Toronto, Ontario--(Newsfile Corp. - April 27, 2023) - Atrium Mortgage Investment Corporation (TSX: AI) today provided commentary on its loan to Stateview in response to recent media reports.
On April 12, 2023, Atrium Mortgage Investment Corporation ('Atrium') and Dorr Capital Corporation ('Dorr') made formal written demand for repayment of a loan to Stateview in the original principal amount of $23,240,000 (the 'Loan'), following the occurrence of events of default including, but not limited to, non-payment of interest due on April 1, 2023.
Atrium's investment in the Loan represents the most senior ranking $17,800,000, with the balance of the principal amount subordinate to Atrium's interest. The Loan is secured by a parcel of land proposed for development of a townhouse project in Markham, Ontario (the 'Property').
Atrium and Dorr have acted expeditiously and have commenced court proceedings for recovery of the Loan and for the appointment of a receiver to control and market the Property for sale. Atrium does not consider its investment to be impaired and has no other loans outstanding to Stateview or its affiliates.
While Atrium does not normally comment on individual loans, Atrium wanted to clarify this situation given recent media attention surrounding the Stateview companies.
Canada's Premier Non-Bank Lender™
Atrium is a non-bank provider of residential and commercial mortgages that lends in major urban centres in Canada where the stability and liquidity of real estate are high. Atrium's objectives are to provide its shareholders with stable and secure dividends and preserve shareholders' equity by lending within conservative risk parameters.
Atrium is a Mortgage Investment Corporation (MIC) as defined in the Canada Income Tax Act, so is not taxed on income provided that its taxable income is paid to its shareholders in the form of dividends within 90 days after December 31 each year. Such dividends are generally treated by shareholders as interest income, so that each shareholder is in the same position as if the mortgage investments made by the company had been made directly by the shareholder. For further information, please refer to regulatory filings available at www.sedar.com or Atrium's website at www.atriummic.com.
For further information, please contact
Robert G. Goodall
President and Chief Executive Officer
Chief Financial Officer
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/163996