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General Update - March 2006
We have completed (fully realized the assets of) 53 of the 54 projects that Eron had an interest in. The remaining project is Valleyview.
Of the 53 projects already completed, as at Jan 31, 2006, 36 show a positive recovery to the lenders, after costs. Of the 36 positive projects, we have completed a distribution to 27 projects, and disbursed $34,429,550.30 CDN. The majority of the 27 projects have already received 70% of their expected recovery.
We recently (March 2006) submitted two additional projects (Seasons & Marlat) to counsel and have asked them to make an application to be heard in Court for a distribution Order to bring them up to the 70% level of their respective recoveries.
The other 7 projects which show positive after costs are within a few percentage points of a zero return. Consequently, any upward shift in the indirect costs may put these projects into a zero or negative position. For this reason, any distribution to these projects will be done on the final distribution when Eron itself is completely wound up, and all costs have ceased.
The final "project" to be completed is EIC - as it is a lender to virtually every other Eron project, its outcome is unknown until the Valleyview project is completed.
Once the Valleyview and EIC matters have been resolved, the Judicial Trustee is obligated to bring a few large issues before the Court. Among these issues are: taxation of Judicial Trustee fees, taxation of legal fees and, calculation and disbursement of any legal settlement funds received. These important issues have a large impact on every project's return.
Lastly, the Court will issue an Order approving the final distribution to lenders. We are unable to predict when the final distribution will occur, however, we will post any pertinent notices to this website.
PricewaterhouseCoopers Inc.
Judicial Trustee of Eron Mortgage Corporation
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