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Eron Lenders to Castlegar
Project Name: #1190 - Castlegar
VMX/WEB - Box # 2161
Lender update
December 15, 1998
Subject: Castlegar Mortgage
Dear Lenders:
This letter is to provide you with an update as to the status of the Castlegar Project. After consultation with your Lender Committee, PricewaterhouseCoopers, in its capacity as judicial Trustee of 498869 BC Limited, agreed to accept $1,078,034.50 in exchange for providing a final discharge of the above noted mortgage. The payment of $1,078,034.50 comprised the remainder of the principal balance owing under the mortgage plus a portion of the professional fees incurred on the file since the appointment of the Judicial Trustee on October 3, 1997. These funds were received at our offices today and the discharges have been executed.
As you are aware, $250,000 was repaid by the borrower early in 1998 and has been held by the Judicial Trustee. A summary of the total realized on this project is as follows:
Funds received in Jan. '98 - $ 250,000.00
Funds received Dec. '98 - 1,078,034.50
Total realization - 1,328,034.50
The total funds of $1,328,034.50 will be held in trust pending Court direction regarding the various distribution issues surrounding Eron Mortgage Corporation. We are appearing before the Court latter this week to seek direction from the Court with respect to resolving the various distribution issues. At this time we cannot estimate when the Court will make a final decision on the outstanding distribution issues.
We plan to issue another letter as soon as we have significant new information with respect to the distribution of these funds. In the meantime, if you have any specific questions, concerning this project please contact our Mr. Deryck Helkaa at (604) 896-7557.
Yours very truly
PricewaterhouseCoopers Inc.
In its capacity as Judicial Trustee
of 498869 BC Limited
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