British Columbia · Receivership (court-appointed)
First Report of Receiver dated August 16, 2024
Court officer report · 16 August 2024
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What we verified from this filing4 verified
- secured creditorsnote: Interest accruing at a per diem rate of approximately $19,500 since July 26, 2024, plus continuing legal fees and costs. Receiver's counsel (Blakes) has opined the Syndicate Security is valid, enforceable, and ranks in priority to unsecured creditors (Syndicate Security Opinion). Dispute: in August 2024 Forseed commenced litigation against BMO, 110 and Terrapoint alleging BMO improperly applied the Forseed Cash Collateral to the Syndicate Debt; Receiver notes a possible dispute over application of the Remaining Cash Collateral, and BMO reserves all rights. · page: 10 · as of: 2024-07-26 · amount: 86700000 · debtor: Haro-Thurlow Street Project Limited Partnership, Haro and Thurlow GP Ltd., Harlow Holdings Ltd. · creditor: The Syndicate (Bank of Montreal as agent, Canadian Western Bank, and Meridian Credit Union Limited) · currency: CAD · security: First-ranking mortgage against the Property; general security agreement against HTLP and Harlow Holdings' personal property; corporate and personal guarantees; various cash collateral including Forseed Cash Collateral (~$13.6M) and Prior 110 Cash Collateral (~$1.4M), both applied to the debt after the August 31, 2023 maturity; Remaining Cash Collateral as of July 26, 2024 comprised of Current 110 Cash Collateral (~$3.1M), CM Grouse Cash Collateral (~$5.6M) and BMO Cash Collateral/suspense account (~$518,000)
- secured creditorsnote: Current balance of the Second Mortgage has not been confirmed to the Receiver. The Partners (and CM Group members) are also guarantors of the Syndicate Debt owed to the first-ranking Syndicate; related-party lenders to the Debtors. · page: 11 · debtor: Haro-Thurlow Street Project Limited Partnership / the Property · creditor: The Partners (110, Forseed Haro Holdings Ltd., Terrapoint Developments Ltd.) · currency: CAD · security: Second-ranking mortgage against the Property, registered October 2018 (the "Second Mortgage")
- secured creditorsnote: TB CPL originally registered in 2021 and re-registered June 2024; arises from ongoing, unresolved TB Action alleging Mr. Zou breached fiduciary duties to GM International Holding Limited by causing it to advance $30 million to himself and related entities without adequate security; no determination of Treasure Bay's claims has been made (disputed claim). · page: 11 · as of: re-registration in June 2024 · debtor: Harlow Holdings Ltd. / the Property · creditor: Treasure Bay HK Limited · currency: CAD · security: Certificate of pending litigation (the "TB CPL") registered against the Property
- recovery outcomeentries: basis: estimated · quote: The Receiver's Charge (as that term is defined in the Receivership Order) which is expected to be nil as the Receiver has excess funds on hand to cover the current · pct of: unstated · outcome: nil · class key: court_charges · stated by: receiver · class label: Receiver's Charge · interim final: unstated · claims qualifier: unstated; basis: estimated · quote: The Receiver's Borrowing Charge (as that term is defined in the Receivership Order), which is expected to be nil. · pct of: unstated · outcome: nil · class key: court_charges · stated by: receiver · class label: Receiver's Borrowing Charge · interim final: unstated · claims qualifier: unstated; basis: estimated · quote: Certain deemed trust and priority claims which are estimated to be nil. · pct of: unstated · outcome: nil · class key: deemed_trust · stated by: receiver · class label: Certain deemed trust and priority claims · interim final: unstated · claims qualifier: unstated; basis: estimated · quote: In the event that the Court approves the Haro LP PSA, the Receiver's understanding is that the net realizations from the Haro LP PSA will not be sufficient to repay the Syndicate Debt and there will be a shortfall on the Syndicate Debt (not taking into account any of the cash collateral or other sources of recovery). · pct of: unstated · outcome: shortfall · class key: secured · stated by: receiver · class label: Syndicate Debt · creditor name: Syndicate · interim final: unstated · conditional on: In the event that the Court approves the Haro LP PSA · claims qualifier: unstated; basis: estimated · quote: The Receiver does not expect the unsecured creditors to receive any distributions based on the Haro LP PSA and the secured charges in place on the Property. · pct of: unstated · outcome: nil · class key: unsecured · stated by: receiver · class label: unsecured creditors · claims amount: 961245 · interim final: unstated · claims qualifier: estimated · stated on: 2024-08-16 · table missing: