RioCan-HBC Limited Partnership et al., Receivership

RioCan-HBC Limited Partnership et al., various entities used in a real estate joint venture between RioCan and HBC, were placed into receivership on June 3 on application by RioCan.

RioCan owns about 22% of the joint venture — which holds interests in 12 properties — while HBC owns about 78%.

HBC obtained CCAA protection in early March. Unfortunately, the SISP conducted in the company’s CCAA proceedings did not result in a bid for the JV interests, nor did the lease monetization process result in any transactions for the JV leases. HBC has taken steps to disclaim certain of the leases and ceased paying monthly rents to the JV entities, which represented the main source of funds from which the JV entities would fund operations, service their secured debt obligations and pay rent to the JV landlords. Without the receivership, the JV entities would not have been able to meet their secured debt obligations to their lenders — including RBC Capital Markets, Desjardins and BMO — which are collectively owed over $703.6 million. 

FTI is the receiver.

Counsel is Goodmans for RioCan; Norton Rose Fulbright for the receiver; Stikeman Elliott and Reflect Advisors (financial advisors) for HBC; Bennett Jones for A&M as monitor in HBC’s CCAA proceedings; Blakes and Richter (financial advisors) for Restore Capital; Osler for Pathlight Capital; Ursel Phillips for HBC’s employees; Fasken for RBC; TGF for Oxford; Torys for Cadillac Fairview; and McCarthy Tétrault for BMO as administrative agent, Desjardins and TD Bank and Canada Life Assurance Company as mortgagees of Oakville Place.