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Eron Lenders
Project Name: Sterling Place
Lender update
April 14, 1998
Further to our letter dated December 19, 1997, we are writing to provide you with a further update on the status of the above noted mortgage.
Project Status
On March 31, 1998, the Judicial Trustee of 504092 BC Ltd. completed negotiations and entered into a Standstill Agreement ("Agreement") with the borrower, 708804 Alberta Ltd. and the guarantor, 570 Dunsmuir Holdings Ltd. As you might be aware we experienced considerable difficulty on a number of occasions in verifying what was actually advanced by the bare trustee and what was received by the borrower. The Agreement confirms the amount that we were able to substantiate owing by the borrower under the mortgage as $3,600,000 as at February 28, 1998. From March 1, 1998, interest will accrue at the interest rate recorded on the mortgage (15%), and the entire amount of principal plus interest is due to be repaid no later than June 30, 1998. Once the loan is repaid the funds will be available to cover costs and then be distributed to lenders.
Lender Communications
As you are probably aware we have a web site at http://www.eron-pwl.com. On this site you will find project specific updates as well as related court orders and other general information.
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 the Judicial Trustee in the most cost effective manner we have available.
We plan to issue another letter as soon as we have significant new information with respect to the distribution. In the meantime, if you have any specific questions or information concerning the project please contact us in writing at 500 - 1380 Burrard Street, Vancouver, BC, V6Z 2H3 or by fax at (604) 688 6128 marked to the attention of Sterling Place - Project Lead.
Yours truly
Judicial Trustee
Eron Lenders
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