Vancouver developer Coromandel no longer seeks protection from creditors

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Vancouver developer Cormandel Properties said it is no longer seeking protection under the Business Creditor Settlement Act after reaching agreements with its lenders.

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The company said in a statement Friday that all lenders that have filed foreclosure petitions have postponed their hearings.

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According to court documents, all of the foreclosure petitions have generally been stayed, with the exception of two that will be heard in court on March 20.

Coromandel, which has 16 development projects mostly in Vancouver, filed for creditor protection on February 6.

He said then that he was struggling financially, owed around $700 million on his projects and was seeking respite through CCAA proceedings so he could make arrangements with his lenders.

At the time, Coromandel CEO Jerry Zhong, also known as Zhen Yu Zhong, agreed to remove several properties from his initial creditor protection application, but six properties remained part of the proceedings.

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These included Georgia Court, a residential building in Chinatown, and Pacific Burrard, an office building, as well as several sets of parcel lots zoned for single-family homes, known as Nanaimo 22, Slocan 29, and Alberta 40. The proceeding also included Wilmar Estates, a project on Southwest Marine Drive that includes the restoration of a heritage home and five infill homes.

In British Columbia’s Supreme Court on Friday, Coromandel’s lawyers said the company was staying the CCAA’s proceedings.

The two foreclosure petitions that have been stayed later this month are between Richmond-based companies. Responsible Mortgage Investment Corp. and Coromandel’s Nanaimo 22 project and its Wilmar Estates project. Accountable MIC is a company that allows individual investors to pool their funds and invest in residential or commercial mortgages.

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Accountable Mortgage Investment said in court documents that the Coromandel-related companies involved in the Nanaimo 22 project agreed in February 2022 to repay $16 million plus interest for it. He said Coromandel-related companies involved in the Wilmar Estates project extended an agreement in October 2022 to pay $24 million plus interest.

Before Coromandel suspended CCAA proceedings, a Vancouver contractor called Rely Construction had filed documents on March 7, alleging that Coromandel had quickly agreed to pay them a reduced amount of $682,500 for work on Wilmar Estates, but failed to do so. The filing included claims that have not been proven in court.

With a report by Dan Fumano

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