Lanesborough Real Estate Investment Trust V.LRT.UN

Lanesborough Real Estate Investment Trust is a Canada-based real estate investment trust. The investment properties of the Company are separated into three operating segments: Fort McMurray Properties, Other Investment Properties, and Held for Sale and/or Sold Properties. Fort McMurray Properties includes eight properties. Other Investment Properties include two properties. Held for Sale and/or Sold Properties includes sold properties: five properties. The property portfolio of the Company consists of approximately 11 rental properties, encompassing 10 multi-unit residential properties, including the unsold condominium units at Lakewood Townhome.

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Lanesborough Real Estate Investment Trust > Will debentureholders take the poisoned bait?

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Comment by alkhoron Dec 14, 2021 2:27pm

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Post# 34229954

RE:RE:Will debentureholders take the poisoned bait?

I believe the main reason management is converting the debentures is to keep the interest payment on the revolving loan from 2668921 Manitoba Ltd. ongoing. Who owns this numbered company, why it's mainly our old friend Arni Thorsteinson.

Basically, the management of Lanesbourgh REIT are sacrificing the debenture holders and unit holders to save their investment. The companies that have the mortages would be first in line in the case of a bankruptcy, with 2668921 being second but ahead of the debentures. The current asset value of the REIT is $MM128 and the value of the Mortages is $MM161, so in a bankruptcy 2668921 Manitoba Ltd would get nothing. Better to keep the REIT on life support and earn the interest while waiting for the Fort Mac properties to recover in value.

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