DDO seniors residence owes unsecured creditors more than $6.4 million

Château Royal faces March 2 deadline

By Robert Frank
www.thesuburban.com


The Suburban has obtained receivership documents for Château Royal, one of two financially troubled seniors residences in Dollard des Ormeaux.

They show that on Nov. 9, its Toronto-based owners filed a notice under the Bankruptcy and Insolvency Act that they will make a proposal as to how they will deal with their creditors. Quebec Superior Court has given them until March 2 to file the proposal.

Court documents name Kingsett Canadian Real Estate Income Fund as “the debtor’s principal secured creditor” and stated that RBC Capital Markets has been engaged “to conduct a marketing process in order to seek strategic partners, investors and/or potential purchasers.”

Château Royal’s court-appointed interim receiver, Benoît Clouâtre, a partner in Deloitte’s Montreal practice, told The Suburban in an interview that “we were appointed [interim] receiver on Nov. 24.”

A separate, Jan. 13, Quebec Superior Court judgment identified a $15 million loan by Kingsett (not $50 million, as reported last week), secured by shares of a nearby seniors residence, Château Dollard.

Château Dollard, which is owned by the same numbered company as Château Royal was declared bankrupt, Jan. 27. Both were operated by Liberty Assisted Living of Toronto.

In addition, Deloitte’s list shows unsecured creditors are owed more than $6.4 million, including $283,034 owed to the town of Dollard des Ormeaux.

Mr. Clouâtre noted that “as an interim receiver, you are there to protect interests but you are not in possession of the company, which is continuing to operate on its own.”

“We’re under the stay until March 2,” he concluded.

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