Coromandel Properties: Creditors already taking over some Vancouver developments

Financially troubled Vancouver developer Cormandel Properties’ application for protection from its creditors was delayed in a court hearing Thursday, but the disassembly of its property empire has already begun.

B.C. Supreme Court Justice Kevin Loo adjourned Coromandel’s petition under the Companies and Creditors Arrangement Act to March 10, with the consent of its creditors.

Coromandel agreed to a separate application of one of those creditors, Peakhill Capital Inc., to appoint a receiver to take control of Coromandel’s Southview Gardens property, a 140-unit rental property at 3240 East 58th Ave. in Vancouver, that it was holding for future redevelopment.

And counsel representing Coromandel, Katie Mak, said negotiations since their initial application on Feb. 6 had led to agreements with other creditors to take other developments from the company’s portfolio of 16 properties.

Coromandel’s lenders began calling their loans, issuing demand letters for repayment, on Dec. 15, according to court filings. In court Thursday, Mak said that lenders had issued demands on virtually all of its properties, but since Feb. 6, there have been positive developments.