PWC reports on League can be found here:
http://www.pwc.com/ca/en/car/leagueassets/index.jhtml
The latest 4th report can be found here:
http://www.pwc.com/en_CA/CA/car/leagueassets/assets/leagueassets-131_111913.pdf
It shows the amount of money raised from investors as exceeding $350M with $60M of net assets after deducting all secured debt if sold in “an orderly process”, plus various liens, unsecured creditors, property taxes, employees’ expenses on their personal credit cards and restructuring costs. Unclear is if IPU holders will get the same or a lower priority as unsecured creditors such as lien holders, construction trades or cities owed property taxes. Even if IPU holders get the same priority, investors will receive pennies on the $ at best.
It shows “development projects” netting over $50M which seems rather high given that Colwood will likely sell for far below $10M due to low demand for commercial and condos in Colwood, and the state of the semi-finished, now rusting, concrete garage.
Secured creditors have submitted a proposal to take League’s control from PWC. If this will be approved by the courts is unknown right now, but nonetheless secured creditors will likely be made whole, ahead of unsecured investors, employees’ credit cards, trades, liens or cities that are owed substantial taxes. This letter and comments are here: http://landlordrescue.ca/league-mess/
IPU and equity investors need to assume they will receive nothing once the secured creditors, the DIP loan and the receiver and various lawyers take their share of generous fees.
It will be a question of time when the BC Security Commission and RCMP will get involved here due to gross misrepresentation and securities fraud.
Investors: feel encouraged to forward your personal story, with details on the sales rep and their lies to you, to the media, the BC Security Commission, the RCMP and Fasken (the court appointed investor representative).
leaguereviewed 
KPMG should be liable here. They are supposed to verify the books for shareholders. They are not supposed to be accomplices for corrupt management. Ernst and Young performed the same role for Sino Forest (huge scam) and those investors lost EVERYTHING!! EY was fined over $100 million but they just go on and on suckering people in with their high fees.
Yes KPMG ought to have flagged the huge loans as uncollectable or written down substantially. A gross oversight. Negligent.
Gant and his new sidekick are so deluded it is frightening. This made me physically ill:
Following a heavy court schedule this week and what has been, at times, an acrimonious relationship with lenders, Parkinson said he was a little surprised. “I don’t think we anticipated we would have such a strong reaction from our secured lenders,” he said. “We have been working hard with the various lenders to get to this compromise position and, frankly, I thought we would get here more easily and in a quicker manner.
“It’s been a bit of a fight and that for me has been a bit of a disappointment in that it has taken as much time and effort.”
Gant echoed that sentiment, noting the League group always believed secured lenders had plenty of security, and that League saw the creditors act process as a means to deal with the complex structure of the company and improve its debt position. “It was amazing to see the push back from lenders,”
whats “amazing” is what planet does GANT think hes living on? Also Why would I give 2 shits about any secured lender?? they in no way would ever assist me in any recoveries
should there ever be any? yes Gant and his sidekicks are delusional for sure
Push back from lenders? Just wait sonny boy. You don’t know what push back is.
Can anyone explain to me why investors should take further interest in the proceedings since Colliers concluded there is not enough equity to compensate investors?
Investors need to put the pressure on two entities: KPMG and BCSC. I am convinced even more now that League’s activities were criminal, and that KPMG colluded with them, and BCSC is responsible for investor’s losses. But, then, I have been singing that tune for years.
What exactly do you want KPMG and BCSC to do? (I believe BCSC and the Dept. of Justice attend the CCAA proceedings.)
Jeremy. In the above sentence I put the onus for action on the investors. I don’t expect anything from BCSC or KPMG. I think that you don’t comprehend much of what is going on here.
Jeremy??please wake up here will you!!! what we expect is that BCSC and KPMG compensate the investors because if either one of those outfits would have done their jobs correctly ESPECIALLY the BCSC
most all of us would have not invested in the league (at least not to the degree we did)and thus would have not lost the huge money some of us have lost
There were many warning signs as its turning out that either one or both of these identitys should have identified and warned people
To Paul Dunbar: For KPMG and BCSC to compensate investors, investors will have to win a lawsuit against those two entities. Public pressure will do nothing.
