Westbank, one of Vancouver's largest and most prominent real estate development firms, is in 'a financially precarious position' and has laid off nearly half of its workforce, according to one of its former executives. The allegation was made in a sworn statement recently filed in B.C. Supreme Court as part of a continuing breach-of-contract claim by a former Westbank vice-president.
Receivership of Rental Tower
Just this week, news broke that a nearly completed Westbank rental tower in east Vancouver has been placed in receivership, after a court application by an Ontario pension fund seeking to recoup $109 million in debt. The 35-storey tower at 5083 Joyce St., adjacent to the SkyTrain station, is now under court-ordered receivership.
Former Executive's Claims
As Postmedia News reported in February, the breach-of-contract claim was made by former Westbank VP Rhiannon Mabberley. She alleges the company owes her $1.2 million based on an employment agreement, but Westbank has responded in court claiming that payment was dependent on profits that never materialized on the projects she worked on. None of her claims have been proven in court.
In an affidavit filed April 29, Mabberley wrote that the $1.2 million order only yielded $32,025.37, which 'suggests to me that Westbank has changed its operating accounts to protect its assets from creditors such as myself.' She added: 'I verily believe that Westbank is in a financially precarious position. For example, I am aware that Westbank has laid off nearly half of its workforce.' In addition, she wrote, the company has 'liquidated multiple real estate holdings to cover accumulated debts. I am also frequently contacted by suppliers with outstanding invoices to Westbank, inquiring about payment.'
Company Response
Asked about alleged staff reductions Friday, the company wouldn't confirm anything. 'We cannot comment on matters before the courts, but we would note that none of these claims have been proven,' said Westbank spokesperson Ariele Peterson.
Background on Westbank
Westbank was behind several of Vancouver's biggest and flashiest buildings over the last three decades before expanding to other markets, including Toronto, the U.S. and Japan. However, in recent years, the developer has been selling off assets and facing lawsuits over allegations of unpaid bills.
In recent weeks, lawyers for both parties have filed a series of documents in court as Westbank seeks to set aside pretrial garnishing orders, which allow a creditor to get a debtor's money from a third party, like a bank. Mabberley obtained pretrial garnishing orders for Westbank's corporate bank accounts seeking to have $1.2 million placed in trust with the court before an October trial.
Mabberley's affidavit says her information is based on her 21 years of experience as a real estate development executive, her continued work as a consultant in the industry, and 'information gleaned from my day-to-day work and interactions in that industry.'
