AlbertC
Superstar
The digging continues:
Feb 25, 2020
Feb 25, 2020
Ms. Athanasoulis alleges that Cresford projects have relatively low equity commitments from Mr. Casey. One of the Cresford projects mentioned by Ms. Athanasoulis is the YSL Residence at 385 Yonge St. Property records show a $100-million loan from private lender Timbercreek Mortgage Servicing Inc., and also a lien on the property from GFL Infrastructure Group Inc., for unpaid shoring work.
Asked about his company's connection to the YSL project, Timbercreek Financial chief executive officer Cam Goodnough said: "We are aware of the allegations and are monitoring the situation as part of our ongoing portfolio management process. We cannot comment on allegations/matters that are unproven and before the court."
Ms. Athanasoulis alleges Otéra Capital Inc. - the real estate finance subsidiary of Caisse de dépôt et placement du Québec - was intended to come on as one of the finance partners for a $623-million construction loan to build YSL. Otéra is already a partner on a $817-million construction loan made in 2018 for Cresford's 33 Yorkville project.
"Otéra is no longer involved in this specific project [YSL]," Amandine Michaud, director of communications and marketing for Otéra, said. "Otéra is aware of the lawsuit. We find allegations worrisome and we are closely monitoring the situation. However, out of respect for the judicial process, Otéra will not comment the alleged facts."
In their statement of defence and counterclaim, Casey and Cresford seek $17.5 million against Athanasoulis, alleging among other things, breach of contract, breach of fiduciary duty, mismanagement and a yet-to-be disclosed amount for defamation of Casey.
In breaching her fiduciary duty to Cresford and Casey, Athanasoulis “intended to create a situation that would force Casey to sell Cresford assets at liquidation value” to a potential purchaser of her choice, the court filing says.
Rather than Casey being the sole person in control of all the key financial decisions of the company, Athanasoulis as COO was closely intertwined with Cresford’s financial machinations, the countersuit says.
For instance, since August 2017, Athanasoulis continued to play a “key role” in securing equity investments required for the 33 Yorkville and YSL projects and was “therefore familiar with the equity requirements and source of funds being applied to meet the equity requirements of the lenders,” the countersuit says.
The countersuit says Athanasoulis wasn’t constructively dismissed, but resigned from Cresford Jan. 2 this year after threatening to do so if an agreement to sell the company to the purchaser wasn’t reached. By resigning she carried out the threat, the countersuit says.
Athanasoulis says in her claim that Casey repeatedly said he had access to “significant funds” and she believed he would use some of his wealth to solve the company’s cash problems.
But last summer Casey told Athanasoulis that he had substantial mortgages registered against his cottage and his home, that he required between $4 million and $5 million a year to maintain his lifestyle, the statement of claim says.
The court filing goes on to say that in February 2019, when Cresford was “desperate for cash,” Casey spent about $750,000 to buy a house for his son — money, Athanasoulis says in her claim, that should have been used to pay creditors.
But the countersuit says that when Cresford moved to a new office near Yonge Street, south of Bloor Street, Athanasoulis as COO directed the purchase of furniture and decor items worth about $400,000, including a $40,000 mirror.
“Once again there was no suggestion from Athanasoulis of any impending financial difficulties,” the suit says.