Margosa was a credit union which provided financial products and services to its members, principally the Sri Lankan and South East Asian community in the Greater Toronto Area. Due to liquidity and solvency concerns, Financial Services Regulatory Authority of Ontario ("FSRA" then DICO) issued an Order placing Margosa into administration.
FSRA operated Margosa for several months in order to transition members to other financial institutions. KSV was consulted by FSRA to develop a restructuring process for Margosa and to wind-down its operations. Thereafter, KSV was appointed Licensed Insolvency Trustee of Margosa’s bankrupt estate following the commencement of Margosa’s administration proceedings with FSRA. We realized upon Margosa’s loan portfolio, including numerous accounts that had been recorded as bad debts prior to our appointment. The result of the proceeding was a near-full repayment of creditor claims.