Kolsy Homes

Kolsy Homes, a Saskatoon, Saskatchewan-based company that acquires and develops lands in Saskatchewan, along with Rivairo Capital Corporation, a related company, filed for protection under the CCAA on July 9. The sole asset of Rivairo is 5.4 acres of land in Airdrie, Alberta that has been subdivided out for the development of townhomes and condos (the "Rivairo Project"). Based on Rivairo's aggregate secured indebtedness of $9.4MM, the current value of the Rivairo Project, if sold in a forced-liquidation scenario, would be insufficient to pay all of the company's secured obligations that are due and owing. Moreover, the company currently does not have enough funds to pay any amount of the $3.6MM it owes to unsecured creditors. Similarly for Kolsy, the aggregate value of its assets - which is approximately $3.3MM - would be insufficient to pay its secured obligations as they become due. The only income that Kolsy receives is $7,600 in annual rent on the 143.6 acres of land that it owns in Corman Park. During the CCAA proceedings, KV Capital will be providing $600.0M in interim financing. Counsel is The W Law Group for the companies, MLT Aikins for The Bowra Group and Bishop & McKenzie for KV Capital.