a small victory
Bazis fends off receivership, for now, for 1 Bloor tower
Posted: July 20, 2009, 7:06 PM by Rob Roberts
By Giuseppe Valiante, National Post
Lawyers representing the owner of 1 Bloor reached a deal with creditors yesterday, holding off receivership proceedings on the landmark development until mid-August.
Bazis International has not made payments since December on the $46-million dollar loan it received to build an 80-storey tower, what was to be the largest residential building in Canada, at the southeast corner of Yonge and Bloor streets.
A court order that was agreed to by lawyers from both sides will be issued this morning and will outline what Bazis’s North American chief Michael Gold can do with the property until court resumes Aug. 18.
Mr. Gold’s creditors, a numbered company listed in the statement of claim, are demanding repayment of the initial loan, plus $1.2-million in structuring fees and accrued interest. His creditors are looking to appoint a receiver who will auction off the assets, estimated at around $50-million, to repay the loan.
Mr. Gold reportedly blamed the poor economy for his defaulting on the loans, and said he was being brought to court by three businessmen who are using private information he gave them to take control of the land.
The building was scheduled to include more than 592 units, a luxury hotel with 126 suites and three floors for office and other commercial spaces.
Lawyers for both sides negotiated for hours in a closed room at the downtown courthouse yesterday. Bazis lawyer Lawrence Thacker wouldn’t say what was in the court order, but confirmed Bazis still owns the property and no receiver has been appointed thus far.
“The question of whether there will be a receiver or not will not be [decided] until the [Aug] 18,†Mr. Thacker said.
When plans for the building were announced, people camped out for days hoping to buy footage in the elite real estate.