Urbancorp Renewable Power

Urbancorp Renewable Power, an entity in the Urbancorp Group, a Toronto, Ontario-based property developer, was placed in receivership on June 28 on application by KSV Advisory, in its capacity as court-appointed monitor. The company manages four geothermal heating/cooling systems located in four real property development projects. In 2018, the court made an order approving a term sheet between Urbancorp Cumberland 1 LP ("Cumberland"), as secured lender, and the company, as borrower. Since the commencement of the CCAA proceedings, the company has had no income or cash flow sources apart from its loan with Cumberland. As such, the estimated repair costs for the geothermal assets far exceed the maximum amount available to the company under its loan. Without any income, the company has no ability to repay the outstanding amount of the loan absent a sale of the assets. This significant increase in estimated repair expenses constitutes a default on the term sheet. KSV Advisory was appointed receiver. Davies is counsel to the receiver.