Only a handful of the hundreds of residential properties linked to a massive real estate bankruptcy in northern Ontario remain to be sold, according to the firm overseeing the process. The monitor for the Companies’ Creditors Arrangement Act process, Alix Partners (formerly KSV) issued its latest report July 21. That report said 67 properties have been sold since the last update, generating proceeds of $9.49 million. That leaves seven properties remaining to be sold. Companies went under in 2024 A total of 11 companies declared for protection under the CCAA in January 2024. 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. The holdings totalled 631 rental units. The companies claimed the properties were worth $140 million, and borrowed $81.5 million from first mortgage holders and $8.6 million from second mortgage holders. But that estimate turned out to be inflated, and after all the properties are sold, unsecured creditors will still be owed $50 million or more. “The monitor expects that the principal amount of claims on account of just the promissory notes and mortgage/charge deficiencies to exceed $50 million,” the report said. However, there will only be about $800,000 -- a “nominal” amount -- for those lenders to claim. $50M owed, $800K available The report recommends setting aside any claims for interest or other fees, since the amount available to pay lenders only covers a fraction of the amount owed. “The monitor believes that limiting the promissory note and mortgage/charge deficiency claims to only the ‘principal’ amount owing is fair, reasonable and appropriate in the circumstances of this particular case,” the report said. Among the final properties to be told is one on Toke Street in Timmins. It was listed in October 2025 for $225,00, a price later lowered to $198,000. “In January 2026, nearly two months after the property was first listed, the monitor received two competing offers … in the amounts of $209,000 and $135,000,” the report said. “The Monitor accepted the offer in the amount of $209,000, subject to obtaining the requisite lender consents.” At that price, the lender stands to lose about $56,500. The monitor has been unable to get approval of all mortgage holders to complete the sale, and so is asking the courts to allow the sale to proceed. It’s also seeking to extend the process until January 2027 to allow it to sell the remaining properties and distribute any proceeds to the lenders. Read the full report here.
