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Waterloo launches more legal attacks Continued from page I "gilvw iarc d ~.un (m lhuu Invnlwnwm m rcp,ards to tl report pmudml In Waterloo council on [hr suumlucss and finaurial btutetits ml the financing transaCtl0t1 lot" posed hy MFI' Irrnanriul Services Ltd. in curly 3000 than nausucuuu led to the cost m RIM Park hul- loaning up front $1 [23 mil, lion to S227 million. The city is seeking SHI million in damages from CHRIS Inc., plus an addition- al $6 million to cover legal expenses and the cost of the RIM Park inquiry. which sits at about $3.8 million. In October 2000, the Clarita Life Insurance Com- pany underwrote a S59.7 million lease and leaseback transaction under a head leasersub lease structure that allowed Clarita to fund the repayment of all lease payments payable under the Head Lease to the city, with the proceeds from the transaction being used by the city for the purpose of paying for the park, An out-of-court smir- ment brought the ctmt down to $145 million. Of that $59.7 million, (Ilarica snld $12.5 million to another financial institu- tion, the Maritime Life Assurance Company. The transaction was. structured as a 3 I your, fully amortizing sub-lease pay- mom stream with escalating monthly paymvnls due directly from the city. "Prior In being written by Clarita. the transav1ior1 was rated by (IRES Inc, in con- nccliun with a rating request by the cily for a rat- ing at its long-term dcht. The resulting rating, which looked all the trarth- action and related frnancing ohligution mm the City's (lob! prnlnfilv oslilnalt's. was awarded an Ar. 'lhc city uxprru-d In be able In suppnrl thc repay mom of the finam ing from the ongoing upormimml row-Hum from park usage. plus an annual support from thc city n! up In $1.2 million. Rvgardlvss of park rem-nut: huwvwr. the (My wax rcspunsihlt- In par (Ilarr its: the sulrlvitsos repay moms. (ihuru'n-(I an "tlntittlth, Something happening at your SCHOOL? WATERLOO CHRONICLE 5pm ial visitors, uniquv programs, fun fairs, runs, play days, signifii ant awards or at t omplishments _.. if thvrc's something spm ial happvning at your St hool, givv us d t all at 886-2830 ext. 215 or 229 or email us at editorialerwaterloochrorticle.ca 279 Weber Street North, Suite 20, Waterloo, ON N2] 3H8 Another invoice, dated Nov. 1. 1999. names Ruf- fudeen and lustason. chat ing the city over $3.700 for the services of researching MFP, obtaining references for MFP. and meeting with city staff In discuss finance, income tax, accounting and operational considerations. ll]|\l and Young HP, “winding [human [an Rudd and [hum funk. and cmployves "umifer Insu- sun. Animal Ktoudee" and theresa Fischer, Face a law- sllil With regard to the inves» ligation they carried out fur tlw tity' mm the reputation, crcdihility and integrity of Mrp. The bill also charges for discussion spent with for- mer Waterloo CAO Tom Stockie with respect to fiam cial calculations. including interest rate assumptions. l'he lawsuit also seeks $31 million, as well as an additional $6 million to cover legal expenses. The Kitchener account- ing firm provided the city with auditing services and research regarding the financing. lusrason and Fischer are named on an invoice to the City of Waterloo. billing the city for more than $22,000. for attending various meet- ings with city councillors and staff, and meeting with Clarita. MFP management and related legal counsel. Waterloo is also going damages and aggravated after ll people who were damages totaling $l0 mil- working for MFP at the lime lion. of the deal. Facing litigation Manning. who is also are: Peter Wulfraim. former representing the city in its president uf MFP: Brian SM-million lawsuit against "r---"."-"""'.-'"".---.--'"'.- Serr'ingyour community since 1856 Stevens, uu-rpl'rsrdenl and treasurer; Ihave Robson. the salesman behind the Water- luu deal; Ken Douglas Mike Pitre; Sandy Pessione. husi, was development managL-L Carmen Roberts, business analyst; Holman Pelech, consultant; Jerry Makohon, manager of debt placement; ftohert Wright, chief tincur cial officer; and Mo Dennis” Three employees of Clar- lca's Structured Finance department were also named in the lawsuit. They include Scott McNabb. vice- president of structured finance; and analysts Neil Cameron and Ken Ander- son. Anderson was the man- ager of the Structured Finance department at the time of the financing deals. McNabb was assistant man- ager at the time of the trans- action. And Cameron joined the structured finance group in 2000. as an analyst. All 14 are being sued in their personal capacities for their roles, actions and lia- bility with regard to the financing arrangement with MFP. The city is also seeking an order for the disgorge- ment of all pmfits and hen, efits, as well as punitive damages and aggravated damages totaling $10 mil- lion. The lawsuit seeks $31 million, as well as $6 million to cover legal expenses for the city. including the inquiry: “his very difficult to judge at this state," he said, stating his next step would be to await the defendants' replies. iormer truism” John Ford " his role In the tinancing scandal, said he would nul comment on the cumenl oi the claims. but said in the interest of the city, he would be moving the matter in the taunt. as quickly as possi- ble. Manning said it could be more than a year befure the issue reaches the courts. Get your old gold , Jewellery repairs ready, for the biggest - repair ' custom design SALE OF THE YEAR! . 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