La Cité Médicale Inc., Receivership

La Cité Médicale Inc., which is part of the ELNA Medical Group and operates two medical clinics located in the Québec City region, was placed in receivership by Fiera Enhanced Private Debt Fund LP, owed approximately $7.8 million.

The clinics were recently acquired by Elna and are not included as part of the Elna Group’s recent CCAA proceedings.

La Cité Médicale has approximately 70 employees and is affiliated with approximately 75 physicians.

In or around October 2024, Fiera learned that La Cité Médicale had defaulted on its reporting requirements to Fiera and that it had distributed an amount of at least $900,000 to entities owned by its sole shareholder and director, Laurent Amram, during the second quarter of the 2024 fiscal year.

In November 2024, it was discovered that less than one month after the closing of the transaction pursuant to which Amram acquired La Cité Médicale, La Cité Médicale renegotiated its lease to extend the term and increase the monthly rent in consideration for a $1 million loan from the landlord.

Furthermore, the CCAA proceedings initiated in respect of certain other members of the Elna Group constitute a serious threat to the going concern operations of La Cité Médicale.

Richter is the receiver.

Counsel is McCarthy Tétrault for Fiera and Norton Rose Fulbright for the receiver.