Annapolis Management Inc., BSL Holdings Inc., Ruby LLP, 3337151 Nova Scotia Limited, and 4551650 Nova Scotia Limited, NOI

Annapolis Management Inc., BSL Holdings Inc., Ruby LLP, 3337151 Nova Scotia Limited, and 4551650 Nova Scotia Limited (collectively, the “Caryi Group”), a group of companies with an interesting real estate portfolio in Atlantic Canada, filed NOIs on January 20.

The companies hold title to, among other real property, the Halifax Club on Hollis Street, and The National Film Board building, the Freemasons Hall and the Tramway Building, each on Barrington Street, in Halifax, Nova Scotia.

The companies’ principal, Steve Caryi, had begun an ambitious plan to rehabilitate and build rental units in the Freemasons Hall and Tramway Building. However, due to rising interest rates, costs to complete and a lack of skilled trades, the Caryi Group began to experience liquidity issues in March 2020 and 2021.

Mr. Caryi passed away in 2023, and the companies have ceased all construction across the portfolio since his death. The Caryi Group had initially sought CCAA protection, but withdrew their application after lenders (Douro Capital et al.) comprising approximately 96% ($45.8 million) of the Caryi Group’s total estimated outstanding mortgage debt of $47.6 million brought a competing interim receivership application. The Court scheduled a hearing for January 24 for the lenders to bring a full receivership application.

On January 20, the companies filed an NOI. The receivership application was heard on January 24 and the decision is expected to be released today.

Deloitte is the proposal trustee and Grant Thornton is the proposed receiver.

Counsel is BOYNECLARKE for the Caryi Group and O’Keefe & Sullivan for the lenders.