Bazis International, a Kazakh developer planning a C$542 million ($490 million) hotel- condominium tower in Toronto, struck a deal with lenders that stopped the project from being put into immediate receivership.
A group of private lenders, who put up C$46 million for the development, deferred a request before an Ontario judge to place the project into receivership today and sell the property in the center of Toronto after negotiating all day with Bazis lawyers.
“The loan has been in an almost constant state of default since December,” Gary Berman, a spokesman for the lenders, said in court documents requesting the appointment of the accounting firm Ernst & Young Inc. as receiver.
Details of today’s agreement weren’t immediately available. Ontario Superior Court Judge Herman Siegel adjourned the request to Aug. 18, with consent from the lenders, provided conditions of the order are complied with. Siegel said he would sign a final copy of the order tomorrow.
Read Joe Schneider’s full article “Kazakh Developer Avoids Receivership for Project” in Bloomberg News (July 20, 2009).