Med­i­can gets stay of cred­i­tors

Calgary Herald - Calgary Herald New Condos - - New Condos - MARTY HOPE AND KATHY MCCORMICK CAL­GARY HER­ALD

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.

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