earlier this week, Vancouver real estate development firm Coromandel is seeking creditor protection, citing financial problems and more than $700 million in outstanding debt.Start your day with a roundup of B.C.-focused news and opinion delivered straight to your inbox at 7 a.m., Monday to Friday.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.
“Nothing that we’ve seen so far is pointing to any kind of systemic or endemic potential for insolvency,” Rapp said. “Most of the folks who are part of our membership, they are acting more conservatively. … They are being a little bit more circumspect, a little bit more cautious. But I don’t see anybody circling the wagons, throwing up white flags all over the place.”
By Jan. 31, eight lenders on six of Coromandel’s properties had issued notices of default and demand letters seeking repayment of $218 million. Coromandel’s Southview Gardens property had the largest number of creditors seeking return of the most money, with three of its lenders demanding $80.5 million.
Some of Coromandel’s condo developments had begun pre-sales, but Gioventu said there is no reason to think any buyers’ deposits could be at risk.