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Eron Lenders
Project Name: Fairways at Arrowhead
Lender update
August 5, 2003
Further to our letter of December 22, 1998, we are writing to update you on the status of the above noted mortgage.
Project Status
In our last letter to you with respect to Fairways, we indicated that the Fairways condominium project had been sold, but there was a lien on the property by the contractor, Decca for US$349,000. Decca was claiming priority over the Eron Lenders. In order to complete the sale of the project, Decca insisted that US$475,000 be set aside in trust to cover the amount of their lien, interest and potential legal costs. The Judicial Trustee agreed to Decca's demand in order to transfer clear title to the buyer.
After many court appearances, delays, and appeals by Decca, the court ruled in favour of the Judicial Trustee. On July 15, 2003, trust funds in the amount of US$475,000 plus accrued interest of US$55,833.71 were received. These funds have been placed in an interest bearing trust account pending the court's approval of the next distribution.
Lender Communications
We will continue to communicate directly with all lenders, however, we urge you to take advantage of the web site at http://www.eron-pwl.com for project specific updates as well as related court orders and other general information. If you need information on reclaiming tax on interest income in prior years, please call David Craig at (604) 713-6680.
Yours very truly,
PricewaterhouseCoopers Inc.
Judicial Trustee
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