2039882 Ontario Limited o/a Shelter Cove, which operates a land lease waterfront community on owned land on the north shore of Lake Erie, obtained CCAA protection on January 18, listing approximately $36.7 million in liabilities, including approximately $20.1 million in secured debt to KHL Investments USA Inc.

A confluence of factors – including a delay in delivery of electrical transformers used in construction which led to delayed closings of modular home sales, as well as inflationary pressures and the rise in variable interest rates – has left the company unable to meet its debt service obligations, including to KHL.

KHL brought a cross application to appoint a receiver, but the company’s CCAA application was ultimately successful.

REL-BC Holdings Ltd. will be providing a DIP loan.

PwC is the monitor.

Counsel is Reconstruct for the company, Bennett Jones for the monitor, Robins Appleby for the DIP lender and Lerners for KHL.

By: Dina Milivojevic