Toronto seeks part of Livent sale

City feels it's entitled to a piece of the proceeds

By TAMSEN TILLSON

TORONTO -- This city has gone to court to grab a piece of the proceeds from Livent's share of an ill-fated downtown development next to the Pantages Theatre that the beleaguered company is about to sell.

The court Wednesday approved a motion by Livent to unload its 18% stake in Dundee Realty Victoria-Shuter Corp., which is worth some C$350,000 ($235,000) plus a percentage of potential profits and liabilities.

DRVS had planned to build a 1,400-seat theater and 41-floor hotel-condo complex on the site, which Livent bought from the city in the early 1990s, with funding based largely on a future surcharge on tickets and secured by a vendor take-back mortgage.

The city contends in a separate affidavit filed Tuesday with the Ontario Supreme Court that it is entitled to some of the proceeds from the sale of Livent's share of the company. In addition, the city has asked that the land be sold in the open market, claiming that Dundee had received it at below market values.