Stinson is the new Black...
Stinson is teh new Black.. Deja Vu of Conrad..
Developer Harry Stinson Puts Businesses in Bankruptcy (Update1)
By Joe Schneider
Sept. 20 (Bloomberg) -- Harry Stinson, the Toronto real- estate developer who was in competition with Donald Trump to build the city's highest residential building, placed four of his businesses in bankruptcy and, according to the receiver running the operations, violated a court order by doing so.
``It's going to create more chaos,'' Joseph Latham, lawyer for the receiver, Ira Smith Trustee & Receiver Inc., told Ontario Superior Judge Sarah Pepall at a hearing in Toronto today. He urged the judge to annul the bankruptcies.
Stinson operated The Suites at 1 King West, a luxury condominium-hotel, through his company Stinson Hospitality Inc., one of the four companies placed in bankruptcy yesterday. He had also proposed to build twin towers, the highest at 81 stories, surpassing a 70-story condominium Trump had planned a block away.
Trump's tower proposal has been scaled down to 57 stories, while Stinson's Sapphire Tower has been shelved, with Sapphire Tower Development Corp. having been placed in bankruptcy protection July 20.
At today's hearing, Latham also asked the judge to order Stinson to return financial statements and computer drives taken from 1 King West. He said Stinson removed two computers Aug. 24 and a box of documents on Labor Day, material that should have stayed in the possession of the receiver.
The receiver is reviewing security tapes to see if Stinson was caught on camera removing the material, Latham said.
`One Exit'
``There is one exit that's not covered by security cameras,'' Latham said. ``He'd know that.''
Pepall ordered the return of the material, although she allowed opposing lawyers time to agree on how to determine what Stinson may be allowed to retain if it's privileged information covered by a lawyer-client confidentiality.
She said she would rule tomorrow on the legality of Stinson's bankruptcy filings and the appointment of a trustee.
Stinson was allowed to file for bankruptcy because, as the sole director of the four companies, he retained power over the corporations and wasn't expressly forbidden from taking the action in the receivership order, Christopher Reed, lawyer for Mel Zweig, the bankruptcy trustee, said.
``What's wrong with Mr. Stinson throwing up his hands and saying, `I don't want to have anything more to do with this mess?''' Reed asked.
That's not what Stinson may have in mind though, according to a lawyer representing some of the owners at 1 King West, who observed today's proceedings.
Maintain Control
Stinson wants to maintain control of the property and can do so by appointing a trustee who reports to him, Thomas Richards said in an interview.
The bankruptcy filing is an ``attempt to take an end run around your order,'' Patricia Conway, a lawyer for Ed Mirvish Enterprises Ltd., told the judge. Mirvish sued Stinson and forced his company into receivership after Stinson failed to pay an $11.8 million debt to the company.
The case is Between Ed Mirvish Enterprises Ltd. and Stinson Hospitality Inc., 07-cl-006913, Ontario Superior Court of Justice (Toronto).
To contact the reporter on this story: Joe Schneider in Toronto at
jschneider5@bloomberg.net .