TSXV:LRT.UN - Post by User
Comment by
Winnipeg40on Nov 03, 2010 3:15am
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Post# 17649498
RE: News..Completes $11.2 million sale
RE: News..Completes $11.2 million sale A $300,000 gain on a property held since 2005 with not even enough cash to pay off the second mortgage bond. What a cleverly worded press release. As the Trust has paid out in distributions and had losses cumulatively in excess of $55 million dollars since inception, it has only been second mortgages and debentures that has kept them going. When a property is sold that can not even pay off a second mortgage on it, it is worrisome. Below one can see that they had a 6.78 Million dollar second mortgage with 7 Million assumed by the purchasor. That would mean that the property was indebted for 13.78 Million and sold for $11.2 Million....But Arni is still driving the Jag..no worries
As required by the bond indenture for the 9% second mortgage bond due on March 10, 2015,
the net cash from the sale will be used to prepay a portion of the $6.78 million of principal
outstanding under the second mortgage bond. The prepayment will occur in December 2010.