(Source: 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.
Read Giuseppe Valiante’s full article “Bazis fends off receivership, for now, for 1 Bloor tower” in the National Post (July 20, 2009).