Onni Development completes restructuring of Evelyn Drive Project
September 15, 2011
150.00 Million CAD
On September 15, 2011, Onni Development Corp. completed the restructuring of the debt and ownership of the Evelyn Drive real estate project in West Vancouver, British Columbia. The project, located on over 20 acres of sloping terrain immediately above the Park Royal Shopping Centre, is currently zoned to permit over 500,000 square feet of residential development in a prime location in one of Canada’s most affluent residential areas.
The site for the project was assembled and the zoning was obtained by the Millennium Group of Vancouver, BC. Financing for the acquisition of the site and development costs was obtained by first and second mortgage loans from two institutional lenders and subordinated loans from Asian Trading Co. (L.L.C.). These loans went into default and realization proceedings were commenced by the two institutional lenders in December of 2010. The Bowra Group Inc. was appointed receiver of the project effective March of 2011. The total liabilities of Evelyn Properties Ltd., the owner of the project, were in excess of $150 million.
The restructuring involved the acquisition of the shares of Evelyn Properties Ltd. by Onni Development Corp., the restructuring of the subordinated loans with Asian Trading and a bankruptcy and a proposal (with The Bowra Group Inc. acting as trustee in both) to deal with the unsecured debt of Evelyn Properties Ltd. On the completion of the transaction, the first and second mortgage loans of the two institutional lenders were repaid from funds provided by entities related to Onni Development Corporation and Asian Trading and a new first mortgage loan from the two institutional lenders in the amount of approximately $66 million.
Onni Development Corp, headquartered in Vancouver, British Columbia, is a private real estate developer.
McCarthy Tétrault LLP represented Asian Trading Co., the subordinated lender, with a team led by Keith Burrell, Christopher Falk and Warren Milman.