Carolis inc. et al., Quebec-based real estate companies, obtained CCAA protection on April 24 listing approximately $22.6 million in liabilities, including approximately $4.6 million to BDC.

Carolis is involved in two main projects: the “Matane” project, which involves land intended for future development in Matane, Quebec, and the “Sacacomie” project, which includes an inn and rental chalets in Saint-Alexis-des-Monts, Quebec.

The company faced significant financial challenges due to the poor profitability of its Sacacomie resort project and high interest expenses on real estate loans which exceed its repayment capacity, leading to mortgage enforcement actions by secured creditors.

The purpose of the CCAA proceedings is to conduct a sale process for the Faubourg Mont-Bénilde property and potentially the Sacacomie project to generate liquidity, repay secured creditors, and stabilize operations.

Lemieux Nolet is the monitor.

Counsel is Devichy for Carolis, Beauvais Truchon for the monitor, Neil Peden for Offshore Finance, Bernier Beaudry for MAC Capital et al., and Stein Monast for Groupe Financier les Rives Inc.