Toronto-based Urbancorp has started restructuring proceedings under the Bankruptcy and Insolvency Act in a bid to address debt issues.
“We determined, after much consideration and consultation, that a court-supervised process is the best way to deal with current cash flow issues,” chief executive officer Alan Saskin said in a release. “This will allow us to reduce debt in an efficient manner while continuing to focus on our core business.”
Urbancorp has over 1,000 units currently under construction and the bankruptcy proceedings are meant to allow the developer to focus on completing those homes.
“The process is intended to provide the companies with a stabilized environment in which to manage their affair,” Urbancorp said in a release. “The companies will follow a restructuring plan, including seeking Court approval of a sale process for certain of their assets.
“This will support efforts to maximize real estate values for the benefit of creditors and other stakeholders, in an orderly manner.”
Urbancorp and its subsidiaries – Urbancorp Toronto Management, Urbancorp Downsview Park Developments, Urbancorp St. Clair West Village, Urbancorp Lawrence, Urbancorp Mallow and Urbancorp Patricia – are part of a restructuring that will be overseen by trustee KSV Kofman Inc.
A large developer is taking steps to “deal with current cash flow issues.”