BDO Dunwoody summary of activities

Friday August 14th was two weeks since the creditor meeting. There has been ongoing progress on a number of priorities and milestones. This is a summary of the activities since July 30th.

Saint Anne Corporation
This agency has been on hold since the bankruptcy of Imagine Adoption. However, there have been many discussions with families, the authorities and other stakeholders related to Saint Anne. This agency has limited funds and does not have management or a Board in place to continue any operations.

A Director’s meeting was held on August 13th to consider ongoing activity of this agency related to Ecuador adoptions. A voluntary bankruptcy was signed by the one Director, Andrew Morrow, and documents filed with the Office of the Superintendent in Bankruptcy. Notices will be mailed to those creditors and posted on this web site shortly. BDO is the Trustee of that estate.

The Ontario ministry is aware of the bankruptcy. We understand that they are reviewing adoptions from Ecuador and future steps if any. We are waiting for final direction regarding the files. BDO does not anticipate a restructuring of Saint Anne similar to Imagine Adoption because of the limited funds and the files to be managed (approximately 30). However, this will be reviewed and monitored during the coming weeks.

File Transfer Requests
There continues to be the objective of maintaining privacy and security of the family files along with their ability to obtain and/or relocated their file. Since the July 30th meeting, we have received approximately 25 requests for files. We are proceeding to release these files. Please see comments below regarding a restructuring plan should families wish to leave the file with Imagine Adoption pending further reports.

File Status Requests
BDO recognizes the emotional stress given the uncertainty of a family’s adoption status. We have received calls requesting updates if referrals have occurred, where a file is on the list for a referral, if all documents are in the file. We have attempted to respond through Ms. Barber the prior Imagine Adoption employee doing contract work for BDO as Trustee.

The overall status is that the files of no child matches are generally in the same position as at July 14 when the bankruptcy occurred. This would have been as last communicated to families by a case worker of Imagine Adoption. The continuation of the process will occur after an approved restructuring plan is in place (see below).

Concluded placements from transition home in Ethiopia
The paperwork, placements and travel home for children continues to proceed for children who were in the transition home at July 14th. The transition home costs continue to be funded with the Yamana Gold gift.

The following is the current status of the placements for these children since July 14th.

Travelled Home = 16
Ready to Travel Home by Sept 1 = 18
Waiting Visas – travel expected after Sept. 1 = 3
Court date in August = 1
Court date in October = 5
Children for other Orphanages = 3Additional Child located matched for Court process in October = 1
Total = 47

BDO ensures well being of children in transition home
A short-term priority for BDO, as Trustee, continues to be the care of the children in the transition home. During the week of August 10th, there were parent concerns raised about care and certain children.

BDO obtained a written report, dated August 12, 2009, from the doctor in Ethiopia for the children. He confirmed that there is 24 hour nursing on site, twice weekly physical checkups, menu and nutrition monitoring. They are focused on and prioritizing proper care.

He reported on two specific case concerns being low iron and malnutrition. The iron diagnosis was already identified and considered to be “physiologic anemia of infancy”. Iron supplementing at an early age is associated with increased mortality based on their reports, studies and treatment. They encourage ongoing monitoring by the adoptive family as the child develops. The malnutrition situation was evident when the child was transferred to the transition home and was being addressed.

We will continue to monitor this as concerns are identified as the childrens’ care is a priority.

Post Adoption Reports
Families should continue to send these reports to the Imagine Adoption mailing address or to the BDO Kitchener office mailing address. The Imagine Adoption mail is being forwarded to BDO. Copies are being made for the file as well as being forwarded to the appropriate country representative.

Saint Anne families should have received other instruction as of August 14th. As confirmed by the Ministry of Children and Youth Services, these reports should be forwarded to their offices. They will be translated and sent to Ecuador.

Possible Restructuring Plan
This priority was discussed at the creditor meeting. This is the possibility to file a proposal pursuant to the Bankruptcy and Insolvency Act to allow the organization to be reinstated. A timetable of 2-4 weeks was indicated. This would end at August 28th.

Since July 30th and the creditor direction, there have been numerous discussions and meetings along with shared information to address this priority of a possible reinstatement of Imagine Adoption. The financial needs along with family, creditor and other stakeholder requirements have been the focus of all discussions.

BDO along with the proposed new Board continues to work on this priority. We plan to provide a draft to certain stakeholders, including the Inspectors, within the next two weeks. This will keep us on track with the 2-4 week timetable originally estimated.

Ghana Families
There have been several discussions with one particular representative for the Ghana families as well as the Inspectors (see below). We have continued to discuss Ghana with the licensing Ministry and legal counsel/adoption expert. The Ghana program may be a concern given government statements during 2008/9 of possible child trafficking by the contact orphanage and the Canadian contact.

The restructuring plan involves many issues including assessing countries to continue with adoption relations. There has never been an adoption completed from Ghana by Imagine Adoption. Thus, Ghana may require an independent review of relations and possible future adoption activity given the lack of answers to the issues surrounding Ghana adoptions. This is being considered for the restructuring proposal.

Inspectors
There was a second meeting of the Inspectors during the week of August 10th. They have provided comments and direction to the Trustee in considering communication, the proposal restructuring, family considerations and other matters of this bankruptcy. We expect to post some details of these meetings to this web site shortly so that all creditors are up to date on those meetings.

Conclusion
Thank you for your continued patience. BDO was providing very frequent updates until July 31st. The past two weeks has seen few updates given the other ongoing work. We will update the website regularly as information becomes available and provide some comment by Monday August 24th.

Sincerely

BDO Dunwoody Limited
Trustee in Bankruptcy