Neal Hall
Sun
Quest Capital Corp. has filed a legal action against thee Vancouver businessmen who are allegedly involved in a $32-million loan that is in default.
Named as defendants are James George Pappajohn, Thomas James Pappajohn and Anthony James Pappajohn, who all live on Vaoncouver’s west side.
Quest claims it agreed to loan the money to Jameson House Properties Ltd. and Jameson House Ventures Ltd., with the defendants promising to “save” the plaintiff against all losses, costs, expenses and any damages arising out of the loan.
“The debtors have made default under the loan,” states the legal action, which seeks the appointment of an interim receiver.
Quest claims it demanded repayment of the debt on Nov. 17 from each defendant but they have failed to pay the amount demanded: $ 30.4 million, which is accruing interest at the rate of $ 10,018 a day.
Anthony Pappajohn, in other news reports, said he had to halt construction on the Jameson House project in mid-November because one lender in a syndicate of three financiers pulled its backing for the $ 180-million luxury building at the end of October.
Pappajohn said he was continuing to search for new financing, but could not justify keeping construction crews on site if he didn’t know whether his company would run out of money to pay them.
Jameson House was one of a flurry of Lower Mainland projects to hit financial turbulence in the wake of the credit crisis.
In October, Jung Development Inc. lost the main financier for its Infinity project in Surrey’s Central City when the investment bank Lehman Bros. collapsed. A second Jung project, Sky Towers, stopped when it failed to find financing.
Jameson House was designed as a 37-storey condo and office tower with suites ranging from $ 500,000 to $ 5.3 million.