WINNIPEG, April 10, 2019 /CNW/ - Lanesborough Real Estate Investment Trust ("LREIT") (TSXV: LRT.UN) is pleased to announce today that the Application for Receivership (the "Application") filed by Connect First Credit Union Ltd. ("Connect First"), the lender of the mortgage secured by the property classified as held for sale, and scheduled to be heard at the Court of Queen's Bench of Alberta on April 11, 2019, has been withdrawn.
On July 12, 2017, Connect First obtained an unsecured judgment in the amount of approximately $25 million and registered an unsecured writ of enforcement against LREIT in respect of such amount. Notwithstanding that such amount is unsecured and any amounts obtained by a receiver would first need to be paid to LREIT's secured creditors with any balance being shared, on a pro rata basis, among all of the unsecured creditors of LREIT, First Connect filed the Application on March 19, 2019. Upon receipt of the Application and in the days that followed, correspondence ensued among LREIT, Connect First, the secured creditors, other unsecured creditors and each of their respective legal counsel, focusing on preparing for the initial hearing date of April 11, 2019. These preparations were halted upon receipt of the notice filed by counsel to Connect First on April 8, 2019 withdrawing the Application.
Addressing the liquidity challenges, stabilizing operations and management maintaining its focus on the divestiture program, debt renewal/restructuring and initiatives aimed at improving operating results will continue during 2019. Management and the trustees of LREIT are pleased with the decision of Connect First to withdraw their Application.
LREIT is a real estate investment trust, which is listed on the TSX Venture Exchange under the symbols LRT.UN (Trust Units) and LRT.DB.G (Series G Debentures). For further information on LREIT, please visit our website at www.lreit.com.
This press release contains certain statements that could be considered as forward-looking information. The forward-looking information is subject to certain risks and uncertainties, which could result in actual results differing materially from the forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Lanesborough Real Estate Investment Trust
For further information: Gino Romagnoli, Chief Executive Officer, or Arni Thorsteinson, Vice-Chair, Tel: (204) 475-9090, Fax: (204) 452-5505, Email: firstname.lastname@example.org