A Winnipeg real estate investment trust with more than $200 million in liabilities said it's down to one trustee and that its outside administrator has quit providing most services after shareholders voted down a proposal to wind up its operations
The Lanesborough Real Estate Investment Trust that trades on the TSX Venture Exchange said it expects its units will soon be delisted, too.
"LREIT will no longer be making ongoing public disclosure, including filing financial statements, in accordance with applicable securities laws or paying the fees of the TSX Venture Exchange," the company said.
It added that "management of LREIT expects that LREIT will likely be issued a cease trade order with respect to trading in its securities by The Manitoba Securities Commission or other securities regulatory authorities in the near future."
The REIT's portfolio has shrunk to 11 properties and vacant land. LREIT had planned to sell those assets to a company controlled by insider Arni Thorsteinson for $41 million.
With the only benefit to unitholders now being the ability to record a capital loss, a majority of unitholders voted down the deal on June 27.
Thorsteinson, who founded LREIT, now is the REIT's sole trustee following the resignations of Charles K. Loewen and Earl S. Coleman, who served as independent trustees.
Thorsteinson is also a principal at Shelter Canadian Properties, the manager and administrator of Lanesborough. Shelter will no longer provide most administrative services due to the inability of Lanesborough to pay amounts owed to Shelter, the REIT said.
LREIT's liabilities of $201,055,897 include $159,169,309 owed to 2668921 Manitoba Ltd. and Shelter Canadian Properties, two Thorsteinson-controlled companies.