Credit union goes after restaurant's property
Winnipeg Free Press
Tuesday, February 7th, 2006
By Dan Lett and Geoff Kirbyson
THE owners of Green Gates restaurant -- one of Winnipeg's finest eateries -- are assuring diners and party planners it will continue operating after a credit union served notice last week it intends to foreclose on the restaurant's land and building.
The stately restaurant located just outside Winnipeg on Roblin Boulevard is a favorite venue for weddings and anniversary celebrations, and remains open and operating.
However, Astra Credit Union filed a lawsuit in a Winnipeg court Jan. 31 claiming it is owed $1.7 million by Greener Pastures Inc., the company that owns the building and land on which Green Gates is located.
Astra filed a notice exercising power of sale at the Winnipeg land titles office, giving it the right to foreclose on the Green Gates property in 30 days if Greener Pastures cannot make good on its debts.
David Wolinsky, president and majority shareholder of Greener Pastures Inc., said in an interview the foreclosure on the land and building will not affect restaurant operations.
The restaurant is operated by a separate company, GGCH Holdings Inc., which counts among its shareholders Wolinsky, partner Costas Ataliotis and the Crocus Investment Fund, which invested $480,000 in the upscale eatery more than 10 years ago.
The biggest concern, Wolinsky said, is that the negative publicity surrounding the Greener Pastures foreclosure will spill over and affect business at the restaurant. Wolinsky said Green Gates is booked well into the future for a number of special events.
"It becomes a self-fulfilling prophecy," Wolinsky said. "The scare is raised that the restaurant is in trouble, and the restaurant is in trouble. It's a simple as that."
Ian Dark, the credit union's president, said in an interview the foreclosure was initiated because Greener Pastures was in arrears on its loans. Dark said he has no idea what impact the foreclosure will have on the restaurant operation.
Dark said Astra has no interest in becoming landlord for the restaurant, and will move quickly to find new owners for the property if the foreclosure goes ahead.
"If title comes to us, we will sell it to the highest bidder," he said.
Wolinsky said he used the Greener Pastures assets as collateral to borrow money to support other businesses, including Protos International and Maple Leaf Distillers, which were recently put into receivership.
Wolinsky said he was confident the property would more than pay for any monies owing to Astra. A recent appraisal indicated it was worth more than $3 million, he added.
"The property is worth a great deal more than the mortgage itself," Wolinsky said.
Although the restaurant has a lease, if a new owner wanted to use the building and property for some other purpose, it could cause some concern for Green Gates down the road, Wolinsky said.
Green Gates was launched with great fanfare in the mid-1990s after Wolinsky purchased the grand estate on the banks of the Assiniboine River and constructed a 9,000-square-foot dining room and lounge addition to the original Dutch colonial-style mansion built in 1936.
The restaurant was originally managed by restaurateurs Doug Stephens and Jim Armstrong of WOW Hospitality Concepts. WOW Hospitality ended its relationship with Green Gates in 2003, when the ownership group of GGCH Holdings was restructured. In Protos International's promotional material, Green Gates has for years been described as part of "the World of Protos", a varied collection of businesses linked mostly through the involvement of Ataliotis and Wolinsky.
The Greener Pastures foreclosure is the latest in a series of efforts by Astra Credit Union to recover millions of dollars it lent to companies managed or controlled by Wolinsky and Ataliotis. The companies include Protos International, a holding company, and a network of businesses such as Maple Leaf Distillers, which once described itself as Canada's largest Canadian-owned distillery, and Salisbury House Restaurants of Canada.
Last November, Astra launched a special audit of accounts held by Protos International, Maple Leaf Distillers and Salisbury House after discovering irregularities involving million of dollars of commercial loans stretching back over two years. In January, Astra forced Protos International and Maple Leaf Distillers into receivership
dan.lett@freepress.mb.ca
geoff.kirbyson@freepress.mb.ca