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Eron Lenders
Subject: Ravenswood 32nd Partners
Lender Update
November 17, 1998
Further to our letter dated April 2, 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 Ravenswood we indicated that we had been negotiating with one of the ownership interests to acquire the debt on Ravenswood for US$2,650,000, US$2,330,000 by cash and US$320,000 by way of a two-year note. Proposed closing was to be early July 1998. On July 7, 1998, the owners requested and were granted an extension in the closing date to July 30, 1998.
After repeatedly failing to meet agreed upon closing dates, final closing and payment of the cash amount took place on November 9, 1998. The remaining US$320,000 secured by a third charge on the property, a pledge of the Partnership's ownership interest and corporate guarantees of the partners, will mature on November 9, 2000. However, in view of the owner's inability to meet the July 30, 1998 closing date, we were able to renegotiate the repayment terms on the US$320,000 note. Any payments received by the second mortgage holder will be shared 84/16 with the third mortgage until the third mortgage is repaid or the maturity date is reached which ever occurs first, provided no event of default exists. Interest at 10% simple commenced on August 1, 1998 and will be added to the note.
If you have any specific questions concerning the project please contact us in writing at the Price Waterhouse Centre, 601 West Hastings Street, Vancouver, BC, V6B 5A5 or by fax at (604) 688-6128 marked to the attention of Ravenswood Mortgage - Project Lead.
Yours truly
Judicial Trustee
PricewaterhouseCoopers
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