary Congregation Meeting

June 12, 2013




OVERVIEW 
   • Where we were...
        – History as of June 2010
        – Recap of last 3 months
   • Where we are today...
        – Cash Flow
        – Status of Loan
   • Where we have to go...
        – Options moving forward
        – Immediate Needs, Short Term and Long Term


Where we were…

June 7, 2010

   • Cash on Hand                         $ 2,555
   • Accounts Payable                   $1,826,945
        - $212,268 Payroll and Source Deductions
        - $242,000 Metropolis
        - $100,000 Banquet Halls
        - $ 40,000 Utilities

   • Bank Debt                               $9,673,871
   Total Liabilities                         $11,499,818
   Monthly Debt Payments         $80,000

History
June 2010
   Our Greek Community was losing almost
$200,000 per month.
By December 2010
   Bank obligations are increased from
$80,000 per month to $100,000

Hellenic Cultural Centre
   • Cost of Construction incl. capitalized interest $13,241,619
   • Sold for        $ 4,800,000
   • Net Loss         $ 8,441,619
         Scotia took everything !!!
   • All that was left for the Greek Community
        – $1,415,761 of HCC Debt
        – $511,000 in trades payables

Emergency Payments
April 1, 2013 to May 31, 2013

In order to keep operations going during Easter, the Greek Community was required to pay out $303,666.50 in emergency funds over a 60-day period.

Cash Flow from GCT Operations as per Audited Financial Statements
2009        ($496,996)
2010         $399,228
2011         $594,052
2012         $376,146 (January to August)
Represents Net Cash made from GCT Donations/Churches/Festival/Cultural, etc.

THE GOOD NEWS !!!!
• For Fiscal 2013–The Greek Community is on track to have EBITA around $600K+
EBITAEarning Before Interest, Taxes and Amortization
• GCT payroll has decreased from 43% of revenue to 35%

Click to see chart



Where we are Today...
   • Accounts Payable                                     $926,519
        • Payroll & Source Deductions for 3 months
             included about total about $200,000

   • Demand of Scotia Bank Loan                 $5,451,900
        • Due August 3 , 2013!!
        Total Debt                                              $6,378,419
        The Past Accounts Payables are crippling us !!


The Truth About Churches
   • If the Greek Community is to survive, the myth about the churches always making a profit must stop
   • Reality: Most of the expenses of running a church are higher than the revenue that the GCT gets back

(In 000's)










Where we need to go...

Options

1. By August 3rd, if monies cannot be raised topay debt:
   • The current bank loan agreement expires
   • Greek Community may lose its charitable tax status
   • Greek Community may fall under "Receivership" = Bankruptcy
   • Bank would then appoint a "Trustee" to takeover the management of all assets

2. Before August 3rd, if monies cannot be raised to pay debt:
   • The Board can re-motion its options to address its debt management, including “Structured Receivership”
   • Board Members may have to appoint a “Trustee” to oversee the management of all of its assets
   • This is may also trigger the loss of the Greek Community’s charitable tax status

3. Assistance from the Greek Community Members / Church Parish Members
   • Donations & Solutions to keep churches within Greek Community
   • Future Meetings with General Congregations of St. Demetrios, St. John’s, and St. Irene’s within the next two weeks
   • Amount required to take care of Accounts Payable = $350,000

4. Sale of Three (3) Houses around Virgin Mary Church IMMEDIATELY
   • 116 Sorauren Avenue
   • 118 Sorauren Avenue
   • 63 Galley Avenue
  > NO PARKING WILL BE LOST or RIGHT OF WAY




Member Price: $0.00
Non-Member Price: $0.00

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