Here it is. There are 105 companies in this League of
Madness Sadness as thousands of seniors and widows and orphans lose their money.
Official Court Documents
Highlights of the Affidavit
CAUSE OF DIFFICULTIES AND NEED TO RESTRUCTURE
56. A number of factors have led to the League Group’s current financial difficulties.
57. The first factor, which I believe was common to many businesses, was the credit crisis whichbegan in 2008. The result was that the development of many League Group projects had to be delayed because of a general tightening in the credit markets as well as a substantial drop in demand for commercial properties. While both of these factors have substantially corrected themselves, the League Group is left with a large amount of legacy debt from that time period. Further, the credit crisis changed how a number of lenders conducted their underwriting requirements for making loans, and this resulted in the League Group having a smaller number of lenders to look to, generally at a higher cost. The spiral of higher credit costs has put a substantial pressure on the League Group’s cash flow.
58. The second factor, resulting from the recovery of the credit markets, has been an increase in the demand for redemptions by investors. During and following the financial crisis, it has been my experience that investors were Interested in the stable returns associated with real estate. Once the financial crisis passed, Investors have indicated to me that they are more Interested In higher risk investments with higher returns than those offered by the League Group. This has resulted in a larger than anticipated number of redemption requests by Investors, further straining the League Group’s cash flow.
59. The third factor has been a couple of projects that have suffered set-backs and required substantial injections of cash. In particular;
(a) the development of Redux Duncan has been delayed by disputes with the Cowichan Tribes First Nation who own the land on which the development is located. The band has failed to enter Into a servicing agreement with the City of Duncan for the provision of municipal services. While the services are being provided, lenders have been reluctant to lend without a long-term agreement In place. The League Group continues to dispute with the band and has withheld property taxes in the dispute; and
(b) the Colwood Development is a complex development that requires a large, stable funding source in order for the development to be completed. While the League Group has been able to secure relatively expensive ‘band-aid’ solutions, a construction financier is required. Due to the scale and the factors set out above, progress on the financing of the
Colwood Development has been delayed. IGW LP is a major lender to the Colwood Development
60. Finally, the growth of the League Group has been exponential and greatly in excess of my expectations. The result has been that the League Group has outgrown its current corporate structure(which has become too complex) and its project-by-project funding model.
61. The result of the above is that the League Group no longer has sufficient cash, and has ceased meeting its obligations as they become due in the ordinary course of the League Group’s business.
I wonder if this will end League’s legal action against me and the 11 other people who were concerned about their financial stability?