Massive selloff of northern Ont. real estate in $90M bankruptcy down to 27 properties

The sale of more than 400 properties in northern Ontario following a massive real estate bankruptcy in 2024 is down to 27 listings, the sale of which faces obstacles such as squatters and property damage.

A group of 11 companies filed for insolvency under the Companies’ Creditors Arrangement Act (CCAA) in January 2024. It emerged that the companies owed $90 million to secured and unsecured creditors.

The companies owned 407 residential properties in Timmins, Sault Ste. Marie, Sudbury, Kirkland Lake, Capreol, Val Caron and Temiskaming Shores, including single-family homes and apartment buildings.

Since the January 2024 insolvency, CCAA monitor KSV Restructuring has been working to sell the residences for as much as possible to repay the roughly $90 million owed to mortgage holders.

Secured lenders were given the first chance to buy the properties, and by late 2024, they purchased 321 properties. The remaining 86 properties were put up for sale in a staggered process to avoid flooding the market and driving down sale prices.

“Over the last 10 months, 12 secondary credit bids and 47 sales to third-party home buyers … have been completed,” KSV said in its latest report, dated Jan. 21.

“Accordingly, as at the date of this report, 27 properties remain in the liquidation portfolio ... The net sale proceeds generated from the sold properties total approximately $6.98 million.”

The report also details challenges in selling the remaining properties. One challenge is resistance from debtors who hold second mortgages on the properties. Unlike primary mortgage holders who receive revenue from the sales, second-mortgage holders have not received anything.

But to sell the remaining properties, secondary mortgage holders must agree to lift their claims on each remaining property.

In one case, the sale price of a duplex in Timmins had to be reduced from $225,000 because one unit had been completely gutted. The price was reduced but despite receiving offers, it still hasn’t been sold.

“While offers were received at various price points ranging from $115,000 to $189,000 during this period, proposed transactions were repeatedly unable to be completed due to a combination of financing conditions and the refusal of certain second mortgagees to provide their consent to the discharge of their mortgages,” the report said.

KSV is now asking the court to approve the sale after it received an offer of $120,000.

“The first mortgagee, which holds a mortgage with a principal amount of $152,000, is the only stakeholder with an economic interest in the proposed transaction,” KSV said.

It has approved the sale, and KSV wants the court to order the transaction to proceed without approval of the second mortgage holder. It’s making similar requests for other properties in Timmins, the Sault and Temiskaming Shores.

One of the challenges is that delays in selling the properties is driving down property values. One multi-unit residence on Jubilee Avenue in Timmins has been damaged by some of the people living there.

“In November 2025, law enforcement activity at the property resulted in significant damage and debris, necessitating cleanup and repairs at a significant cost,” KSV said.

“The property has also been difficult to market due to uncooperative tenants, repeated break-ins and ongoing security concerns, which have impaired the listing agent’s ability to expose the property to the market in a conventional manner.”

The sale price has since been reduced to $95,000, compared to the $160,000 owed to the primary mortgage holder.

An even tougher situation faces the sale of a Spruce Street residence, which is now “vacant and uninhabitable and has been subject to repeated issues involving unauthorized entry and squatting, as well as other interactions with the City of Timmins,” the report said.

“On Nov. 18, 2025, a fire occurred at the property which was believed to be the result of arson.”

It’s expensive to monitor the property and keep squatters out, so KSV is recommending approving the sale of the property for $24,000, compared to the $150,000 owed to the first mortgage holder.

One property actually has a negative value. Located on Kimberly Avenue in Timmins, it was demolished by the city because residents said it had become a drug den.

But whoever buys it owes the city $67,447 in taxes, demolition costs and other charges. One buyer bid $7,000, but withdrew when told they would have to pay the city what it was owed.

Instead of selling it, KSV is asking the court to allow the city to assume ownership.

In total, it is asking for court approval to sell five properties in Timmins, one each in Temiskaming Shores and Sault Ste. Marie, and the transfer of the Kimberly Avenue property to the City of Timmins.

Offers have been accepted for the sale of another two properties in the Sault and five in Timmins. If those deals close, that will leave nine properties in the Sault to be sold and three in Timmins.

In addition, the monitor is asking to extend the CCAA period until July to allow time for the remaining properties to be sold.

A judge will make a decision at a hearing March 28. Read the full report here.