A small group of landlords who own hundreds of rental properties across the province have run out of money, owe over $144 million in unpaid loans and face dozens of lawsuits from creditors, according to documents filed with the Ontario Superior Court of Justice.
Dylan Suitor, Ryan Molony and Aruba Butt are behind 11 now-insolvent corporations that face a “liquidity crisis” with only $100,000 in the bank, the documents say.
The landlords and their corporations are based in the Hamilton area, but specialize in buying, renovating and in some cases relisting “distressed residential real estate in undervalued markets,” said a court factum.
Those markets are in Timmins, Sault Ste. Marie and Sudbury, as well as smaller communities, including Kirkland Lake, Temiskaming Shores and Val Caron.
This is the best summary I could come up with:
A small group of landlords who own hundreds of rental properties across the province have run out of money, owe over $144 million in unpaid loans and face dozens of lawsuits from creditors, according to documents filed with the Ontario Superior Court of Justice.
The three received court-ordered protection, under the Companies’ Creditors Arrangement Act (CCAA), from over 300 lenders until the end of March 2024, wrote Justice Jessica Kimmel in her decision this week.
The landlords and their corporations are based in the Hamilton area, but specialize in buying, renovating and in some cases relisting “distressed residential real estate in undervalued markets,” said a court factum.
The landlords currently own 406 properties where 1,000 tenants live, making them “one of the largest holders of residential real estate in Ontario,” Kimmel wrote.
“To reduce the [landlords’] significant interest expense and improve their free cash flow, the company began exploring refinancing and sale opportunities in 2022,” Clark said.
Filing for creditor protection is often used as “a very last resort” for companies on the brink of bankruptcy, said lawyer Karen Fellowes, based in Calgary and Vancouver, who specializes in restructuring and insolvency and is not involved in this case.
The original article contains 806 words, the summary contains 192 words. Saved 76%. I’m a bot and I’m open source!