Page last updated: July 1, 2024
This page is for information purposes only and you should consult your professional adviser if you have any questions or are uncertain as to your rights or obligations.
In accordance with the SISP, the Monitor, in consultation with the Broker, has elected to exercise its discretion to extend the Phase 2 Bid Deadline to Friday, July 12, 2024 at 5 pm EST. For further information, please contact Taylor Clements at CBRE: (647) 943 4150 or taylor.clements@cbre.com.
The Phase 1 Bid Deadline of the SISP was completed on June 11, 2024. The SISP is proceeding to Phase 2 and the Phase 2 Bid Deadline is 5:00 p.m. (EST) on June 28, 2024. For further information, please contact Taylor Clements at CBRE: (647) 943 4150 or taylor.clements@cbre.com.
Pursuant to paragraph 6.2 (a) of the Investment Agreement, on May 27, 2024 the Investor delivered its written notice to the Companies and the Monitor waiving the Construction Partner Condition. Pursuant to the terms of the SISP, the Investment Agreement will continue to act as the “stalking horse” bid for purposes of the SISP and is deemed to be a Qualified Bid.
A Sales and Investor Solicitation Process (“SISP”) to be run by CBRE was approved by the Court, as well as a Stalking Horse Bid. Amongst other matters, the Court also approved a stay of proceedings until August 2, 2024.
Parties interested in obtaining more information about the opportunity to acquire this project should contact Taylor Clements at CBRE: (647) 943 4150 or taylor.clements@cbre.com
On May 6, 2024, the Companies filed their motion with the Court for:
1. The ARIO to, among other things:
a. Extend the Stay Period up to and including August 2, 2024;
b. Authorize the Companies to use funds provided as a deposit under the Investment Agreement, dated May 6, 2024 (the “Investment Agreement”) between the Applicants and the Initial DIP Lender, in its capacity as Investor (the “Investor”), inclusive of the amounts previously advanced under the Initial DIP Facility to a maximum of $550,000 (the “Deposit Loan”) and authorize a charge in favour of the Investor to secure the Deposit Loan (the “Deposit Charge”);
c. Authorize the Companies to obtain and borrow under credit facilities from the Initial DIP Lender, in its capacity as the “Construction DIP Lender”, to a maximum of $5,000,000 (the “Construction DIP Facility”), and authorize a charge in favour of the Construction DIP Lender to secure the Construction DIP Facility;
d. Increase the amount of the Administration Charge from $200,000 to $350,000;
e. Grant a subordinating Administration Charge (the “Subordinated Administration Charge”) in the amount of $300,000; and
f. Increase the amount of the Directors’ Charge from $50,000 to $125,000; and
2. The SISP Order to, among other things:
a. Approve the SISP and authorize the Companies and the Monitor to commence the SISP immediately;
b. Authorize the Monitor to negotiate the Investment Agreement;
c. Approve the Investment Agreement as a stalking horse bid in the SISP; and
d. Approve the Investor Entitlements (as defined in the Investment Agreement).
The motion will be heard on May 13, 2024.
On May 3, 2024 (the “Filing Date”), Clarkson Road Holdings Inc., Clarkson Road Developments GP Inc. and 2813427 Ontario Inc. (collectively, the “Applicants”) applied for and received an order (the “Initial Order”) for protection pursuant to the Companies’ Creditors Arrangement Act R.S.C.1985, c.C-36, as amended (“CCAA Proceedings”) from the Ontario Superior Court of Justice Commercial List (the “Court”).
Any terms not defined herein, have meaning given to them in the Initial Order.
The Initial Order, among other things:
In accordance with section 23 (1)(ii)(b) of the CCAA and the Initial Order, on May 7, 2024, a notice of the CCAA Proceedings (the “Notice”) was sent to all known creditors of the Companies who are owed $1,000 or more. A copy of the Notice may be found on the Notices and List of Creditors subpage of this website.
On May 10, 2024 (the “Comeback Date”), the Companies intend to return to Court to seek: