Bazis In Default

Giuseppe Valiante, National Post

Lawyers rep­re­sent­ing the owner of 1 Bloor reached a deal with cred­i­tors yes­ter­day, hold­ing off receiver­ship pro­ceed­ings on the land­mark devel­op­ment until mid-August.

Bazis Inter­na­tional has not made pay­ments since Decem­ber on the $46-million loan it received to build an 80-storey tower, what was to be the largest res­i­den­tial build­ing in Canada, at the south­east cor­ner of Yonge and Bloor streets.

A court order that was agreed to by lawyers from both sides will be issued today, out­lin­ing what Bazis’s North Amer­i­can chief Michael Gold can do with the prop­erty until court resumes on Aug. 18.

Mr. Gold’s cred­i­tors, a num­bered com­pany listed in the state­ment of claim, are demand­ing repay­ment of the ini­tial loan, plus $1.2-million in struc­tur­ing fees and accrued inter­est. They are look­ing to appoint a receiver who will auc­tion off the assets, esti­mated at around $50-million.

Mr. Gold report­edly blamed the loan default on the poor econ­omy, and said he was being taken to court by busi­ness­men who are using pri­vate infor­ma­tion he gave them to take con­trol of the land.

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