Sudbury news: Company with huge real estate holdings in the north has $144M in debt, files for CCAA protection
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