whats eating city pacific..., page-9

I agree that Trilogy will have to convince unitholders of there ability to deliver. The unitholder rebellion has been misinfomation re City Pacific fees feeding unitholder lack of appreciation of the drastic real estate situation in the type of market CP 1st Morgage loaned to. This price drop occured when all unitholders were sent the notice of meeting for vote on dumping CP as 1st morgage fund manager with an accompaning letter giving big claims by Trilogy to get peoples money back.
My only concern with CP is that they should have taken redemption/receivership action sooner in some cases as most unitholders thought that their money is backed by all the development's worth and would be recouped on default by seizing the asset. They only loan a percentage of value of development. It is unfortunate that the value of development is below loan in many cases. Cp's view is that these development will regain their lost value when things pick up.

Discl. Shares in Ciy and estate benificary for 1st morgage.