To ajmbconsulting: What don’t you think I comprehend about this case? Individual investors don’t have the resources to take legal action against KPMG, BCSC, or League. Now that Colliers has revealed there is no compensation for investors, there is nothing for investors to do but move on.
If you want to move on, please do. There are many people who cannot afford to ‘move on’. They will lose their homes, and will have to move out.
I know what we would have to do but your the one whom asked”What exactly do you want KPMG and BCSC to do?” and I simply replied we want them to compensate us
I more than realize this will not happen
Hello everyone your going to just love this quote from the PAR web site written by Pat Miniutti.QUOTE:Recently the League Group, the external manager of the Partners REIT, downsized its’ own real estate activities making available professionals with a depth of experience in real estate and the management of public companies.
what an idiot “downsized” Making available “professionals”
what kind of world do these idiots(PM) live in??? saying ridiculous things such as this
Bit of a bad joke hiring JP as CEO.He knew all about the league and what they were up to long before the collapse and now he get,s paid big bucks with basically our money which we will never see gain
You shouldn’t stop with the BCSC and KPMG. What about Royal Roads University who promoted and sponsored the League ethics and leadership conferences? What about the Mayor of Colwood and Colwood City council who promoted the development and tried to tiee in a sewage deal.
I agree with the Royal Roads University being at some fault for not assuring people are ligite when they allow showcasing as ARRUDA did But I certainly don’t find any Blame
on Colwood mayor or councill
League group of companies founders Adam Gant and Emanuel Arruda were removed from their positions by court order Friday as part of a compromise reached between League, its secured creditors and investors that will see the company continue through a restructuring process.
Gant, the chief executive, and co-founder Arruda were replaced by League chief financial officer John Parkinson, who will act as interim CEO. Parkinson has also been charged with finding a replacement CEO over the next two months.
In an interview, Gant wouldn’t talk about leaving the company he founded, but admitted parts of the restructuring process under the Companies’ Creditors Arrangement Act have been “very emotional and trying.”
“I said at the start that nothing was sacred, we just want to make sure we get the best value out of this for investors,” said Gant, who will remain as a consultant through the creditors act process and remains as chairman of League Assets Corp.
Parkinson said the court’s approval of the compromise solution establishes a solid platform for the next phase of League’s restructuring. The company was initially granted protection Oct. 18.
“It allows us to move forward in the right way. What we are keen to do is maximize the value for investors and I’m comfortable this process allows us to do that,” Parkinson said. He noted they have the flexibility of choosing which assets to sell and when to sell them, rather than having to put them on the market “on a fire sale basis.”
The process that was approved by the court on Friday extends creditor protection until June 28, and approves $10 million in debtor-in-possession financing to allow day-to-day operations until then.
The deal was hatched between League, the majority of its secured creditors and the representative counsel acting on behalf of investors as an alternative to what was expected to be expensive and distracting litigation and a possible receivership process.
The order expands monitor PricewaterhouseCoopers’ role to include overseeing a new CEO, taking possession of all money owed to League group and its bank accounts, overseeing all payments over $5,000, reviewing and investigating the books and conducting a review of the 65 League entities not involved in the creditors act process.
The process will establish an orderly sale of assets, maintain League’s ability to put forward a restructuring transaction and gives League breathing room with respect to the Capital City Centre project in Colwood.
Gant said League now has six months to find a way to get the Colwood Corners project started again after the site was idled in July due to lack of construction financing. He hopes they can find a development partner or a means of refinancing the project to at least finish the first phase of what was to be a $1 billion build-out.
“Our goal is to figure out the best way to get construction going and ensure the maximum financial value,” Gant said, noting they have six months before any of secured lenders can act to realize their security on the property.
According to the monitor’s report, the breathing room was granted because the estimated value of the property in a sale would be less than the amount owed to secured creditors of the property.
The court also approved the sale of League’s holdings in Partners REIT. That sale to McCowan and Associates Ltd. for $27.1 million will pay $17.4 million to Firm Capital and nearly $10 million to Timbercreek which holds a security tied to those holdings of $13.5 million.
