Court File and Parties
COURT FILE NO.: CV-16-11389-00CL DATE: 2020-07-24 SUPERIOR COURT OF JUSTICE - ONTARIO
RE: IN THE MATTER OF THE COMPANIES’ CREDITORS ARRANGEMENT ACT, R.S.C. 1985, c. C-36, AS AMENDED
AND IN THE MATTERP AND IN THE MATTER OF A PLAN OF COMPROMISE OR ARRANGEMENT OF URBANCORP TORONTO MANAGEMENT INC., URBANCORP (ST. CLAIR VILLAGE) INC., URBANCORP (PATRICIA) INC., URBANCORP (MALLOW) INC., URBANCORP (LAWRENCE) INC., URBANCORP DOWNSVIEW PARK DEVELOPMENT INC., URBANCORP (952 QUEEN WEST) INC., KING RESIDENTIAL INC., URBANCORP 60 ST. CLAIR INC., HIGH RES. INC., BRIDGE ON KING INC. (THE “APPLICANTS”) AND THE AFFILIATED ENTITIES LISTED IN SCHEDULE “A” HERETO
BEFORE: Chief Justice Morawetz.
COUNSEL: D.M. Nunes, for Urbancorp CCAA Entities R.B. Schwill, for the KSV Kofman Inc., Monitor and Receiver N. Rabinovitch,, for Adv. Gus Gissin, Court Appointed Israeli Functioning of Urbancorp Inc. S.A. Bomhof, for First Capital Realty T. Saskin, Self-Represented
HEARD and DETERMINED: July 23, 2020 TYPED REASONS: July 24, 2020
ENDORSEMENT
1This endorsement covers three motions:
The Stay Extension Motion in these CCAA Proceedings;
The Monitor’s Motion in Respect of Urbancorp Management Inc.’s (UMI) interest in Fuzion Geothermal Room Units; and
The Receiver’s Motion in Respect of Approval of a Settlement between Urbancorp Renewable Power Inc. (“URPI”) and TS Sports Consulting Inc. (Ted Saskin’s company).
2All motions proceeded unopposed.
Motion to Extend Stay Period
3The basis for the requested relief is set out in the Monitor’s Fortieth Report.
4In my view, the Report establishes that the parties are working in good faith and with due diligence such that the extension request is reasonable in the circumstances. The extension of the Stay Period will provide the Monitor with the necessary time to continue asset realization and to address outstanding issues.
5The required cash-flow statement indicates that the Applicants will have sufficient funds to operate during the extension period.
6The extension is granted.
7I am satisfied that the Fortieth Report of the Monitor should be approved.
8I am also satisfied that the requested fees and disbursements of the Monitor and its counsel and Applicants’ counsel are reasonable in the circumstances and they are approved.
9The Motion is granted.
Fuzion Geothermal
10Counsel advised that this long-standing dispute has been resolved. The grounds for the requested relief are set out in the Motion Record of the Monitor returnable December 10, 2019, and the Third and Fourth Reports KSV Kofman Inc. in its capacity as Receiver of URPI.
11I am satisfied that it is appropriate to grant the requested Vesting Order in the form submitted.
12The motion is granted.
The Receiver’s Motion in Respect of Approval of Settlement with TS Sports Consulting Inc.
13Counsel advised that after considerable negotiation between the parties, an agreement was reached concerning the appropriate amount to be paid by the Receiver of URPI to TS Sports Consulting Inc. for advisory fees owed as outlined in the Fourth Report of the Receiver dated July 17, 2020.
14The Receiver is of the view that the terms of the settlement fall within the range of what is fair and commercially reasonable under the circumstances.
15I accept the views of the Receiver and approve the settlement.
16The Motion is granted.
17Three orders have been submitted to me. All three orders are in an acceptable form and are to be signed and entered.
Chief Justice Geoffrey B. Morawetz
Date: July 24, 2020