KSV Advisory Canada’s Leading Boutique Advisory, Restructuring and Valuations Firm.

Forme Development Group

Forme Development Group Inc and certain affiliated entities (the “Forme Group”) was a commercial and residential real estate group of 29 companies comprising 18 projects which sought to develop low rise, high rise, mixed-use and hospitality projects in the GTA and Southern Ontario. The Forme Group raised secured debt totalling approximately $220 million, including through syndicated mortgages.

As a result of liquidity issues, 13 entities commenced formal insolvency proceedings under the Companies’ Creditors Arrangement Act (“CCAA""). Three other entities in the Forme Group filed notices of intention to make a proposal under the Bankruptcy and Insolvency Act (“BIA"). KSV is the Court-appointed Monitor in Forme Group’s CCAA proceedings and the Proposal Trustee in its BIA proceedings.

The primary purpose of the CCAA and BIA proceedings and KSV’s mandate is to, inter alia, conduct an orderly sale of the Applicants’ real estate and to conduct a claims process for the Applicant and Non-Applicant Forme Group entities. KSV’s mandate includes conducting a claims process which involves a flow of funds analysis to determine claims that the various entities in the Forme Group may have against one another. The proceedings have been complicated due to syndicated mortgage interests and claims by various stakeholders, including purchasers of condominiums in several projects, claims by Tarion and an omnibus claim filed by Representative Counsel to a group of condominium purchasers. As part of this assignment, KSV also oversaw the completion of a condominium project owned by the Forme Group and closed the sale of each condominium to the purchasers of the units. In performing its mandate, KSV has challenged several transactions by the Forme Group’s principal that appeared to be designed to keep the assets away from creditors.