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THE ERON LENDER COMMITTEE

Eron Lenders Committee Newsletter: February 2, 1999

Judicial Trustee & Receiver: Capital Recovery-- Realization,Distibution,Litigation

1. Realization -- The projects that are now confirmed by PWC as realized or near realization are: ABC Boat Charters, Balak, Capital Place, Castlegar, Crampton, Davie, Desert Springs, Fairways at Arrowhead, Gaetz Crossing, Gallie, Homer Street, Leewood Village, Morewood, Proctor, Ravenswood, Rusin, Wallace.


2. Distribution Issues --Justice Tysoe will hear the distribution arguments Feb. 4-5 / 99.


3. PWC Civil Litigation--See the Jan.5 / 99 newsletter for the details of the first PWC lawsuit, against Eron's lawyer Douglas Jackie. PWC continues to investigate the possibility of civil lawsuits against other individuals related to the Eron fiasco.


4. RCMP Criminal lawsuits --The RCMP has now begun their review of information held in PWC files pertinent to their criminal investigations. Once cases are suitably defined, the information will be presented to the B.C.Crown Counsel, and it will be the B.C. Attorney General's decision as to how to proceed.


5. Brian Slobogian -See 3 above.


6. Onalee Slobogian--Mrs. Slobogian applied to Court on her and her husband's behalf to obtain a release of funds from the Mareva injunction trust, for the purpose of paying retainers to lawyers in anticipation of forthcoming legal bills arising from BCSC investigations and assorted civil litigation. Despite PWC's objection, Judge Bauman granted her $125,000. PWC is appealing this decision. If the appeal is granted, then the ELC will attempt to obtain "status" at the Appeal Court Hearing to give voice to the lenders' indignant outrage at this further insult!


7. Frank Biller --See # 3 above.


8. Frank Biller Bankruptcy -- Discharge hearings for Biller may come to the Court in March 1999; meanwhile, PWC and McKay & Co continue their negotiations about their respective claims to Biller's assets.


9. Michelle Biller -- Mrs. Biller has offered a settlement to PWC and McKay & Co. respecting entitlement to the assets of Biller Holdings. On behalf of Eron lenders PWC will pursue this matter by negotiation or litigation.


10. Other Investigations --James Tindle is working to investigate other information that may prove useful to all Eron lenders in the attempts to recover our $capital. *Important*: contact James with any information you think might further these efforts-tel #438-0915 or fax #738-2795.


11. Revenue Canada --See the last newsletter and the January all-lenders mailing for introductory comments on the discretionary rulings being provided by Revenue Canada to Eron lenders. At the Feb.2 /99 leaders' and lenders' meeting at the Legion Hall Craig Bushell will provide further detailed information to lenders. A series of additional instructions will be communicated to lenders in the coming months to prepare them to take advantage of this administrative provision. Do not refile your prior year's returns yourself; await PWC's instructions!


12. Laurentian Bank & Canadian Western Trust --Both companies will report to the lenders by letter and at the Feb.2 meeting.


13 .BC Securities Commission --An investigative hearing into the conduct of Slobogian and Biller begins April 12, 10:00a.m. at the BCSC, 865 Hornby St., 7th Floor.


14. Chartered Accountants' Institute of British Columbia --No news to report.


Communications, Projects, Volunteers, Class Action Litigation

15. Litigation:Class Action --On March 29 the class action application will be brought before Justice Tysoe for determination as to whether or not the case warrants class-action certification. Camp Church has set up an information telephone line:1 (877) 571-2288. In brief, if the certification is granted, then Eron lenders meeting the criteria of the class will be considered to be a part of the class unless they explicitly, in writing, inform Camp Church they wish to opt out of the class. More details about the procedures will be forthcoming. Currently, Judge Tysoe has been assigned by the Supreme Court as the Case Management Judge for this certification process. If and when the action is certified, general updates on the litigation process will be available at the websites: www.eron-pwl.com and www.geocities.com/WallStreet/6380

* The BC Government has indicated its intention to cross-examine Tindle.

* On Feb.2 the Court will hear the matter of the government's request to deny Camp Church certain documents claimed by the government to be " privileged".


16. Letter-Writing Campaign --Eron lenders continue to send poignant and emphatic letters to assorted institutional officials. Keep up the good work!


17. Media --James Tindle coordinates media relations for the ELC. Thankfully, the media remains sympathetic to the plight of Eron lenders,

* On the Jan. 28, 8pm A&E TV program " Law & Order" the 'Tappin Case' was presented, which has striking similarities to the Eron mess.


18. ELC Legal Counsel

* The Ladner Downs bill-payment application first brought to Court on Nov.13 / 98 will be heard in February by Judge Tysoe

* The ELC has been considering its future requirements for legal counsel. No determination has been made about which law firm will be engaged.