Following a heavy court schedule this week and what has been, at times, an acrimonious relationship with lenders, Parkinson said he was a little surprised. “I don’t think we anticipated we would have such a strong reaction from our secured lenders,” he said. “We have been working hard with the various lenders to get to this compromise position and, frankly, I thought we would get here more easily and in a quicker manner.
“It’s been a bit of a fight and that for me has been a bit of a disappointment in that it has taken as much time and effort.”
Gant echoed that sentiment, noting the League group always believed secured lenders had plenty of security, and that League saw the creditors act process as a means to deal with the complex structure of the company and improve its debt position. “It was amazing to see the push back from lenders,” he said.
in the 6th report to the court pwc states that gant will stay on the board of trustees for lac ARE YOU KIDDING ME? the average guy gets it again, pass the lubricant and bend over this is such a waste of time
That is the good news. Gant WILL BE HIRED BACK AS A CONSULTANT!!!! In addition, John Parkinson, the man behind the public company stuff, will be the new CEO and League gets a 7 month extension to continue to run the business as they did before!!!!
I read that too, maybe the monitor needs a person to consult with them on how to best steal from investors. I’m sure that Gant could come up with a way for everyone to send him 10% of their pensions.
I wonder how this deal could come about???
approved the sale of the block of shares in the Partners REIT held by IGW Public Limited Partnership for a total of $27,110,041.00, or $7.00 per share.
open market there around 6.00-6.10
Well Paul, I’m not sure how much you know about the stock market but I can assure you that accumulating a large block of shares like that takes a long time and pushes the price of the shares up. The market is driven by how many people want to sell shares at the moment, if you always want to buy or enough to accumulate 14% of all the shares that is difficult and expensive. Look at when Gant went looking for more shares this spring the stock went up to $8.
The reason why McCowan wants those shares is because they want a controlling interest in Partner’s REIT. Once you own enough shares the company starts having to listen to you.
yes your right looking at that way.It would take a bit of work to buy that many shares on the open market for sure
Talk about gross misrepresentation – Adam Gant and Emanuel Arruda did exactly the opposite of what they claimed back in 2007 and onward. Read this article. It’s gross.
INTER-GENERATIONAL WEALTH
Are you doing what it takes to secure your family’s wealth across generations?
By BE Ad Features
Published: 09/21/2007 – Vol. 7, No. 19
Think fast: Retirement is fast approaching, your mutual funds are stagnant at best, the Hon. Jim Flaherty just took a big bite of your investment cash flow thanks to his recent income-trust announcement, and you just don’t have the stomach to risk any more of your family’s wealth playing the stock market. What do you do now?
You need a safe and reliable investment for your family, one you know will provide tax-efficient income now and through your retirement, and one that won’t run out even after you do.
Historically, successful investors have relied on real estate, more than any other investment, to provide safe, reliable, and sustainable returns for their families. With the steady appreciation of commercial and residential real estate in so many Canadian cities, is it any wonder?
League Assets Corp., a real estate investment firm based in Victoria, B.C., thinks it’s got your pre-retirement and retirement needs covered. In fact, League’s managers have got their eye on something far surpassing that: They aim to produce, protect, and maintain your family’s wealth inter-generationally. And they do it through real estate based investments.
Intergenerational Wealth is the trademarked term for the integrated services that League provides its Member-Partners. Indeed, it’s this framework in combination with its philosophy of “member-partnership” that sets it apart by putting investors in charge of their family’s wealth.
“My partner Adam Gant and I designed League specifically to find, acquire, improve and manage the most profitable real estate properties anywhere, and to share these opportunities in member-partnership with other like-minded investors—no matter where they call home,” says chairman and Chief Operating Officer Emanuel Arruda, who started League in 2005 with Gant, the corporation’s ceo. “Through League, we do for our member-partners what we do for ourselves.”
League manages a private Real Estate Investment Trust (REIT) with real estate assets now totalling more than $100 million, and growing steadily. The REIT is targeted to yield a total return of at least 15 per cent compounded annually. But even more impressive is its cash-distribution rate (currently at 9.8%); the highest REIT distribution rate in Canada – two-per-cent to four-per-cent to higher than any publicly traded REIT. And, since League’s REIT is private, it doesn’t succumb to the fluctuations of the stock market. For many, that’s a welcome relief.
