General Update - October 2010

PricewaterhouseCoopers Inc., as Judicial Trustee (“JT”) of Eron Mortgage Corporation (“Eron”) is pleased to announce we are in the process of winding up the Eron estate. We have completed administration of 53 of 54 trust projects, and take this opportunity to provide an update on a few of the remaining tasks, including the final distribution of funds, as outlined below:

Severance of the Valleyview Heights (“Valleyview”) project

Valleyview is the last remaining project to be realized from Eron’s trust assets.

In September 2010, we were successful in obtaining a Court Order which essentially transferred the oversight of this project to its lender committee. Final paperwork on this step is expected to be completed on October 26, 2010. The completion of this severance is a key step in moving forward to the closure of the Eron estate.

Final Distribution – Judicial Trusteeship

The JT anticipates that final distributions will occur on the following projects:

570 Dunsmuir*
Caesar’s Landing*
Desert Springs
Enterprise Business Park*
Goodridge Peninsula*
Marlat Resources*
Petrochemical*
Seasons
Wilmington River
Lee Balak
Castlegar*
Discovery Ridge*
Fairways
GP Airport
Ezio Montagliani
Raven
Shopkeeper
Blake Davie*
Fred Crampton*
EIC
Gaetz Crossing*
Leewood Village
Morewood
Riva Pointe
Sterling Place*

* Mailings to all lenders in the above projects who held their Eron investment in an RSP will get underway the week of October 25, 2010. The purpose of the mailing is to notify you of your options in receiving your payment. Please note that you must SIGN your election form, and send it to PwC, either by PDF/email, or by Canada Post.

For convenience only, we provide a link to the RSP form by clicking here.

In addition to the above projects, the JT anticipates that a distribution may also occur on the following projects:

1107 Pacific Drive (mortgage # 1142 only)
Paulsen Road
PG Woods (mortgage # 1158 only)
Shuswap Falls

All of these projects’ RSP lenders will also receive the RSP mailing.

If your project is not listed in this section, there will be no distribution available.

Timing of Distribution

We do not have a definite date for payment of the final distribution, but anticipate it could be between March and April, 2011. Towards this end, we are currently asking all lenders in the above projects to confirm their mailing address with the JT. To confirm or update your address, please complete this form (click here to dowload) and either email it, or mail it via Canada Post, to the JT at the following address:

PricewaterhouseCoopers Inc.
Judicial Trustee of Eron Mortgage Corporation
Attention: Edwina Croft
700 – 250 Howe Street
Vancouver BC V6C 3S7

In order to keep costs down, we ask that Eron investors not call PwC, rather, use the email links on this website if at all possible. We will endeavour to answer the emails within 48 hours, however if volume exceed our expectations, it may be a 72 hour turnaround.

We will be posting materials and information to this website, as it becomes available.

Update on Losses with Canada Revenue Agency (“CRA”)

As we complete the final distribution, we will be able to confirm the exact amount of recovery/loss on each project. For lenders who filed their losses through the process initiated by the Judicial Trustee, we will be updating everyone's loss/recovery numbers directly with CRA.

This step could result in either tax being paid or refunded, depending on your actual recovery going up or down from what was claimed. We will communicate further on this step as it nears.

Distribution – Other Affiliated Projects

After the above steps are completed, funds will also flow to the lenders in these affiliated Eron companies, and lenders in these projects will also receive their final distribution, and loss/recovery confirmation:

• Eron Financial Services ("EFS")
• Capital Productions Inc. ("CPI")


PricewaterhouseCoopers Inc.
Judicial Trustee of Eron Mortgage Corporation




BACK