A perusal of Trustco’s recently released Interim Results (on page 20) revealed that Trustco is currently embroiled in a legal matter in London between itself and Helios Oryx Limited, regarding a partial loan secured as growth capital and development of its real estate portfolio during 2016.
Helios Oryx originally agreed to advance a loan of NAD 640 million (USD 40 million) to Trustco and received security for the full amount. During the course of the agreement, however, only NAD 240 million (USD 15 million) was advanced to Trustco.
Trustco requested that the security provided be reduced to match the loan amount, so that it may use that security to procure the additional funds required to successfully complete its various projects. Trustco suffered significant economic damages as a result, and had to restructure all its international and local loan facilities in 2019. Trustco instituted a damages claim against Helios Oryx after it refused to relinquish its additional security, and Trustco subsequently refused to repay any further amount until its claim had been settled.
During the litigation it was discovered that Helios Oryx had elected to receive security for the full amount even though they were aware they were not going to advance the agreed amount to Trustco, and had sold its full interest in the loan to Trilinc, an American fund, as soon as the initial USD 15 million was disbursed. Helios Oryx in turn instituted legal action against Trustco, claiming repayment of NAD 345 million including interest.
