Careadon Corp., receivership

Careadon Corp., which operates and owns a seniors residence in St. Albert, Alberta, and two related companies were placed in receivership on July 7. The receivership application was brought by UMC Financial Management Inc., owed $68.8 million. Careadon has struggled with its finances and the construction of the residence. Only 54 out of 115 units have received occupancy permits, and only 8 units have been leased. The lack of leased units has significantly impacted Careadon’s cash flow and ability to pay for essential operating expenses. EY was appointed Receiver, represented by McLennan Ross. Miller Thomson is counsel for UMC Financial and Swainson Miki Peskett is counsel for HMT Holdings, owed approximately $13 million.

By: Dina Milivojevic