Romspen’s largest borrower now owes $499-million and his most valuable asset filed for CCAA
Romspen Investment Corp., a major Canadian private mortgage lender, is taking ownership of Woodbine Mall from its largest borrower, Issa El-Hinn, after his debt ballooned to $499 million and repayment efforts failed. The mall, now under CCAA protection, was unsold in multiple auctions, complicating Romspen's ability to recover funds. With investor redemptions frozen since 2022, Romspen faces ongoing cash flow challenges amid broader struggles with defaulted real estate loans. The long-term value of the mall redevelopment remains uncertain due to Toronto's stalled real estate market.
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Open this photo in gallery:Romspen Investment Corporation signage outside the companys office in Toronto, Oct. 08, 2024.Yader Guzman/The Globe and MailShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountRomspen Investment Corp. is buying a troubled mall from its largest borrower after the loan total swelled to $499-million and the likelihood of repayment dwindled after two failed property auctions.Romspen, one of Canada’s largest private mortgage lenders, has been battling commercial real estate investor and businessman Issa El-Hinn, also known as Chris Hinn, for years after he defaulted on multiple loans.
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