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Eron Lenders
Project Name: Sterling Place, Edmonton, Alberta
Lender update
4 October, 1999
Further to our letter dated December 4, 1998, we are writing to provide you with a further update on the status of the above noted mortgage.
Project Status
The Sterling Place Lenders' Committee (Committee) which the lenders elected in November, 1997 recently made application to the Honourable Mr. Justice Tysoe for an Order charging the Sterling Place mortgage in favour of the Committee to cover any legal and consulting fees, and expenses incurred by the committee in representing your interests. A copy of the Order is enclosed for your review.
The unpaid legal fees and disbursements, and out of pocket expenses incurred by various committee members are approximately $30,000 at this time. Until a final payout takes place, your committee anticipates additional fees and disbursements.
You will note that in accordance with the Order, if you have any objections to its terms you are at liberty to make application to set aside the Order within thirty (30) days of the date of this mailing. Should you wish clarification as to the need for the Order or its consequences, please contact Kamal Rizkalla at (604) 925-9180 or Ian G. Wragge at (604) 985-6474 (Home); (604) 688-8671(Office) or the Sterling Place - Project Lead at (604) 806-7000.
We understand funds were solicited from the lenders to cover legal costs. These funds will be returned in full to those lenders who provided a deposit.
Following the Lenders approval to accept the borrower's offer to pay down the mortgage, $4,100,000 was paid into an interest bearing account in court. A dispute had arisen over whether the agreed upon amount was $3,600,000 or $4,100,000. Legal counsel for the Judicial Trustee has been attempting to arrange a date for Examinations for Discovery, but the borrower has proven uncooperative. A date has now been set for October 27, 1999, following which a motion for dismissal of the borrower's claim will be made. Once this issue and the distribution issues currently before the court have been settled, distribution can take place.
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. If your enquiry is of a general nature, you should contact Steve Ripley at (604) 222-1646. 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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