Traveller's Inn bankruptcy
Posted 19 July 2009 - 09:35 AM
Posted 22 July 2009 - 08:48 AM
Fresh financing for Traveller's Inn after $4-million default ruling
Owner expects new first mortgage after $4-million default ruling
By Carla Wilson, Times ColonistJuly 22, 2009 6:39 AM
Traveller's Inn owner John Asfar and his company, Blanshard Manor Holdings Ltd., have defaulted on a $4-million mortgage for a Queens Avenue property, the Supreme Court of B.C. has ruled.
However, Asfar said yesterday that new financing is expected. "The BMO [Bank of Montreal] first mortgage at 760 Queens is being refinanced with a new first mortgage the first week of August at a lower interest rate," he said in an e-mail.
As of April 8 of this year, the amount to be redeemed to the Bank of Montreal was $4.413 million, Justice Robert Johnston said in a decision released Friday. Interest accruing from April 8 is $618.63 a day, and the date for redemption is Aug. 31, the decision said.
On July 3, the 21 companies making up the Traveller's Inn group of companies filed their intention to seek creditor protection. Most of the hotels are within Greater Victoria and one is in Cowichan Bay.
Trustee Ken Glover said the cash flow for the group is anticipated to be positive for the period he examined, ending Oct. 13. Glover was called in by Asfar to assist with creditor protection.
"Based on my review, the cash flow for the group of companies is positive over the next three months," Glover said. On July 13, Glover filed cash-flow information with the Office of the Superintendent of Bankruptcy Canada.
The Queens Avenue mortgage matter would not affect the cash flow if Asfar is able to obtain refinancing before the end of August, Glover said. But if that does not occur, that property could then be sold by the bank, he said. "It just means that it is listed for sale. It can still be operated."
Asfar continues to operate the Traveller's Inn group, which has slightly more than 160 employees, Glover said.
Glover is working on developing a proposal to creditors. That proposal is due July 31, unless an application is made to the courts to extend it by 45 days.
A long-standing dispute between Traveller's Inn and the Canada Revenue Agency saw the federal government garnishee revenues. Garnishees over the daily room rentals have been lifted while others, over commercial rents, such as a restaurant leasing space within a hotel, have not, Glover said.
Posted 22 July 2009 - 09:58 AM
I guess stranger things have happened but my guess is that BMO will own the property come August 31st and then they will go after him for the balance owing.
Posted 22 July 2009 - 08:40 PM
Unless you would like to include your real name and contact info, of course!
As you were...
Oscar Wilde (1854 - 1900), The Picture of Dorian Gray, 1891
Posted 27 July 2009 - 08:46 AM
Also, anything that I have posted is not gossip, it's the truth. I have a couple of friends who work at Travellers Inn and I also worked there for almost 2 years.
Posted 27 July 2009 - 12:02 PM
Posted 27 July 2009 - 02:53 PM
Posted 27 July 2009 - 03:36 PM
When a company is sold the obligations to the employees follow it. You cannot simply sell the assets or shares and then try to avoid paying monies owed.
Posted 28 July 2009 - 08:44 AM
Posted 28 July 2009 - 09:59 AM
Directors and officers are liable for Government remittances but not employee wages if the company goes under. Best bet is to get in the EI lineup.
Posted 31 July 2009 - 04:58 AM
The chartered accountant and management consulting firm has also been appointed receiver-manager for two other Traveller's Inn properties -- Express Manor Holdings Ltd. with a hotel at 626 Gorge Rd. East, and Rock Bay Manor Holdings Ltd. with the 2828 Rock Bay Ave. hotel, court documents say. The Vacation Inn at 3020 Douglas St. is represented by Tally Ho Motor Hotels Victoria Ltd.
In each matter, Madame Justice Victoria Gray of the B.C. Supreme Court decided July 20 that Grant Thornton can market and sell the properties, court documents said.
The receiverships began after an application from Prospera Credit Union, which holds mortgages for the three hotels, according to the documents. Prospera told the court it is owed $3.3 million by Tally Ho, and $979,989 by Express. Rock Bay failed to make regular payments on a $1.1-million loan negotiated in 2005, a company representative said.
The Victoria-based Traveller's Inn group of companies is owned by John Asfar. On July 3, Asfar's 21 companies forming the Traveller's Inn group each filed its intention to seek creditor protection. All but one of the hotels is in Greater Victoria. The Oceanfront Grand Resort is in Cowichan Bay.
In 2004, Asfar bought the 51-room Vacation Inn, previously named the Tally Ho, increasing the number of Traveller's Inns properties to 14. Asfar could not be reached for comment yesterday.
