The out-of-town landlords behind nearly a dozen corporations that racked up $144 million in debt buying up hundreds of rental properties across Ontario will continue to have court-ordered protection from their creditors until the end of October. Court filings from the group’s insolvency show that KSV Restructuring Inc. — in its role as court-appointed monitor overseeing the Companies' Creditors Arrangement Act (CCAA) proceedings — required more time to finalize terms of the restructuring, with the goal of exiting the insolvency process before creditor protection expires Oct.
31. A document outlining the terms and conditions for the sale and liquidation of real estate assets, known as a restructuring term sheet, has also been approved in Ontario Superior Court. The term sheet allows for both first and second mortgagees to place credit bids, using their secured debts, in order to take ownership of their respective properties.
It replaces the initial Sales and Investment Solicitation Process (SISP), which faltered after KSV Restructuring determined that none of the 464 letters of intent received provided “sufficient proceeds” to repay both secured lenders and a $12-million debtor-in-possession (DIP) credit facility in full. The deadlines for first and second mortgagees to submit credit bids on properties is Sept. 20 and Sept.
30, respectively. Properties that are not subject to credit bids, meanwhile, will be held in a portfolio that will be maintained by a property ma.