Company with huge real estate holdings in the north has $144M in debt, files for creditor protection
CTV
One of the largest owners of residential real estate in Ontario --with large holdings in northern Ontario – has filed for creditor protection after accumulating more than $144 million in debt.
One of the largest owners of residential real estate in Ontario --with large holdings in northern Ontario – has filed for creditor protection after accumulating more than $144 million in debt.
The company would buy homes and apartment buildings, mainly in northern Ontario, renovate them and make a profit by renting them out at higher rates.
But rising interest rates ate up much of the cash that was supposed to be used for renovations, causing revenues to tank.
The group of companies, which filed for insolvency under the Companies’ Creditors Arrangement Act (CCAA), owns residential properties in Timmins, Sault Ste. Marie, Sudbury, Kirkland Lake, Capreol, Val Caron and Temiskaming Shores. The properties total 631 units – including single family homes and apartments -- of which 424 are occupied.
Collectively known in court documents as “the company,” the group of companies is made up of Balboa Inc., DSPLN Inc., Happy Gilmore Inc., Interlude Inc., Multiville Inc., The Pink Flamingo Inc., Hometown Housing Inc., The Mulligan Inc., Horses In The Back Inc., Neat Nests Inc., and Joint Captain Real Estate Inc.
They all filed for creditor protection under the CCAA last month.
Among the creditors are northern municipalities, including Timmins (owed $793,352.09), the Sault ($645,125.05), Greater Sudbury ($283,704.36), Kirkland Lake ($92,099.62) and Temiskaming Shores ($11,391.23).
