FW: RE: Cashflow statements

---

This is a forwarded message
From: "Ken Tessis"
To: rghall@canlighthall.com
Received: 3/4/2010 4:32:00 PM
Subject: RE: Cashflow statements

Hi Richard

Has everyone looked at these

Do/ should Evans & Young review them also

We will need them separated for each company

A few comments

"The projection has been prepared solely for the Trustee acting in the proposal, the Official Receiver and for our creditors, for purposes of our Proposal under the Bankruptcy and Insolvency Act “

Is the appropriate wording to use

A. Re the assumptions

1. Can you explain or what assumptions were made to arrive a the price & the number of units sold & the timing of the sales– do we have any external support for this-real estate agent

2. As above re vacancies etc

3. CONDO FEES – no change for entire 18 months – why not – what is your projection – a little will not significantly change cash needed

4. What about taxes I& insurance – some increases should be in schedule and noted in assumptions

5. Why can not water heaters be rented (minor no need to answer now)

B. Sales – what is plan –

i. do we have an agent in mind –

ii. have they given us a proposal –

iii. can we get one from them

iv. can we get their opinion as to A1 above

C. Projections

i. can you add the totals for the 12 months and the 6 month to show how the amount s bam,=lance to the funding – as that is not clear from the schedules all that is needed is a 12 and a 6 moth total on the second page -= then a summary showing the numbers on the “cover sheet”

ii. Carry costs for interim financing to be added at end – with legal fees etc 1.5 years X 25% = (see below – based on 300,000) could run another 112 ,000 or 5,625 per unit

D. Other

I would think that 300K maximum per group (Or about 300/20 = 15,000 per unit) would do it but all cash is not outstanding for the full time but we have to show worst case scenario to lender as they will be sophisticated and most likely have more to say about the projections – after they review them

After the revisions I suggested above at A2 & A3 and Ci. are done I think they will be acceptable as cash flow for the BIA filing requirements.

______________________________________________________
Kenneth M. Tessis CA•CIRP
Soberman Inc.
T: 416.963.7120

P Please consider the environment before printing this email.

From: Evelyn Bowles
Sent: Thursday, March 04, 2010 3:31 PM
To: 'Ridhard Hall'
Cc: 'sja@giffenlawyers.com'; 'stb@giffenlawyers.com'; 'adouglasburns@burnsargiropoulosllp.ca'; 'pivany@compasswealth.com'; Ken Tessis
Subject: Cashflow statements

For your information These are the standard statements which are signed by the debtor and the Trustee to accompany the filing of the cashflow statements as prepared by the debtor.

____________________________________
Evelyn L. Bowles
Estate Administrator, Insolvency
Soberman Inc.
2 St Clair Avenue East, 10th Floor
Toronto, Ontario M4T 2T5
T 416 963 7143
F 416 929 2555
E ebowles@soberman.com
www.soberman.com

Please consider the environment before printing this email.