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THE ERON LENDER COMMITTEE

Eron Lenders Committee Newsletter: March 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 --On February 17 / 99 Justice Tysoe issued an Order re. the principal distribution questions, in favor of non- pooling. A mandatory 30-day Appeal period ensues, after which-if there is no Appeal-further subsidiary distribution questions will be settled. On March 4 Justice Tysoe will hear a preliminary discussion regarding any hypothetical Appeal process, which has been requested by D.Hobbs, and also a request by Fredricksen for payout of Capitol Place.


3. PWC Civil Litigation --See the Jan.5 / 99 newsletter for the details of the first PWC lawsuit, against Eron's lawyer Douglas Jackie re. Shushwap. A second Writ against Jackie has now been filed, pertaining to South Thompson Guest Ranch. PWC continues to investigate the possibility of civil lawsuits against other individuals related to the Eron fiasco.


4. RCMP Criminal lawsuits --The RCMP has 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. Tindle has reported that the RCMP is severely underfunded for a task of the size of Eron.


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. R&D's Mark Andrews has now successfully won the right to an appeal of this decision, issued by Madame Justice Ryan on Feb.18 / 99. A B.C. Appeal Court Hearing date has been set for April 15 / 99.


7. Frank Biller --See # 3 above.


8. Frank Biller Bankruptcy --On Feb. 16 Justice Warren issued an Order granting a lifting of the stay- of- proceedings re. F. Bailer's bankruptcy, the result of which is that PWC may now proceed to lay civil charges against Biller. It is possible such charges may implicate Mrs. Biller and their family trust assets. Discharge hearings for Biller are, under these circumstances, unlikely to begin in the near future.


9. Michelle Biller -- Mrs. Biller has offered a settlement to PWC and McKay & Co (her husband's Bankruptcy Trustee) respecting entitlement to the assets of Biller Holdings and the family trust. On behalf of Eron lenders PWC will pursue this matter by negotiation or litigation-see item # 8, above.


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 Jan.5 / 99 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 provided further detailed information to lenders. A series of additional instructions will be communicated to lenders in the coming weeks and months to prepare them to take advantage of this administrative provision.* Do not refile your prior years' returns yourself; await PWC's instructions! File your 1998 Income Tax Return normally, as per your accountant's advice- you will receive no T-5's from PWC in 1999 for the tax year 1998 because no payments were made to you from PWC in 1998 [nor did any 'crystallizations' (payouts) occur in 1998 (as distinguished from 'realizations')].


12. Laurentian Bank & Canadian Western Trust --Laurentian has sent a letter to all Eron accounts, but CWT has yet to send it's letter. Both companies will assist PWC in implementing the Revenue Canada provisions. CWT has indicated the deadline for closing the account has been extended.


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.


E.L.C. Communications, Projects, Volunteers, Class Action Litigation

15. Litigation: Class Action --The March 29 date to hear the class action application before Justice Tysoe has been cancelled. A Cause of Action Hearing will occur March 2-3 as a preliminary step to the Class Action Hearing; the latter will be heard in April on a date to be determined. 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 from CC and the ELC. 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.


16. Letter-Writing Campaign --Eron lenders are continuing to send letters to assorted newspapers, institutional officials and politicians. 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.

* The Feb. 13 & 16 "Vancouver Sun" carried important articles, the first by David Baines, the second from the editors, and both of which suggested the B.C. Government had been negligent in not warning Eron lenders of the risks in dealing with Eron Mortgage Corp!

* In the March 25"'Geogia Strait" Charlie Smith reviews the Distribution order of Judge Tysoe.


18. ELC Legal Counsel

* The Ladner Downs bill-payment / ELC Honorarium application first brought to Court on Nov.13 / 98 will be heard on March 3 / 99, at 9:00 am. 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 Funding --The ELC, on behalf of all lenders, gratefully 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


20. 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 March 3, at which time Ripley's affidavit for an honorarium will also be heard. A copy of the latter affidavit may be found on the website, and also may be obtained by fax or mail from Ripley (222-1646).


21. ELC Treasurer's Report -- See item # 18.No further news to report.


22. 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 March.2 / 99 ELC-Projects Meeting: Agenda, March.2 / 98 Newsletter, Jan.28 / 99 Project Leaders Meeting Minutes, Tindle Feb. 24 / 99 letter to Hon. Lawrence MacAulay,

* 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: Updated information re. Eron lenders' S.I.N., addresses, telephone numbers, fax, and email will be collected by way of an all-lenders mailing, tentatively scheduled to be sent in mid-March.


23. 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


24. Database --John Hall operates the database, Tel #876-9081 or fax #876-9082.


25. 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!


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


27. Postal Communication --The next all-lenders mailing will come in March from PWC regarding Revenue Canada and Distribution matters.


28. 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. #222-1646, fax #222-1641, email: sripley@imag.net


29. 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.


30. 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: 222-1641, or else find them posted on the website.


31. Next Meeting - April 6,1999, Tuesday, at 7pm -- ELC-Project Leaders and all lenders meeting, Royal Canadian Legion Hall # 148, 4356 East Hastings St., Burnaby.For further information regarding meetings, contact Martje Hartman, Tel #538-6601; also, see the ELC calendar.




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