Urbancorp attempts bankruptcy avoidance through restructuring proposal
Urbancorp announced that five of its subsidiaries, together with the Urbancorp Group and management company (Urbancorp Toronto Management Inc.), Urbancorp Downsview Park Developments Inc., Urbancorp (St. Clair Village) Inc., Urbancorp (Lawrence) Inc., Urbancorp (Mallow) Inc., Urbancorp (Patricia) Inc., have initiated restructuring proceedings under the Bankruptcy and Insolvency Act (Canada).
“We determined, after much consideration and consultation, that a Court-supervised process is the best way to deal with current cash flow issues,” said Alan Saskin, Urbancorp CEO.
The process is intended to provide the companies with a stabilized environment in which to manage their affairs. The companies will follow a restructuring plan, including seeking Court approval of a sale process for certain of their assets. This will support efforts to maximize real estate values for the benefit of creditors and other stakeholders, in an orderly manner.
“This will allow us to reduce debt in an efficient manner while continuing to focus on our core business. Urbancorp has delivered 1,028 homes in the past two years and currently has 1,058 additional homes under construction. The Court process is intended to ensure that, with our partners, we will be delivering these homes in the next two years,” said Saskin.
The filing companies will work closely with the proposal trustee, KSV Kofman Inc. to stabilize operations, preserve and protect asset value for stakeholders and pursue the sale process.
Additional information will be available on the proposal Trustee’s website: http://www.ksvadvisory.com/insolvency-cases-2/urbancorp/