Investors in marina quay project sue
By Erin DeCoste - Ladysmith Chronicle
Published: November 08, 2010 5:00 PM
Investors in the stalled Chemainus Quay and Marina Development have filed a lawsuit against the bankrupt private investment company that took their money for the project.
Lawyer John Blair of Borden, Ladner, Gervais law firm in Calgary, said the suit was launched at the end of July 2009 against Shire Real Estate International.
“They are seeking damages,” he said. “The investors put $7 million into Shire and have little or nothing to show for it.”
Legal documents obtained by the Chronicle show Shire owes $7.3 million to a large number of unsecured creditors for the Chemainus Quay project. There are approximately 284 names on the list of creditors for the local project. Shire collected the funds for the project.
Shire Real Estate is also under investigation from the Alberta Securities Commission. The commission has issued an interim cease trade order to prohibit the company from trading in any securities or relying on any Alberta security laws or exemptions. Cease trade orders are used to stop investment activity while the commission pursues allegations. Ernst & Young, Shire’s court-ordered receiver, was unable to comment.
Shire had entered into a memorandum of understanding with Chemainus Quay and Marina developers, Steve Thorpe-Doubble and his business partner Terry Petras to raise the capital needed to start construction.
“We had money raised and never received it,” said Thorpe-Doubble.
Thorpe-Doubble said the project developers are still determining where the money went.
According to court documents, Shire sought and obtained protection from creditors Aug. 10, 2009. There were a series of motions heard by the Court of Queen’s Bench Alberta Dec. 2009 and Jan. 2010.
