Karwood Estates Inc. and Gregg Construction Ltd., CCAA

Karwood Estates Inc. and Gregg Construction Ltd., related real estate and construction companies with significant raw land holdings throughout the greater area of St. John’s and Paradise, Newfoundland & Labrador, obtained CCAA protection on June 5.

Within the past five years, the companies’ financial and operational performance has suffered due to a combination of factors, including unfavorable third-party actions (primarily regulatory actions taken by the Town of Paradise and Town of Spaniard’s Bay) and effects associated with the Covid-19 pandemic, including the interim slowdown of business activities, rising interest rates, and alleged aggressive lender behaviour, all of which have directly impacted the companies’ working capital.

The companies are in arrears with several of their lenders who have issued demands on their loans, including senior secured creditor the Newfoundland and Labrador Credit Union, owed approximately $3.6 million.

Grant Thornton is the monitor.

Counsel is O’Keefe & Sullivan for the companies.