9304-7033 Québec Inc. (doing business as “Habitations Luma”) and 9251-7465 Québec Inc., Québec-based real estate development companies, obtained CCAA protection on June 25.
Habitations Luma is a real estate developer that acquired the former Hôtel du Lac Tremblant in 2019 to build a luxury condominium project “Projet Lago,” located in Mont-Tremblant. The project, which comprises two buildings and 69 units, is 95% complete, with 37 units sold, 14 under promise to purchase, and 18 unsold. However, the project encountered numerous challenges including construction delays due to COVID-19, legal disputes with neighbouring landowners, permitting issues and financial overruns exceeding $12 million.
The company’s construction loan from Desjardins (owed approximately $9.5 million) has been suspended, and Habitations Luma has relied on over $15 million in related-party loans to continue operations.
Several buyers are suing to rescind their purchase agreements due to incomplete amenities and trade creditors have registered legal hypothecs, preventing the release of sale proceeds from certain units.
The purpose of the CCAA proceedings is to conduct a SISP. Desjardins is providing a DIP loan.
MNP is the monitor.
Counsel is Fishman Flanz for the companies, Gowling WLG for the monitor, Dunton Rainville for Desjardins, Zaurrini Avocats for Construction Kingsboro inc., Therrien Couture Joli-Coeur for Acier d’armature Vimada inc., Blakes for Mark Hantho et al., Fasken for Maxime Boucher et al., and De Grandpré Jolicoeur for Syndicat des copropriétaires Lago Tremblant.
