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Eron Lenders
Projects 1109, 1174 and 1208
Borrower: Everbrite Ventures Ltd.
Lender update
July 3, 1998
Further to our letter of April 16, 1998 we are writing to update you on the status of the above 2nd, 3rd and 4th mortgages on the Hemer Road subdivision in Cedar, BC.
Project Status
The first mortgage continues to bear interest at 22%.
On June 5, 1998 we obtained judgement and Order Nisi against Everbrite Ventures Ltd. and Henry Unger pursuant to the 2nd and 3rd mortgages. The borrower asked for, and received, a redemption period of 120 days. This redemption period is, however, subject to the borrower completing filing of the subdivision and strata plans within 40 days of the court order. If that deadline is not met, we are at liberty to immediately apply for conduct of sale.
Based upon correspondence received during the past three weeks, it appears the borrower is finally taking active steps leading toward the point where individual lots could be sold. The costs of reaching this critical point (such as renewed survey costs, land title office fees, and property taxes) are being advanced by the first mortgagee as protective disbursements, with our concurrence.
Due to the importance of achieving the filing of the subdivision and strata plans, we have chosen to forebear taking any action against the guarantor until the plans are filed or the debtor has indicated they are not proceeding to that objective. We trust you will concur with this strategy.
Lender Communications
As you are probably aware we have a web site at http://www.eron-pwl.com. On this site you will find project specific updates as well as related court orders and other general information.
We will continue to communicate directly with all lenders, we urge you to take advantage of the web site so that you can receive first hand current information from the Judicial Trustee in the most cost effective manner we have available.
We plan to issue another letter as soon as we have significant new information with respect to the distribution. In the meantime, if you have any specific questions or information concerning the project please contact us in writing at 1400-601 West Hastings Street, Vancouver, BC, V6B 5A5 or by fax at 604-688-6128 marked to the attention of Everbrite - Project Lead.
Yours truly,
Judicial Trustee
PricewaterhouseCoopers Inc.
601 West Hastings Street Suite 1400
Vancouver BC Canada V6B 5A5
Telephone +1 (604) 669-5087
Facsimile +1 (604) 688-6128
PricewaterhouseCoopers is a Canadian member firm of PricewaterhouseCoopers International Limited, an English company limited by guarantee.
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