Urbancorp primarily engaged in the development, construction and sale of residential properties in the Greater Toronto Area. Urbancorp owned several real estate projects in various stages of development and construction.
Urbancorp Inc., the ultimate corporate shareholder in the Urbancorp Group, made a public offering of debentures in Israel for approximately $64 million to address liquidity problems. The amount raised was insufficient to resolve its issues.
Shortly thereafter, Tarion Warranty Corporation, the Ontario new homes regulator, issued a notice of proposal to revoke registration of seventeen of the Urbancorp Group’s entities as a result of concerns about the Urbancorp Group’s financial position and the high number of warranty claims made against entities within the Urbancorp Group.
Because of the foregoing pressures, several entities in the Urbancorp Group commenced insolvency proceedings.
KSV is the court-appointed monitor of in excess of twenty Urbancorp Group entities. The proceedings are ongoing. KSV is also the receiver of Urbancorp entities that own and operate geothermal energy systems.
Urbancorp owned several development properties which KSV successfully marketed for sale and had (or has) an interest in several major developments, including the Kingsclub Project (with First Capital) and the Downsview Airport Lands Project (with Mattamy Homes). Urbancorp also made a significant investment in geothermal energy systems, which KSV just completed marketing for sale.
The primary purpose of the restructuring proceedings has been to conduct an orderly disposition of the Urbancorp Group’s numerous real estate assets and to resolve the complex claims and litigation that has been filed in these proceedings.
KSV has addressed several novel issues in the proceedings, including issues related to the termination of residential purchase contracts for units sold by Urbancorp and complex construction related claims.
KSV has addressed several novel issues in the proceedings, including issues related to the termination of residential purchase contracts for units sold by Urbancorp and complex construction-related claims. The proceedings have been heavily litigated.