Medican gets stay of creditors
Medican has been granted a second stay of creditors. The Medicine-Hat-based multi-family developer, which has been under the Companies’ Creditors Arrangement Act protection order since May 26, has been granted another month and a half to continue its restructuring process.
The company, which has built several large condo developments in Calgary and is still building Canvas in Millrise and Sanderson Village on Fish Creek Park, was given a two-month stay when it first went to court on June 11.
Since then, the company has been focusing on cutting costs, negotiating asset sales and securing partnerships, a Medican spokesperson says.
“Today, the efforts of Medican were recognized by the judge, who was pleased to see progress,” Lindsay Perry, marketing manager and communications co-ordinator for Medican, said in a statement.
“Assets are being sold at market value and all of Medican’s properties are now for sale with sound offers coming in.”
Some of Medican’s land in Sylvan Lake has been sold and another Medican property in Red Deer has several parties interested, she says.
The company must report back to court September 30.
“Medican will continue to restructure the company and reorganize its financial house, and it is confident it will have several more deals to finalize within the next month and a half,” explains Perry.
While it continues to work its way back to profitability, Medican is racking up sales and signing construction contracts, says its sales director.
Since the end of May, Medican has sold more than $11.5 million worth of condos, says Bill Cooper.
While the current real estate market slowdown has posed some challenges, there are still opportunities, he says.
“It’s all about getting ahead of the market,” says Cooper. “Price has become critical.”
Medican is currently selling condos in two Calgary developments — Sanderson Ridge on Fish Creek Park and Canvas at Millrise — as well as four others across the province.
In addition, sales are ongoing in two Kelowna developments, as well as one in Winnipeg and another in Bromont, Que.
While sales are continuing, the company is actively seeking buyers for some of its properties, including Sanderson Ridge, says Ty Schneider, who has been entrusted with overseeing the restructuring of Medican by court-appointed monitor RSM Richter.
He says offers on Sanderson Ridge are pending.
“We have cut costs to the tune of $500,000 per month. It has been challenging, but the restructuring plan is in place,” says Schneider.
Since the May 26 order, time has been spent reducing costs, recovering overpayments, negotiating asset sales, and securing partnerships, he says.
“Our goal is to return Medican to its core competencies,” says Schneider. “We need to focus on civil work, hospitals, singlefamily dwellings and affordable housing.”
The company is still shopping around for new contracts.
Medican recently secured a deal to build a multi-milliondollar assisted living complex in Okotoks.
Funded by the Alberta government and the non-profit, Calgary-based Brenda Stafford Foundation, the 152-unit seniors’ complex is located on a twohectare in the Sandstone area of Okotoks.
It is expected the project will employ 200 workers and take about 18 months to complete.
“We have a lot of experience in this type of construction,” says Jason Fleury, Medican’s director of operations. “These are the kinds of projects we want and can do very well.”
The company has also been awarded the construction management contract for the $8.5-million expansion of a seniors’ complex in Medicine Hat.
Medican will oversee construction of a four-storey, 40-suite complex.
The operator of the complex will be responsible for payments to all companies involved in the 11-month project.