Canadian Developer Bramalea Goes into Bankruptcy
LONDON (AP) _ Troubled Canadian property developer Bramalea Ltd. has gone into bankruptcy following the resignation of all its officers and directors, the Financial Times reported in Friday’s editions.
After the directors and officers of the Toronto-based company quit Wednesday the Canadian Imperial Bank of Commerce, one of its biggest lenders, immediately applied for a court bankruptcy order.
Company lawyer Ronald Slaght was quoted in the Times as saying Bramalea’s directors and senior officers ``had come to the realization that there was no value for shareholders, and that the only beneficiaries were secured debtors and debenture holders.″
The development leaves creditors of Bramalea free to seize office buildings, shopping malls and undeveloped land worth more than $2.9 billion.
Bramalea, which negotiated two restructuring plans during the past three years, was in the process of gradually selling off the bulk of its assets, the Times said. Those included commercial property and residential land mostly in Southern California and southern Ontario.
Canada’s big five banks hold the bulk of Bramalea’s debt of 3.5 billion Canadian dollars, or about $2.6 billion. The creditors have yet to decide whether to appoint a liquidator or negotiate deals on individual properties, the Times said.