After a week in court League Group is seeing a few changes but will remain in creditor protection until June.
During a B.C. Supreme Court hearing John Parkinson was appointed the interim chief executive officer of League Financial Partners, the group behind Colwood’s Capital City Centre project.
The $1 billion development project at Goldstream Avenue and Sooke Road was marketed as the largest development on Vancouver Island. The ground broke on the project in 2012 and shoring and other ground work was completed. Now the development is at a standstill.
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, in a previous interview with the News Gazette.
The court approved the appointment and an extension to the Companies’ Creditors Arrangement Act – to facilitate compromises and arrangements between companies and their creditors.
League filed on Oct. 18 and court last week extended the proceeding to June 28, 2014.
IGW Public Limited Partnership, a member of the League Group, was also approved to sell all its units in TSX-listed Partners Real Estate Investment Trust (REIT), to McCowan and Associates Ltd., a private company. Capital City Centre is not a part of this sale.
The sale is estimated to be worth more than $27 million with the proceeds to be used to pay off some of League’s debt.
“The extension and the sale represents a step forward in the League Group’s progression through the CCAA process,” said Parkinson in a press release. “We are impressed with McCowan and Associates and believe their involvement will play a significant role in the future of Partners REIT.”