This is a forwarded message
From: "Ken Tessis"
To: sja@giffenlawyers.com
Received: 3/16/2010 1:45:52 PM
Subject: RE: Breckenridge
Dear Mr Adler -
1. RE Stay - - we had asked and were advised that Equitable had not served BIA Sec 244 notices - but they had in fact in 2008 - and although we may be able to fight this – it would be costly and we most likely will be unsuccessful in any case as Equitable will oppose any motion - which they indicated they will.
2. Re cash flow – I apologize you are correct –it should have read $300,000 per pool as the amount is indicated on the cash flow – “assume sell out of units –in 18 months ” item 4 (2 pages) & 5 schedules. On item 5 it indicates that $39,710.10 would be the maximum shortfall – but I looked at the shortfall before sales proceeds (the bottom line on the 2 pages of item 4 – which shows the running shortfall before sales proceeds –which I based the amount of $300,000 required per pool. Feel free to call Richard Hall for any more information
3. It would appear the third and second mortgagees, and lenders and also any guarantors of any of the mortgages – perhaps even Equitable (if they have a shortfall ) could be the losers in this matter – and the owners of the companies would also lose as the underlying properties will be gone.
If you have any questions please call
______________________________________________________
Kenneth M. Tessis CA•CIRP
Soberman Inc.
T: 416.963.7120
P Please consider the environment before printing this email.
From: Simon J. Adler [mailto:sja@giffenlawyers.com]
Sent: Tuesday, March 16, 2010 7:52 AM
To: Ken Tessis; 'pivany@compasswealth.com'; terry@reiber.ca; 'adouglasburns@burnsargiropoulosllp.ca'
Cc: Evelyn Bowles; 'Allan Lipman'; rghall@canlighthall.com; 'byoung@croftonhouse.ca'; 'carol.evans@kone.com'; 'carolevns@yahoo.ca'
Subject: RE: Breckenridge
Ken,
Thanks for the update. However, I don't understand the need for "$600,000 per pool" based on the figures from Richard Hall.
I'm wondering if it would make sense to hold a mass meeting of all relevant parties -- esp. including Equitable if we can get them to come -- to see where this is going.
In the meanwhile, it seems to me that the party to be most injured at this time by a failure of the proposal will likely be the second mortgagees. I would have thought that the stay imposed by the notice of intention under the BIA would have trumped the attornment of rents by Equitable.
I look forward to discussing this with you further.
Simon Adler
Giffen LLP Lawyers
Mailing address: P.O. Box 2396,
Kitchener, Ontario N2H 6M3
Street address: 500 - 50 Queen St. N.
Kitchener, Ontario
Tel: (519) 578-4150 ex. 545
Fax (519) 578-8740
e-mail: sja@giffenlawyers.com
website: http://www.giffenlawyers.com
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From: Ken Tessis [mailto:ktessis@soberman.com]
Sent: Monday, March 15, 2010 7:50 PM
To: 'pivany@compasswealth.com'; terry@reiber.ca; Simon J. Adler; 'adouglasburns@burnsargiropoulosllp.ca'
Cc: Evelyn Bowles; 'Allan Lipman'; rghall@canlighthall.com; 'byoung@croftonhouse.ca'; 'carol.evans@kone.com'; 'carolevns@yahoo.ca'
Subject: BreckenridgeI spoke to Richard Hall today to discuss a few issues-
1. As Equitable is collecting rents he with respect to the pooled rental units, he has nothing to really manage on behalf of the rental pool at this time
2. With respect to the sales of the units – no for sale signs have gone up. and possibly that Equitable is not familiar that his related sales operations- which had been “planned” to be used in selling the units
3. No funds are available to pay him from as there are no rental revenues
4. He is concerned for the rental pool that Equitable will not maintain the units or do anything other than what is legally required - which will impair the value of the rental units and …
As condo property manager
5. he has concerns as to #3 above as it will reflect on the whole project
6. He has concerns as to the lien rights and priority re condo fees if in arrears – If Equitable does not pay
7. How or who will now pay the superintendent ass before the amount was split between all three entities – the 2 rental pools & the condo corp.
We told him that we have no objection to him speaking to Equitable (who still has not formally said “no” to providing the financing in second position:
i. Explain his concerns
ii. Provide the sales “plans” - for maybe Equitable will agree to allow some signs to be put up to evaluate the “action” that occurs – which may assist them in their decision to fund or not
Finally it would appear that without obtaining the financing of about 600.000 per pool - we will not be able to keep the proposals going, and /or to make some arrangements with Equitable to allow some time to allow us to obtain a higher realization to lessen the losses by the mortgage holders.
Regards to all
_______________________________________
Kenneth M. Tessis CA•CIRP
Soberman Inc.
Trustees and Receivers
2 St. Clair Ave. East, 10th floor, Toronto On M4T 2T5
Phone : 416-963-7120
Toll Free 1-877-929-2501 X 7120
Fax : 416-929-2555
Email :ktessis@soberman.com
www.soberman.com
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