Clarkson Road Holdings et al., CCAA

Clarkson Road Holdings et al., the owners of a residential development project located in Mississauga, Ontario, obtained CCAA protection on May 3, listing approximately $54 million in liabilities.

As a result of a dispute with Kenaidan Contracting, the general contractor, construction is on hold. Only 60% of the parking structure is at grade level, with the remainder below-grade and not fully covered or sealed. Given the status of the project, it is critical for certain work to continue to preserve and protect the site. However, due to a variety of factors including increased costs and the dispute with the construction manager, the companies are unable to satisfy their obligations as they become due.

Construction liens totalling approximately $27 million have been registered against the property and the companies have defaulted on their mortgage from CS Capital, owed approximately $21 million.

The purpose of the CCAA proceedings is to conduct a stalking horse SISP to sell the property quickly.

PwC was appointed monitor.

Counsel is McCarthys for the companies, Blakes for the monitor, SR Law for CS Capital, Miller Thomson for 10000861289 Ontario Inc., Laishley Reed for QRC Limited Partnership, Beard Winter for Dolente Concrete & Drain Company, and Norton Rose Fulbright for Kenaidan Contracting.

By: Dina Milivojevic