Financially strapped Lanesborough REIT expects to be delisted from the TSX Venture Exchange after its administrator withdrew its services and last two independent trustees resigned.

Winnipeg-based Lanesborough is grappling with about $201 million in debt, including approximately $159 million owing to related parties 2668921 Manitoba Ltd. and Shelter Canadian Properties. The latest troubles come after unitholders rejected a proposal to sell all of Lanesborough’s real estate assets.

Lanesborough said in a news release that management expects the Manitoba Securities Commission or other securities regulators to issue a cease-trade order in the near future, because the REIT will no longer make required public disclosures. In addition, Lanesborough anticipates that the TSXV will halt trading of the REIT and move its listing to the NEX board.

NEX serves as a trading forum for companies that do no meet the TSXV’s ongoing listing standards.

Lanesborough said that Shelter will no no longer provide administrative services due to the REIT’s inability to pay amounts outstanding to the company. Meanwhile, Charles Loewen and Earl Coleman have resigned as independent trustees.

As a result, Arni Thorsteinson is the REIT’s sole trustee.

Thorsteinson was connected to the proposal that Lanesborough unitholders rejected in June. During a annual general and special meeting, unitholders rejected a plan to sell all of the REIT’s assets to a Manitoba numbered company known as 725, which is owned by Thorsteinson, a Lanesborough insider.

Consequently, the proposed sale of 11 multi-residential rental properties in Alberta, Saskatchewan and Manitoba, and vacant Winnipeg land parcel, for $41.7 million will proceed and asset purchase agreements will be terminated.

Based on that decision, a previously scheduled proposal to wind up the REIT’s business was not considered.

Even if the asset sale had gone through, the REIT would not have recouped sufficient funds to repay all of its outstanding debts, and unitholders would not have received any proceeds from the sale, Lanesborough said previously.

Photo: Lanesborough REIT