Ashcroft Homes Group, CCAA

Ashcroft Homes Group, a group of companies in the business of purchasing, developing and operating residential communities in the Ottawa area, obtained CCAA protection on December 5.

The debtors are part of a broader group of affiliated companies of which David Choo is the founder and controlling mind. Seven of the debtors are essentially single purpose entities which own one of the residential communities, while the eighth owns the head office premises of the Ashcroft Homes Group and provides various services to other members of the Group.

In recent years, various members of the Ashcroft Homes Group have encountered liquidity issues related to rising interest rates and a decline in occupancy rates, leaving the companies with insufficient liquidity to meet their current debt obligations.

The companies list over $393 million in liabilities, including nearly $285 million in secured debt to lenders including CMLS Financial, ACM Commercial Mortgage Fund, Institutional Mortgage Capital Canada, Central 1 Credit Union, Peoples Trust Company, Equitable Bank and Canadian Western Bank.

Grant Thornton is the monitor.

Hawco Peters and Associates is the financial advisor to the Ashcroft Homes Group.

Counsel is Mann Lawyers and Blue Rock Law for Ashcroft Homes and Osler for the monitor.