Loan default to cost province
Winnipeg Sun
January 27, 2006
Taxpayers may be on the hook for $700,000 after a provincial loan to Maple Leaf Distillers has gone into default.
The liquor distillers and its holding company -- owned by David Wolinsky and Costas Ataliotis -- received a secured loan from the province in 2001 which is now in arrears, a government spokesman confirmed yesterday.
THIRD IN LINE
"The loan was current until December," said the spokesman, adding the province is working with other secured creditors to recover the money.
Tory finance critic Gerald Hawranik pointed out the province is third in line to get its money from the bankrupt company.
"The chances of the government recovering anything is nil to remote," said Hawranik.
"There's no personal guarantee on this mortgage and the only security is in the building."
Hawranik said the building -- located at 251 Saulteaux Cres. -- carries a $2.7-million mortgage. The assessed property value in 2003 was just slightly more than $2 million.
Furthermore, any city taxes would have to be paid before the province collected its money, Hawranik added.
Adrienne Batra, provincial director of the Canadian Taxpayers' Federation, said the government shouldn't be in the business of loaning taxpayers' money.
"That's why corporate welfare doesn't work. When the government is in the business of picking winners and losers, the taxpayers lose," said Batra.