perelgut (02/15/83)
Apparently Canadian banking has decided to follow the rather high-handed
tactics that are working so effectively for the Ontario government. I am
particularly concerned by the information provided by the employees of
Kilderkin Investments Ltd. For non-Torontonians, let me provide a brief
background. People who know what I am talking about should skip the next
paragraph.
Toronto recently saw an interesting deal in which 11,000 apartment units
changed hands rapidly, escalating from $250 million to $500 million (although
the figures are slightly argueable). Key companys in the deal include
Crown Trust (owned by Leonard Rosenberg) and Kilderkin Investments Ltd.
(owned by Bill Player). Since that point the government of Ontario has seized
Crown Trust, Seaway Trust, and Greymac Trust (owned by Player). The government
then passed retroactive legislation making their seizure legal and giving them
the power to seize a company from its owner and sell it to whoever the
government feels for whatever amount the government feels it wants to. The
sale of Crown Trust has just recently passed and they got a reasonable price,
but only by first using $90 million of Canada Deposit Insurance Corp. money,
(This is YOUR money!!), to back the sale. Player beat them during this period
by liquidating Greymac Trust, but they are still out to get him, as follows.
Canada's major chartered banks, the Ontario Savings and Loan Bank (run by
the Province of Ontario), and several trust companies have all refused to do
business with Kilderkin. According to a news article I have just finished
reading, they have refused to state why. To be more specific, let me
quote from an open letter by the employees of Kilderkin Investments Ltd.
"The Bank of Montreal will discontinue services for our company at the
close of business Feb. 15, 1983. The Bank of Nova Scotia discontinued
banking services to us Jan. 28, 1983. To date no satisfactory reason
for their actions has been given despite many requests for an explanatory
by our company.
"Kilderkin Investments Ltd. has never had bank loans, overdraft privileges
or a line of credit. There is not nor has there ever been any risk
whatsoever to these banks. Furthermore, these banks have had the use
of our funds that were on deposit and have derived considerable
revenue therefrom."
The letter continues along similar veins and ends with a plea to cease
personal business with the banks mentioned. The reason for the letter is
very simple. Without a bank, Kilderkin Investments Ltd. cannot do business
and the 240 people employed will have to be laid off. This is never a
good thing, but given the current employment situation this is absolutely
immoral. Apparently Kilderkin has had to get special permission to write
cheques to pay the employees and cannot even figure out how to pay them
severance, vacation, etc. When questioned, the banks apparently refuse
to state their reasons to the press.
This article has run on long enough. I just wanted to make sure people
are informed about what is happening. First the government passed a law
saying they can take your stuff and sell it to whoever they want for whatever
they want. Now the banks have decided that they don't have to deal with you
because they don't like the colour of your eyes or something (and they don't
have to tell you why.)
--- Stephen Perelgut ---
P.S. Some of the 11,000 apartments units and 7,000 other units managed by
Kilderkin Investments Ltd. have a small problem of who to pay, how
to pay etc. It seems that paying by cheque is a privilege and
since cheque cashing privileges have been withdrawn from Kilderkin,
cheque paying privileges may also have to disappear. And where
will he put the moneys? As the article this is based on ends,
"This is a sad day".