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Eron Lenders
Project Name: Gaetz Crossing
Lender update
April 2, 1998
Further to our letter of December 19, 1997 we are writing to update you on the status of the above noted mortgage.
Project Status
The Judicial Trustee has continued to discuss realization strategies with the borrower and is hopeful an agreement can be finalized with Gaetz Crossing Ltd. ("Gaetz"). Gaetz has offered to redeem the mortgage on the property for a price of $2,600,000 payable as to $2,400,000 in cash and $200,000 in one (1) year from Closing, and failing which Gaetz will deliver a quit claim deed to Price Waterhouse Limited. The proposed closing date would be early June 1998. A 30 day extension would be available if Gaetz pays to the Judicial Trustee the sum of $100,000 (applicable to the redemption price, but non-refundable), in which event the quit claim deed would be delivered at the expiration of the additional 30 days.
A total of $2,687,000 was advanced to the borrower. A current opinion of value on the property indicates a value range between $2,400,000 and $2,600,000.
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 500 - 1380 Burrard Street, Vancouver, BC, V6Z 2H3 or by fax at (604) 688 6128 marked to the attention of Gaetz Crossing - Project Lead.
Yours truly
Judicial Trustee
Eron Lenders
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