Urbancorp announces restructure, asset sale

Homebuilder Urbancorp has announced restructuring proceedings, including the proposed sale of some assets, under the Bankruptcy and Insolvency Act.

The court process is designed to ensure that Urbancorp can complete construction on 1,050 homes in the next two years, according to a late Friday news release.

There was no answer at the company’s offices on Friday and a spokesperson named on the news release said there would be no further comment.

The release quotes CEO Alan Saskin saying: “This will allow us to reduce debt in an efficient manner while continuing to focus on our core business.”

The restructuring involves Urbancorp Group and management company and five subsidiaries: Urbancorp Downsview Park Developments Inc., Urbancorp St. Clair Village Inc., Urbancorp Lawrence Inc., Urbancorp Mallow Inc. and Urbancorp Patricia Inc.

“The filing companies will work closely with the proposal trustee, KSV Kofman Inc., to stabilize operations, preserve and protect asset value for stakeholders and pursue the sale process,” according to the release.

The agency that issues warranties for homebuilders in Ontario threatened to withdraw Urbancorp’s registration on 17 projects last month.

On Friday, its website noted that the restructuring impacts only the companies named in the release and that no condos were mentioned or included.

“There is no immediate change or impact to the warranty process or coverage for Urbancorp customers,” according to the site.