Home Cap­i­tal draws $250M more from emer­gency line of credit

Cape Breton Post - - Business -

TORONTO — Home Cap­i­tal Group says it has drawn down a fur­ther $250 mil­lion this week from its emer­gency line of credit to re­pay de­posit notes due Wed­nes­day. That leaves the Toron­to­based mort­gage com­pany (TSX:HCG) with $350 mil­lion left from a $2 bil­lion line of credit pro­vided by the Health­care of Ontario Pen­sion Plan late last month. The pen­sion plan pro­vided the loan af­ter Home Cap­i­tal’s cus­tomers be­gan to drain their high-in­ter­est sav­ings ac­counts.

The flood of de­posit with­drawals fol­lowed al­le­ga­tions filed against Home Cap­i­tal in April.

Home Cap­i­tal has de­nied ac­cu­sa­tions that it mis­led in­vestors in state­ments and com­ments is­sued by se­nior ex­ec­u­tives, in­clud­ing two for­mer CEOs and a third man who was the lender’s chief fi­nan­cial of­fi­cer at the time.

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