KingSett Capital and Home Capital has come to an agreement to have their commercial mortgage portfolio which is worth about $1.2 billion and will be sold off. The current president and CEO of Home Capital, Bonita then said; “this transaction will help the company further stabilize its liquidity position and highlight the flexibility and options created by the quality of our assets. Proceeds from the transaction are expected to have an immediate impact by enabling us to enhance our liquidity and reduce the outstanding debt under the Company’s $2 billion credit facility.”
As part of the agreement pact, the portfolio will be bought by Kingsett for 99.61% of unsettle principal worth. A loss of $15 million prior to income taxes on the business deal will have to be incurred by Home Capital.
Home Capital recently told the public they have come to an agreement with the OSC and the issues of the class action.
Home Capital said; “under its proposed settlement with the Commission, Home Capital will make a payment of $10 million and reimburse Commission costs in the amount of $500,000. Gerald Soloway will be reprimanded, prohibited from acting as a director or officer of any reporting issuer for a period of four years and pay an administrative penalty in the amount of $1 million. Each of Robert Morton and Martin Reid will be reprimanded, prohibited from acting as a director or officer of any reporting issuer for a period of 2 years and pay an administrative penalty in the amount of $500,000.”