An insolvent collection of companies with overlapping owners has been ordered to sell off 79 per cent of their residential properties, including 38 of their 51 Greater Sudbury sites.
In total, the group of companies was ordered to sell 323 properties in Northern Ontario, of which 253 are tenanted, according to a court order issued on Dec. 6. The purchasers will take on existing leases, and sale proceeds will help pay down creditor debt.
When the companies declared insolvency and entered creditor protection earlier this year, they reportedly owed creditors $144,350,000, including at least $363,372 within Greater Sudbury. Of this, $283,704 is owed to the City of Greater Sudbury and $38,618 is owed to Greater Sudbury Utilities.
Below is an interactive map of the properties that have been purchased. Hover over the point to see the name of the purchaser.
Ontario Superior Court Justice Peter J. Osborne’s ruling found that the number of people, including secured and unsecured lenders, who were “adversely affected by this entire situation is significant."
“The impact on them, their lives and their life savings is profound, as was clear from a number of comments made by many of those parties to the Court today.”
Purchasers have been lined up for the 323 properties. From who’s buying these properties, it doesn’t appear as though an influx of property sales will be flooding the affected marketplaces.
Of the 38 Greater Sudbury properties listed, 25 are being purchased by Big North Capital Inc., which is described in a court document as “a vehicle created by a number of secured lenders to finance and hold a number of the properties in an efficient manner.”
They are one of a handful of companies to sign credit bid asset purchase agreements to procure the 323 properties, and bid the face value of the first and second mortgages of properties being liquidated.
It was deemed by the courts "impractical to list and attempt to sell all 323 properties individually."
The companies’ 51 Greater Sudbury properties comprise 78 rental units.
The main purpose behind CCAA proceedings is “to create a stabilized environment to enable the applicants to preserve and maximize value for their stakeholders and provide the stability and liquidity necessary to complete value-accretive (increasing) renovations to their portfolio of residential homes.”
In 2022, the company divested of 223 residential properties in an attempt to stave off insolvency, as well as receive 121 second mortgages.
The prospect of selling additional properties has come up, but there’s concern it will “result in depressed recoveries for investors and/or will take several years to complete as a result of current depressed market conditions in the various communities in which the properties are located.”
Companies involved in this insolvency case include Balboa Inc., DSPLN Inc., Happy Gilmore Inc., Interlude Inc., Multiville Inc., The Pink Flamingo Inc., Hometown Housing Inc., The Mulligan Inc., Horses in the Back Inc., Neat Nests Inc. and Joint Captain Real Estate Inc.
They are all affiliated with SIDRWC Inc., which operates as SID Developments, SID Management Inc. and 2707793 Ontario Inc., which operates as SID Renos.
The creditor protection process is ongoing, with the latest Dec. 6 court order extending its stay period to Feb. 28, 2025.
The following 38 Greater Sudbury properties have been ordered to be sold:
- 295 Van Horne, Sudbury ON P3B 1J1 Sudbury
- 390 Dell St, Sudbury ON P3B 2M1 Sudbury
- 521 Clinton Ave, Greater Sudbury ON P3B 2S8 Sudbury
- 721 Howey Dr, Sudbury ON P3B 1G9 Sudbury
- 93 Logan Ave, Greater Sudbury ON P3C 3E3 Sudbury
- 336 Eva Ave, Sudbury ON P3C 4N3 Sudbury
- 354 Antwerp Street, Sudbury ON P3C 4M7 Sudbury
- 431 Frood Rd, Sudbury ON P3C 4Z9 Sudbury
- 531 Tedman Ave Sudbury, ON P3C 5B1 Sudbury
- 740 Martindale Rd, Sudbury ON P3E 4H7 Sudbury
- 11 Pietro Street Sudbury
- 340 Mabel Avenue Sudbury
- 349 Burton Avenue Sudbury
- 4 Ferguson Avenue Capreol
- 579 Elm Street Sudbury
- 973 Lorne Street, Sudbury Sudbury
- 118 Kathleen Street, Sudbury ON Sudbury
- 332 Eva Avenue, Sudbury, ON Sudbury
- 1244 Martindale Road, Sudbury ON P3E 4J5 - SOLD NOV 15 Sudbury
- 348 Poplar St, Sudbury ON P3C 2C3 & SCOTIA 1.0 Sudbury
- 369 Suffolk Lane, Sudbury ON P9C 4W8 Sudbury
- 374 Struthers St, Greater Sudbury ON P3E 1Y8 Sudbury
- 381 Eva Ave, Sudbury ON P3C 4N2 & SCOTIA 1.0 Sudbury
- 403 Lloyd St, Sudbury ON P3B 1P4 Sudbury
- 452 Dupont St. Sudbury, ON P3C 2T6 & SCOTIA 1.0 Sudbury
- 455 Percy Ave, Sudbury ON P3A 1X5 & SCOTIA 1.0 Sudbury
- 536 Montague Ave Sudbury, ON P3C 4G8 & SCOTIA 1.0 Sudbury
- 6 Bloor St, Sudbury ON P3C 2K2 Sudbury
- 571 Lorne Street, Sudbury Sudbury
- 70 Diorite Street, Sudbury Sudbury
- 1621 Second St, Val Caron ON P3N 1K1 Sudbury
- 221 Dell St, Sudbury ON P3C 2Y5 Sudbury
- 81 Jean Street, Sudbury, ON, P3C 4W2 Sudbury
- 325 Montague Ave, Sudbury, ON P3C 4G4 Sudbury
- 10 Stull Street, Capreol ON P0M 1H0 Sudbury
- 342 Donovan Street, Sudbury ON P3C 2Z5 Sudbury
- 687 Cambrian Heights Drive, Sudbury ON P3C 5C3 Sudbury
- 697 St Clair Street, Sudbury ON P3E 4G9 Sudbury
Tyler Clarke covers city hall and political affairs for Sudbury.com.