For those earning a paltry four per cent to five per cent from a GIC, or a fully taxable nine per cent to 11 per cent from a mortgage investment company, League’s is a most welcome alternative.
League also offers a way to turn an under-performing RRSP investment into a stable and tax-efficient source of monthly income for you and your family – without de-registering your funds and triggering a big tax bite. It’s an opportunity to have something you can use now while your rrsp continues to grow.
Here’s another plus: League does not take any cut or “load”off the top.
“Most syndicators will either sell their own properties to the pool to skim off some profit at the front end, or take 15 to 20 per cent of ownership for putting the deal together,” says Gant. “That means if you invest $100,000, only $85,000 is actually working for you. We believe investors deserve better, so we instituted our Investment Guarantee.”
Instead of taking a cut or “load” off the top, League management earns 20 per cent of the increase in the value of the properties it buys. That motivates League to buy properties that are not only doing well to begin with, but ones that have potential for significant increase in the value once physical and management improvements are made.
The workings of the investment are simple. League buys commercial, industrial, and residential properties, such as shopping plazas and apartment buildings, at below market value (typically because they are a bit tired looking or have some vacancies), improves the buildings and grounds, finds tenants for the vacant spaces, and raises rents in line with the building improvements.
The profit (minus a prudent amount to keep in reserve) is distributed monthly to the member-partners in proportion to their investments.
As the value of the buildings and rents increase, so do the members’ monthly distributions along with the value of their investment.
Since the Canada Revenue Agency treats the cash flow as “distribution,” it is taxed more favourably than income from interest or dividends.
While enjoying your monthly income, the value of your investment continues to grow as the value of the properties in the REIT increases. And, since it is real estate, this increase is treated as capital gains, so only 50 per cent is taxed, but not until you sell your units. Of course, if you’re holding the REIT inside your RRSP, then there is no tax to pay until you start cashing out the registered plan.
“League has no sales-people,” says Arruda. “We don’t need them: People are referring investors to us all the time.”
Among them are mortgage brokers who can see the equity in their clients’ homes going to waste. With mortgage rates still at historic lows, and League’s distributions providing a steady 10 per cent plus, the income from the investment is more than enough to cover the payments on a home equity mortgage and put additional cash in members’ accounts each month.
One thing League makes clear from the beginning: It doesn’t gamble. Thanks to its investment guarantee, it’s not in its interest to do so.
As you would expect from a company focused on creating Inter-Generational Wealth, League’s managers think safety and they think long-term.
League Assets has the contacts and the good reputation to find properties they can make profitable. “For example, one shopping centre had 14,000 sq. ft. of vacancy when we started negotiations, and before we closed the deal we’d already found a tenant to fill 11,000 sq. ft.,” says Gant. “Another property came with a spare parking lot. Before we closed, we found a buyer for it, which took about $1 million off the purchase price of the building we wanted. So the day we closed, we bought a higher cash flow for a lower price. Then we went to work on making improvements.”
So with returns like these, a guarantee like theirs, and a reputation for doing the right thing by their investors, how do League’s managers accept new members without sales people? Simple. They wrote a brochure called The Blue Book of Real Estate Syndication.
It lets prospective members learn for themselves everything they need to know about real estate investing and League’s services. Read the book and, if you like it, call League.
“We’re looking for people who share our goals. And we hope that they are motivated enough to read the Blue Book to determine if League is right for them,” says Arruda.
For information on how the League reit can boost your monthly income while helping you achieve inter-generational wealth, and to get a free copy of the Blue Book, visit http://www.league.ca or call 1-877-772-8836.
Yes we all know ARRUDA and GANT are despicable lieing SCUMBAGS
faskens are not looking for any evidence about anything? this is not a trail and their not trail lawyers.This is a CCAA soon to be BK situation. they will oversee the legal aspects of the liquidation of the league. that’s it
Gross misrepresentation is right – I presume Faskens has reviewed all the various O.Ms and Investment Summaries, including this nonsense, and can use them in evidence. Not that it will really make any difference, we’re all dead ducks.
Anyone know where Arruda is? Somewhere in South America?
PIGS at the trough just like Wallin and Duffy
READ: Travel and meals for example $109,312