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Eron Lenders
Project Name: Shopkeeper at Imperial Beach
28 June, 2000
Lender Update
Further to our letter of December 8, 1998, we are writing to update you on the status of the above noted project.
Current Status
In our last letter to you with respect to Shopkeeper we indicated that the borrower had arranged financing on six of the eight condominium units to payoff the first mortgage and was attempting to arrange financing on the remaining two units to payout the Eron mortgage. In addition, we had agreed to extend the maturity date of the mortgage until February 10, 1999 to allow refinancing negotiations to continue and sales to materialize.
Sales of the condominium units were slow to materialize. A further extension to July 30, 1999 was granted in return for an extension fee and interest being brought current. The first sale occurred in July 1999 with further unit sales in August, and December 1999. Three units were sold in January 2000, which together with the net sale proceeds of the 1999 sales, reduced the amount of the mortgage outstanding to approx. US$100,000. The balance of the mortgage was repaid on May 31, 2000 following refinancing of the remaining two units.
All principle and interest outstanding on the mortgage together with approximately US$32,000 in extension fees was recovered from the borrower. The net amount available for distribution totals US$604,126.73. These funds are being held in an interest bearing trust account. The Court approved a partial distribution on June 23, 2000 and your cheque is enclosed.
Lender Communications
We will continue to communicate directly with all lenders. However, we urge you to take advantage of the web site at http://www.eron-pwl.com for project specific updates as well as related court orders and other general information. The Eron Lenders Committee has set up an information line, which can be reached by dialling (604) 878-4484. If your enquiry is of a general nature, you should contact James Tindle of the Eron Lenders Committee at (604) 438-0915. If you need information on reclaiming tax on interest income in prior years, please call David Craig at (604) 713-6680.
Yours truly
Judicial Trustee
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