The applicants, a group of real estate development entities facing a liquidity crisis, applied for an initial order under the Companies' Creditors Arrangement Act (CCAA).
The court found the applicants insolvent and granted the initial order, including a stay of proceedings extended to related partnership entities.
The court also approved debtor-in-possession (DIP) financing from Halmont Properties Corporation, authorized payments to critical suppliers, appointed Ernst & Young Inc. as Monitor, and appointed Kesmark as Chief Restructuring Officer to stabilize operations and facilitate restructuring.
