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Traveller's Inn bankruptcy


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#101 spanky123

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Posted 19 July 2009 - 09:35 AM

If nobody tells the TC to stop running their ads on Saturday then they keep running them. Doesn't mean that the jobs are still open or available.

#102 riversticks80

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Posted 22 July 2009 - 08:48 AM

Just saw this and thought I would post it. The only way John Asfar is able to stay in business is to refinance his mortgages. He refinances about 6 or 7 different properties a year. The reason he has been doing so poorly the last year is because none of the banks would refinance his mortgages.



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.



#103 spanky123

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Posted 22 July 2009 - 09:58 AM

So John claims that despite the fact the BMO has foreclosed on his Queens Ave property, he has found someone else willing to refinance the same property for a lower interest rate?

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.

#104 Caramia

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Posted 22 July 2009 - 08:40 PM

Folks - Remember while exchanging the local hot gossip this is an open forum, if you are posting something that is likely to get you (or more importantly, us) sued, don't.

Unless you would like to include your real name and contact info, of course!

:P

As you were...
Nowadays most people die of a sort of creeping common sense, and discover when it is too late that the only things one never regrets are one's mistakes.
Oscar Wilde (1854 - 1900), The Picture of Dorian Gray, 1891

#105 riversticks80

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Posted 27 July 2009 - 08:46 AM

The newest information I've heard is that the employees at the Travellers Inn Express and Extended did not get paid on Thursday like they were supposed too. Both those hotels have been taken over by another company as of July 21st. Now, I have no idea if they are just taking over just for a few months or if they have been sold. All I know is that John is refusing to pay these employees for work they have performed from July 1st - 20th.

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.

#106 spanky123

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Posted 27 July 2009 - 12:02 PM

In fact if you are not a party to the discussion then it is gossip! Doesn't mean that it isn't true just that the information has passed through a few "hands"

#107 riversticks80

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Posted 27 July 2009 - 02:53 PM

Yes, you are right spanky. I never thought of it that way.

#108 spanky123

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Posted 27 July 2009 - 03:36 PM

It has been said here before but if you are an employee and are not being paid then you need to contact the HRDC and employment standards right away. You can collect EI if you quit under such circumstances. You are not obligated to continue working for no pay waiting to be laid off.

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.

#109 riversticks80

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Posted 28 July 2009 - 08:44 AM

My friend went to the Employment Standards board yesterday to lodge a complaint against Travellers Inn for not being paid. She was told they would try to help her but they can't do anything for her if the company goes bankrupt. Is that true? I think I read somewhere if a company goes bankrupt then the employees are the last ones to get paid.

#110 spanky123

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Posted 28 July 2009 - 09:59 AM

Actually employees are the first to be paid.

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.

#111 AnonAnnie2

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Posted 31 July 2009 - 04:58 AM

Grant Thornton Ltd. has been appointed as receiver-manager for the company heading up the Vacation Inn and Convention Centre on Douglas Street, part of the Traveller's Inn group of companies.
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.

#112 spanky123

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Posted 31 July 2009 - 07:10 AM

Off in the distance I hear a fat lady singing.

#113 riversticks80

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Posted 31 July 2009 - 07:37 AM

LOL!! Yes, I think I hear here singing too!! I just found out yesterday about Vacation Inn being in receivership but I've known for a couple of weeks now that Express and Exteneded was in receivership. It sure took the newspaper long enough to get the story out. I suppose the next couple of weeks should be interesting ones for my friends at Travellers Inn.

#114 spanky123

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Posted 07 August 2009 - 02:43 PM

Word is that Asfar had until the 4th to present a proposal to creditors. Anyone know the outcome?

#115 VicHockeyFan

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Posted 08 August 2009 - 07:07 AM

Oh Lord, check today's TC for proof positive that Asfar has gone a bit wonky.

#116 spanky123

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Posted 08 August 2009 - 07:09 AM

Thanks.

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!

#117 Phil McAvity

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Posted 08 August 2009 - 07:10 AM

Traveller's owner to sell assets

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.

cjwilson@tc.canwest.com

© Copyright © The Victoria Times Colonist

http://www.timescolo...3569/story.html


How does Asfar know he'll find a buyer in the next six months?
In chains by Keynes

#118 weirdie

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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.


Uh...

#119 spanky123

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Posted 08 August 2009 - 08:27 AM

We should start another petition. If John Asfar promises to leave Canada and never come back then the CRA should forgive his debts :-)

#120 VicHockeyFan

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Posted 08 August 2009 - 08:31 AM

I guess that lower-interest loan never came thru for the Queens properties...:rolleyes:

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