Onni Development Completes Restructuring Of Evelyn Drive Project

Onni Development Corp. of Vancouver, BC, completed the restructuring of the debt and ownership of the Evelyn Drive real estate project in West Vancouver, British Columbia.

The project, located on 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. Financing for the acquisition of the site and development costs was obtained by first and second mortgage loans from two institu-tional 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, 2010.

The Bowra Group Inc. was appointed receiver of the project effective March of 2011. The total liabilities of Evelyn Prop-erties 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 re-structuring 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.

Farris, Vaughan, Wills & Murphy LLP (Mitchell Gropper, QC, David Gruber and James Matthews) represented Onni Development Corporation and income tax advice was provided to Onni by Thorsteinssons LLP (Ted Sutcliffe).

The institutional lenders were represented by Gowling Lafleur Henderson LLP (Colin Brousson and Donald Weaver).

McCarthy Tétrault LLP represented Asian Trading Co. (L.L.C.) (Keith Burrell, QC, Warren Milman and Christopher Falk).

The Bowra Group Inc. was represented by Fasken Martineau DuMoulin LLP (John Grieve and Marcel Peerson).

Fraser Milner Casgrain LLP (John Third and John Sandrelli) advised the Millennium Group.