BUSINESS

Home Capital Draws $250 Million From Emergency Fund To Repay Deposit Notes

05/24/2017 09:52 EDT | Updated 05/24/2017 11:54 EDT

TORONTO — Home Capital Group says it has drawn down a further $250 million this week from its emergency line of credit to repay deposit notes due Wednesday.

That leaves the Toronto-based mortgage company (TSX:HCG) with $350 million left from a $2 billion line of credit provided by the Healthcare of Ontario Pension Plan late last month.

The pension plan provided the loan after Home Capital's customers began to drain their high-interest savings accounts.

The flood of deposit withdrawals followed allegations filed against Home Capital in April.

Home Capital has denied accusations that it misled investors in statements and comments issued by senior executives, including two former CEOs and a third man who was the lender's chief financial officer at the time.

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