The Vacation Inn is home to the 310-seat Murph's Pub, one of the largest pubs in the region. The hotel also has a convention facility.
Trustee Ken Glover is developing a proposal to creditors by today's deadline with the federal superintendent of bankruptcy. "The plan is that the proposal will be filed," he said yesterday.
Asfar has been in a lengthy dispute with Canada Revenue Agency.
Last week, he said new financing was being arranged for his 760 Queens Ave. hotel after the Supreme Court of B.C. ruled that Asfar and his company, Blanshard Manor Holdings Ltd., had defaulted on a $4-million mortgage.
Posted 31 July 2009 - 07:37 AM
Posted 07 August 2009 - 02:43 PM
Posted 08 August 2009 - 07:07 AM
Posted 08 August 2009 - 07:09 AM
The article is hilarious. He has $70M in equity in his properties but can't get anyone to loan him the money he needs to pay his bills!
Posted 08 August 2009 - 07:10 AM
John Asfar says he'll pay off debts and donate millions to charity
BY CARLA WILSON, TIMES COLONIST AUGUST 8, 2009 7:20 AM
The owner of the Traveller's Inn group said he is proposing to fully pay all creditors by selling properties in 21 com- panies.
John Asfar also said he will donate millions of dollars to local charities, and that he plans to leave Canada to concentrate on helping needy people in Africa. "As part of my proposal, I have decided to donate $70 million of my equity in my hotels, commercial and apartment buildings to charity organizations that need them and for government housing," Asfar said in an e-mail. "A few of the hotels and the NOW furniture building/development I will sell to a hotelier and casino operator over [the] next six months." Asfar had earlier been unsuccessful in a plan to build a casino, hotel and entertainment complex at the former NOW furniture store at 2269 Douglas St., but remains optimistic that a casino is possible. The Traveller's Inn group includes 21 companies with 14 hotels and long-stay units. All but one of the establishments is in Victoria. In early July, those 21 companies jointly filed their intention to seek creditor protection. A joint proposal from those companies for unsecured creditors has been submitted to the federal superintendent of bankruptcy, said trustee Ken Glover. Asfar's proposal is to sell the companies' properties within six months, Glover said. Creditors will vote on the plan. If they turn it down, the result is automatic bankruptcy. A meeting for unsecured creditors is set for Aug. 21 at 11:30 a.m. at the City Centre and Convention Centre Traveller's Inn, 1951 Douglas St. Only those with completed proofs-of-claim forms are eligible to attend, Glover said. In these situations, secured creditors are paid first and whatever remains goes to unsecured creditors, he said. A secured creditor has a claim on a particular asset, such as a property pledged as collateral. Secured creditors can act independently of the proposal going to unsecured creditors, who do not have assets pledged as collateral. Appraisals done within the past two years show there would be equity for unsecured creditor claims, said Glover, who has not tallied the total number of unsecured creditors on the companies, or the total amount owing. One secured creditor has taken action. Grant Thornton Ltd. was appointed last month as receiver-manager for three of the hotels in the group on behalf of a credit union. Asfar said that all creditors would be fully paid under his plan. "The fact that I have proposed 100 cents on the dollar, they would be hard-pressed to reject the proposal. And if they reject the proposal it can be amended to address any concerns." All his properties will be sold or donated, he said. Because the hotel-apartment buildings are downtown, the cost of cars and transportation would be minimal for those needing a place to live, said Asfar. Donations would include his own home on Del Monte Avenue in Saanich, he said. Glover said that property is not involved in the Traveller's Inn matter. Asfar said he was born in Nairobi, Kenya, and lived in California before moving to Victoria at age 12. He said that for the past three years he has been working on developing a foundation to help the poor and orphans in Africa. Asfar said he is fed up with Canada's banking and taxation system. "I am now going to help the poor and the people that have been forgotten." He said he's been waiting three years to have a dispute with Canada Revenue Agency over payment of the goods and services tax heard in court. "As far as coming back to Victoria/Canada in the future, I will come back when the government/tax system choose to compliment private sector businesses [to] develop their communities in Canada, rather than doing everything to directly or indirectly destroy them," Asfar said.
© Copyright © The Victoria Times Colonist
How does Asfar know he'll find a buyer in the next six months?
Posted 08 August 2009 - 07:59 AM
John Asfar also said he will donate millions of dollars to local charities, and that he plans to leave Canada to concentrate on helping needy people in Africa.
Posted 08 August 2009 - 08:27 AM
Posted 08 August 2009 - 08:31 AM
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