Manulife Financial will take a charge in the third quarter due with respect to its holdings in AIG, Lehman Brothers and Washington Mutual.
The company says it had investments at par value in Lehman of $395 million, $374 million in AIG, and $41 million in Washington Mutual.
“These amounts, in aggregate, represent approximately one-half of one percent of our $164 billion in assets,” notes Donald Guloien, senior executive vice-president and chief investment officer.
The amount of the charge is dependent on a number of factors, including the amount of expected recoveries and actuarial cash flow calculations which will be performed following the close of the quarter on Sept. 30, 2008.
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CFM Creditors File Complaint Against Teachers’
The Official Committee of Unsecured Creditors of CFM U.S. Corporation has filed a complaint against the Ontario Teachers’ Pension Plan.
The complaint seeks to avoid more than US$300 million in claims asserted by Teachers’ arising out of its investment in Canadian fireplace manufacturer CFM.
According to the complaint, Teachers’ acquired 99% of the equity interests in CFM in 2005 with an initial investment of more than $179 million. By the time of the bankruptcy filings three years later, Teachers’ investment in CFM had nearly doubled.
The complaint alleges that the $300 million in unsecured claims should be treated as equity investments and subordinated to the claims of CFM U.S. Corporation’s unsecured creditors.
It also alleges that Teachers’ misled trade creditors of CFM U.S. Corporation by issuing press releases and sending letters to trade creditors and suppliers indicating that CFM “emerged as a financially sound business” as a result of the acquisition.
CFM filed for protection from its creditors in Canada and the U.S. in April as it sought restructuring alternatives to allow it to cope with the declining housing market. It has since been purchased by Monessen Hearth Systems of Paris, Ky.
Teachers’ says it cannot comment on the complaint as it’s before the courts.
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New Name for Wilson Banwell
Wilson Banwell PROACT Human Solutions has changed its name to Human Solutions and restructured itself into three separate business units.
The reorganization was made to establish a clearer distinction between employee family and assistance program (EFAP) services and non-EFAP services.
“As a result, we have set up our EFAP as a separate business unit that provides counseling services as well as a suite of services we call the Plan Smart Series and additional online services which were all designed to help clients take a proactive approach to managing everyday challenges and life transitions,” says Dr. Robert Wilson, the company’s founder and chief executive.
A second business unit now includes a range of organization and workplace support services, which are referred to as Workhealth.
And the third unit, Integrated Disability Management, will provide a range of services related to disability management and return to work.
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Groupworks Appoints CEO
Groupworks Financial has appointed John Gallivan as its chief executive officer.
He was appointed president of the company earlier this year.
Gallivan sold his business—Gallivan & Associates, which provides group benefits for post-secondary students—to Groupworks in 2007.
Groupworks is a consolidator of independent benefits and pension operations.