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Eron Lenders
Project Name: Fairways at Arrowhead
Lender update
December 22, 1998
Further to our letter of May 15, 1998 we are writing to update you on the status of the above noted project.
Project Status
In our last letter to you with respect to Fairways we indicated that we had commenced a foreclosure action to gain possession of the property. The property was foreclosed on August 6, 1998, following which we invited offers from 24 potential buyers who had expressed an interest in the property. Twelve offers were received. The top six offers were selected and these potential purchasers were asked to rebid on the project. Three final offers were received from which we selected the top bidder to proceed to due diligence.
The sale of the Fairways project closed on December 11, 1998 and the final sale price was US$7,606,500. The first mortgage holder was owed US$3,200,948. In addition, there was a lien on the property by the contractor, Decca in the amount of US$349,000. Decca's lien priority over the Eron lenders is in question and will be settled by application to the US Court.
If you have any specific questions concerning the project please contact us in writing at the Price Waterhouse Centre, 601 West Hastings Street, Vancouver, BC, V6B 5A5 or by fax at (604) 688-6128 marked to the attention of Fairways - Project Lead.
Yours truly
Judicial Trustee
PricewaterhouseCoopers
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