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Project News - Nexus
March 28, 1999
The Nexus Committee met on March 26th with PricewaterhouseCoopers and their lawyer, Bob Standerwick. PWC presented a document reviewing their investigation into possible Nexus assets. Our understanding is that the range of net recovery is from 0 to $3.8 million.
Efforts towards recovery have been undertaken in Canada, France, and Hong Kong, and litigation is still pending in these 3 countries. PWC is being vigorously stalled or opposed in each jurisdiction by Michael Graye and his associates.
The major achievement of PWC has been to register a judicial mortgage in France on the lands of the Domaine Belleville vineyard in mid-March of 1999 in order to secure the Nexus claim of 15.1 million French francs. This is equivalent to approximately $3 million Canadian. The current estimated value of the vineyard is between 15 and 30 million French francs. In addition to our creditorship claim on the vineyard, there is another claim of 12 million French francs in a prior position to Nexus.
There remain many uncertainties in respect to recoveries in France. However, we appear to be at a stage where ongoing costs can be kept minimal and PWC can simply wait for other parties to negotiate with us since we
have a mortgage registered against the two vineyards at Domaine Belleville.
In conclusion, the only recovery for Nexus to date is $113,000 from the sale of Michael Graye's condo in Hawaii. This recovery goes towards Nexus costs incurred by PWC, for which we remain in a net deficit position.
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