19. ELC Treasurer --Anthony Jasich has been elected the ELC Treasurer.


20. ELC Funding --The ELC, on behalf of all lenders, most sincerely thanks those individuals who have contributed various amounts up to $100. Some lenders have contributed more than once. We appreciate the financial sacrifices that Eron lenders are making when they donate. For those lenders who are able to contribute, and who have not yet done so, may we ask your participation? Please recall it has been through the sacrifices of other lenders who have already contributed that the work of your committee is enabled. Please send your cheque to:

Eron Lenders Committee
c/o Anthony Jasich, "in trust",
4725 Glenwood Ave.
North Vancouver, B.C.V7R 4G6


21. ELC Honorarium -- Please see item #18. Judge Tysoe has ordered a process to settle an undecided item of the Honorarium Application. This will be concluded in February, at which time Ripley's affidavit for an honorarium will also be heard. A copy of the latter affidavit mat be found on the website, and also may be obtained by fax or mail from Ripley (222-1646).


22. ELC Financials -- See item #18 & 21.No further news to report.


23. Project Leaders -* Important * Please remember to distribute to your project members as completely as your committee can the essential information in the newsletter. This is one of your commitments and responsibilities as a leader! This saves all Eron lenders significant $money by informing individuals of a wide range of information that otherwise they may believe they can only obtain by phoning PWC directly--at considerable hourly rate cost to all lenders

* The following information was provided to Project Leaders at the Feb.2/99 ELC-Projects Meeting:
Agenda, Feb.2 / 98 Newsletter, Jan.5/99 Project Leaders Meeting Minutes, Calendar, PWC information re. Revenue Canada provisions.

* For project leaders who wish to use the website for postings, please telephone / fax / email Catherine Palmer your information. Preparation of your material will be assisted by our volunteer webmaster, David Jackson, Tel #986-3718 or fax #986-6215 or email address www.vanlang.com Catherine Palmer's email address is: contact@eron-pwl.com, to be distinguished from PWC's Eron website,: www.eron-pwl.com

* Project leaders: See #25 below. Updated information re. Eron lenders' S.I.N., addresses, telephone numbers, fax and email should be sent to our database manager, John Hall, tel #876-9081.or fax #876-9082.


24. Website --The Eron website www.eron-pwl.com also functions as our archives. Project leaders; please encourage your members who are unfamiliar with visiting a website to try it at a friend's home, at a public library, or at a cybercafe.

* A 'link' has been made from the PWC/ELC website to the geocities website for updates on the class action lawsuit.

* For those lenders using the internet please recall that you can access written decisions via the B.C. Supreme Court documents website at: www.gov.bc.ca


25. Database --John Hall operates the database, Tel #876-9081 or fax #876-9082. Please see item #23 above and #26 below re. our database. We will be requesting lenders' Social Insurance Numbers in order to comply with Revenue Canada's requirements and we will need project leaders' help with this task.


26. Volunteers --Contact Wendy Menghi (Tel: 929-6003, fax 924-0629) with your questions about how you can get involved with the small, specific, manageable volunteer tasks that will help your fellow lenders, your ELC committee, and yourself!


27. ELC Administration --The ELC invites any lender who may contemplate applying for the open position on the ELC to contact any ELC member for further information.


28. Postal Communication --The next all-lenders mailing will come from PWC regarding Revenue Canada matters.


29. Calendar / Schedule -- An updated calendar to June / 99 is posted on the website. Please contact Steve Ripley with suggestions for items to be included: tel. #222-2646, fax #222-1641, email: sripley@imag.net


30. Newsletter -- This newsletter is the production of the ELC. It will be posted on the website without editing by PWC or R&D, who take no responsibility for its contents. Any Eron lender who wishes to suggest ideas or contribute to the preparation of the newsletter is invited to contact Steve Ripley.


31. Minutes -- Minutes of the monthly ELC-Project Leaders meetings are available to all Eron lenders. For a copy by fax please contact Steve Ripley, Tel: 222-1646, fax:222-1541, or else find them posted on the website.


32. Next Meeting -- March 2,1999, Tuesday, at 7pm -- ELC-Project Leaders and all lenders meeting, Royal Canadian Legion Hall # 148, 4356 East Hastings St., Burnaby. * Note: if the turnout at the Feb.2 meeting suggests a larger hall is going to be needed for our monthly meetings we will try to contact you through project leaders-but we request you confirm the next meeting place with a member of the ELC or with Martje. For further information regarding meetings,contact Martje Hartman, Tel #538-6601; also, see the ELC calendar.




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