Coromandel lenders line-up in opposition to creditor protection filing
Financially troubled Vancouver developer Coromandel Properties will be in B.C. Supreme Court on Thursday trying to stave off bankruptcy, but some of its creditors have begun lining-up to oppose its broad-reaching petition for relief from further legal action.
At least four, one in a separate lawsuit and three by way of responses to Coromandel’s petition for protection under the Companies and Creditors Arrangement Act (CCAA), have served notice that they oppose being included in the global filing.
All four provided Coromandel companies with mortgages. They argue that they made loans secured by specific properties, which Coromandel companies have now defaulted on.
And, they argue, it isn’t appropriate to combine their interests with Coromandel’s overall application when their loans could be repaid through ordinary foreclosure and sale of the individual properties.
Last week Coromandel filed a petition seeking protection from creditors, citing $700 million in debt on 16 Vancouver properties and difficulties servicing those loans due to sluggish progress on sites that are mostly in the proposal or rezoning phase and now in a slow real estate market.
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