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Eron Lenders
Project Name: Seasons Memorial Park Inc. #1122
Lender update
July 6, 1998
Further to our letter dated January 15, 1997 we are writing to update you on the status of the above noted mortgage.
Project Status
This project consists of two loans in the amounts of $2,200,000 and $1,000,000 to Seasons Memorial Park Inc. ("Seasons") and $5,183,831 of preferred shares of Seasons. Seasons obtained these funds for the development of a Mausoleum in the District of North Vancouver.
The loans advanced to Seasons went into default and we issued demands for the loans on January 15, 1998. Following numerous Court appearances over a number of months, Price Waterhouse Limited ("PWL"), was successful in obtaining a Court order to appoint Campbell, Saunders as Receiver Manager over all of the property (other than real property), rights, assets, businesses and undertakings of Seasons on June 16, 1998.
As the real property consists of land designated for a mausoleum, prior to encumbering the property, the Receiver Manager must first obtain approval of the Lieutenant Governor in Council for the Province of British Columbia.
The Receiver Manager is Court appointed and considered an officer of the Court and will act in a fiduciary capacity to all interested parties. The Receiver Manager's mandate will be to maximize realization on all the underlying assets . Any sale of assets requires the Court's blessing. Before approving any asset sale, the Court will ensure that the Receiver has made a sufficient effort to obtain the best price and that they have not acted improvidently.
The Receiver Manager's immediate tasks will be:
- Collect the books and records of Seasons;
- Secure and protect all assets;
- Seek approval from the Lieutenant Governor to encumber the real property;
- Contact the District of North Vancouver to discuss the building permit; and
- Realize on the assets of Seasons.
Lender Communications
We have established a web site at http://www.eron-pwl.com. On this site you will find project specific updates as well as related court orders. We have worked closely with the Season's Lender Committee and will continue to do so, in addition 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 PWL in the most cost effective manner we have available.
We will issue another letter as soon as we have significant new information to report. In the meantime, if you have any specific questions or information concerning the project please contact us in writing at the Price Waterhouse Centre, 601 West Hastings Street, Vancouver, BC, V6B 5A5or by fax at (604) 669-6128 marked to the attention of Seasons Memorial Park - Project Lead.
Yours truly,
Judicial Trustee
Deryck Helkaa
PricewaterhouseCoopers Inc.
601 West Hastings Street Suite 1400
Vancouver BC Canada V6B 5A5
Telephone +1 (604) 669-5087
Facsimile +1 (604) 688-6128
PricewaterhouseCoopers is a Canadian member firm of PricewaterhouseCoopers International Limited, an English company limited by guarantee.
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