Some of the investors in the Trump International Hotel & Tower Toronto are asking the Ontario Securities Commission to launch a formal investigation into the investment scheme offered as part of the hotel. This is a last-bid effort to obtain immediate assistance before their November 29 closing dates. Though promised by the developers of the hotel, Talon International Inc., that the hotel units could be easily financed as residential condominium units, investors have come to learn that Canadian banks are treating the hotel project as a commercial enterprise and have all refused financing as a condominium purchase. The investors have also discovered that their investments are running at losses of upwards of $175 a day per unit, due to the current shortfall between the maintenance fees and the hotel unit revenues. Most of the investors have a November 29 closing date and with the banks refusing financing, investors are faced with either having to come up with substantial amounts of cash to close or resort to secondary financial institutions which will only provide partial financing for this project as a commercial investment at prohibitively high interest rates. Some of these investors have already commenced a multi-million dollar lawsuit against Talon and its directors, as well as a number of Trump organizations and their directors, including Donald Trump Sr. Ontario courts have declined to hear the matter on an urgent basis, notwithstanding the upcoming November 29 deadline, and have pushed any preliminary hearing of this dispute into late 2013. Talon, however, has extended the closing date to December 13 to allow more time for it to respond to recent inquiries made by the OSC.
245 Fairview Mall Drive, Suite 501, Toronto, ON M2J 4T1