Walton Westphalia Development Corporation Announces That its Senior and Mezzanine Lenders Have Granted 30 Day Grace Periods on Their Loans
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Walton Westphalia Development Corporation (the “Corporation”) announces that the senior lender (the “Senior Lender”) under its senior loan (the “Senior Loan”) and the mezzanine lender (the “Mezzanine Lender”) under its mezzanine loan (the “Mezzanine Loan”) have granted 30 day grace periods from the maturity of the Senior Loan, which is October 15, 2016, and from the maturity of the Mezzanine Loan, which is October 21, 2016, to allow discussions between the Corporation and the lenders to continue regarding more formal extensions of the maturity dates of their respective loans.
The Corporation’s wholly-owned United States subsidiary (the “US Sub”) and Walton Westphalia Europe, LP, being an affiliate of the Corporation and the other co-owner of the Westphalia property (“WWE”), have borrowed money under the Senior Loan and the Mezzanine Loan. The amount outstanding under the Senior Loan as at September 30, 2016 was US$23,222,225 and under the Mezzanine Loan as at September 30, 2016 was US$11,047,600.
The Corporation has requested the formal extensions of each of the Senior Loan and the Mezzanine Loan for a period of time that will allow sufficient funds to be raised by a third party immigrant investor fund set up under the US federal “EB-5” program to be, as previously announced, borrowed by the Corporation to pay off or significantly pay down those loans.