League Financial Partners have been in court this week dealing with a proposal to its creditors and shareholders. It filed for a Companies’ Creditors Arrangement Act (CCAA), Oct. 18.
Court was set for Nov. 18, 19 and 22.
An outcome and information should be made available to creditors and shareholders by Friday afternoon, Nov. 22.
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What was once set to be largest development on Vancouver Island, is caught in a tight financial hurdle.
League Financial Partners, the group behind Colwood’s Capital City Centre project, filed for a Companies’ Creditors Arrangement Act (CCAA), Oct. 18.
This a process where a corporation seeks the court to put a stay into place for its creditors and shareholders.
Between struggles with gaining financing for the Colwood project and one in Duncan along with challenges creating two public companies last year, League felt filing for CCAA was the only option, said Adam Gant, League group CEO.
“We needed to protect the assets during the reorganization,” Gant said adding once the process is complete, “We will have a stronger company and cleaner simpler company.”
Gant explained there is uncertainty during this stage in the CCAA, he has positive hopes for Capital City Centre’s future.
“My personal desire is to see it be developed, there is a lot of value in that,” Gant said.
Since filing League has 30 days (to Nov. 18) to come up with a plan to propose to its creditors and shareholders. This is often a step taken to avoid bankruptcy.
League said it has started a restructuring plan, but the terms of that plan have not been announced.
Price Waterhouse Cooper in Vancouver will be handling the CCAA.
“This is disappointing for sure,” said Colwood Mayor Carol Hamilton. “League has 105 projects and if you have 105 projects in the air, something is going to fall.”
Capital City Centre was marketed to Colwood residents as creating a “downtown” hub for the city.
“This project is a priority and even if it’s not League who finishes it (someone will be keen to). It’s a very attractive site,” Hamilton said adding all the site remediation and underground work are complete. “The ground up stuff is relatively simple.”
