Court to hear Château Royal purchase offer today

By Robert Frank
www.thesuburban.com

A prospective buyer has come forward for the insolvent Dollard des Ormeaux seniors residence Château Royal, according to court-appointed receiver Benoît Clouâtre. Quebec Superior Court will review offers to purchase the facility during a hearing today in Montreal.

Mr. Clouâtre told The Suburban that the eldercare centre’s owner, 4178092 Canada Inc., has received an offer to purchase the building and its assets. He declined to identify the prospective buyer.

“However, the sale has been contested in court, so the judge provided a noon, March 5, deadline to permit additional offers, if someone wants to submit one,” said Mr. Clouâtre, a partner in Deloitte’s Montreal practice. As The Suburban went to press, there was no indication as to whether any other offers had been received.

Another DDO seniors residence, Château Dollard, was declared bankrupt, Jan. 27. Both were operated by the same Toronto-based company, Liberty Assisted Living.

During a Feb. 29 court hearing, Justice Robert Mongeon also extended to April 13 the deadline for Château Royal to make a proposal under the Bankruptcy and Insolvency Acts as to how they will deal with their creditors.

Mr. Clouâtre said that Château Royal, which owes $6.4 million to unsecured creditors, is not bankrupt and that its Toronto-based owners continue to run day-to-day operations. He said that if a sale goes through, the final disposition of the seniors residence could be resolved well before April 13.

In the meantime, he added, friends and family should not be concerned for residents.

“I’m overseeing all the operations to make sure that everything gets paid for and [residents] get everything [they need],” the chartered accountant assured.

He observed that even if the court approves a sale today, the deal would not be concluded immediately.

He explained that it would take time to close the sale and do the due diligence that is normal for any large financial transaction, which is being handled by RBC Capital Markets Real Estate Group 

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