Groupe Sélection and its president, Real Poquelin, “do not have the means adequate to their ambitions” when they ask for more time to reform the insolvent company, the Quebec Supreme Court decides. The company’s assets must be quickly put up for auction in order to “guarantee” its “survival”, the court said.
Even if the businessman’s proposed approach makes sense, the debt of the real estate developer and manager of housing for seniors (RPA) is “excessive,” even “unsustainable,” Judge Michel Pinsonault wrote in his decision. It was delivered on Friday evening.
If Mr. Bucklin wants more time [les enchères] to [déroulent] In more than two phases, it was his responsibility to provide the controller with the necessary tools that would allow him to consider such a scenario taking into account the current major financial constraints,” Al-Qadi asserts.
However, the Sélection chief appears to still be in the process of talks with potential donors.
Sélection and its bankers agree that the assets must be auctioned off to fund the redemption of the turned company Corporate Creditors Arrangement Act (CCAA) last November. PricewaterhouseCoopers, acting as observer, intends to put all the buildings and land up for auction next week and the transactions could be completed as early as July.
The RPA giant, which claims the auctions are nothing but a liquidation in disguise, has asked to delay the process until February 2024. Mr. Bucklin even appeared before Judge Pinsonnault on Tuesday to argue his case. It was the first time he had explained himself to the judge since his company had taken shelter from its creditors.
“It is difficult to implement the recovery plan before the company’s financial recovery has been successfully completed, especially in the case before us,” said the judge.
in the red
Despite efforts to cut expenses by Christian Bork – the head of restructuring – Selection’s monthly operating loss fluctuated between 7 and 9 million, Resolution recalled. Publication of the auction process was contingent on additional funding of $20 million from Selection lenders.
Judge Pinsonnault has also launched a new call for collaboration between the console and Selection. A climate of mistrust has developed between the two parties, he says.
There seems to be a misunderstanding in Mr. Bucklin’s mind […] [du] The role of controller who always seems to be seen as the henchman [des prêteurs] To whom will he respond first of all.
Judge Michel Pinsonault, in his decision
It urges the two parties to communicate better. It also means that the businessman should be more involved in negotiations with different parties. Mr. Bucklin hopes to be able to find a new financial partner to hold some of the assets — in particular seven strategic locations for projects, including the former Molson Brewery, in east downtown Montreal.
Via email, Selection said it “notes” the ruling.
“We will continue to work with all stakeholders and remain consistent with our goal of joining forces with strategic partners who will allow us to […] to revive us. »
in walking
According to the timetable in Judge Pinsonnault’s decision, the bidding process should begin next Tuesday.
The court also accepts the request of the observer who wanted to suspend the pledges registered in the course of the auction. This caused discontent among some of the creditors who were partners in Selection, who wanted to have a say in whether they were affected by a transaction.
According to PwC, this could have had a “devastating effect” on the auction since potential buyers could have been left on the sidelines with no real “reasonable chance” of making a winning bid.
read more
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- April 28th
- The date on which the first phase of the auction ends
Source: pricewaterhousecoopers.com
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