Parq Vancouver, with its curvy, copper-tinted glass jewel of a building beside B.C. Place Stadium, opened in September 2017 in what were splashier times. It was billed as the “largest private development in B.C.” with “world-class” everything: two luxury hotels, convention spaces, an outdoor space and the city’s biggest ballroom.
They never did secure another partner at the time and instead, at various stages, each put in more money in return for new shares.It’s a private company that doesn’t disclose financial information, but one of its co-owners is the publicly listed, Toronto-based holding firm Dundee Corp. In March 2019, Dundee reported that Parq lost $153 million in 2018. It has cited the impact of B.C.’s anti-money-laundering rules, ushered in a few months after Parq opened, but also training and marketing costs.
Now, a closer look at the size and cost of the initial financing taken for Parq, and two new, smaller loans it has sought to keep up with the debt payments, begs these questions: Is the project adjusting to meet changing conditions, as companies regularly do? Or, is it headed for debt distress? There is also a second lien loan of $150 million US that is due in December 2021, which carries an even higher rate of LIBOR, plus 12 per cent for a total rate of 14.75 per cent.
In September 2018, Dundee said the owners of Parq took an unsecured convertible loan for $20 million from an “unnamed industry investor.” The agreement had Parq issue a promissory note for the $20 million that could be convertible, at a later date, into equity. The proceeds of the loan were used “to make scheduled debt payments and to provide additional working capital for Parq Vancouver.”
What The laundry mat is in trouble?
Yes it can.
Certainly hope so
Hahah a year and a half ago. Hell no