Court appoints counsel to represent investors in Edgeworth's CCAA proceedings

TORONTO, Nov. 22, 2011 /CNW/ - On November 10, 2011, Edgeworth Properties Inc. and certain of its affiliates (collectively, the "Companies") obtained protection under the Companies' Creditors Arrangement Act ("CCAA").  Pursuant to the order issued by the Ontario Superior Court of Justice (Commercial List) (the "Court") on November 10, 2011 (as subsequently amended on November 18, 2011) (the "Initial Order"), Grant Thornton Limited was appointed as the Companies' monitor (the "Monitor"). On the same date, a Receiver was appointed over 16 of the Companies' properties pursuant to an order of the Court (the "Receivership Order").

On November 18, 2011, the Monitor sent notice of the CCAA proceedings to the Companies' creditors in accordance with the CCAA. A copy of the notice is available on the Monitor's website at www.GrantThornton.ca/Edgeworth.

The Initial Order appointed legal counsel (the "Representative Counsel") to represent the interests of three groups of stakeholders, being:

  1. The parties that purchased land lots from the Companies (the "Lot Purchasers");
  2. Investors in Edgeworth Mortgage Investment Corporation, Edgeworth Mortgage Investment II Corporation and Biggs Avenue Mortgage Investment Corporation (collectively, the "MIC Investors"); and
  3. Parties that invested in the Companies by purchasing 'undivided interests' in certain of the Companies' properties (the "UDI Holders").

Meetings for the MIC Investors have been scheduled by Representative Counsel to the MIC Investors on Thursday, November 24, 2011 at 5:00 p.m. at the Shaw Conference Centre Salon 8 in Edmonton, Alberta and on Friday, November 25, 2011 at 9:00 a.m. at the Radisson Hotel Calgary Airport Rocky Mountain Ballroom in Calgary, Alberta. Details regarding the meetings of the MIC Investors can be obtained by accessing the Monitor's website.

Aird & Berlis LLP acts as Representative Counsel to the MIC Investors, Osler, Hoskin & Harcourt LLP acts as Representative Counsel to the Lot Purchasers and Stikeman Elliott LLP acts as Representative Counsel to the UDI Investors. Fasken Martineau DuMoulin LLP was also appointed as Representative Counsel for the UDI Holders and the delineation of roles between Stikeman Elliott LLP and Fasken Martineau DuMoulin LLP will be the subject matter of a further order of the Court.

Any UDI Holder, Lot Purchaser or MIC Investor can opt out of the "class" representation by providing Representative Counsel and the Monitor with written notice that such UDI Holder, Lot Purchaser or MIC Investor does not wish to be represented by Representative Counsel. It is anticipated that a motion will be brought in the short term that will, among other things, provide a form and deadline for opting out of "class" representation.

Contact information for Representative Counsel to the Lot Purchasers, MIC Investors and UDI Holders, together with a copy of the Initial Order and all documents filed with the Court in the CCAA proceedings are available on the Monitor's website at: www.GrantThornton.ca/Edgeworth.

Lot Purchasers, MIC Investors and UDI Holders are encouraged to refer to the Monitor's website frequently for updates in the Company's CCAA proceedings.  Parties wishing to contact the Monitor can call: 1-855-747-2648 or email: edgeworth@ca.gt.com.

"The appointment of Representative Counsel provides a substantial number of stakeholders with a voice in the CCAA proceedings. The Monitor will be in close contact with Representative Counsel in order to ensure that the Companies' diverse groups of stakeholders are apprised of developments in the CCAA proceedings and are able to provide input as the Companies and the Chief Restructuring Organization formulate a restructuring plan," said Michael Creber of Grant Thornton Limited.

Notes to editors
Grant Thornton Limited is a Canadian Member of Grant Thornton International Ltd.

SOURCE Grant Thornton LLP

For further information:

Tania Freedman
T 416.607.2745
tania.freedman@ca.gt.com
Issued on: November 22, 2011


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