Adv. Guy Gissin, who is acting as special manager of the assets of collapsed Canadian real estate company Urbancorp estimates that the company's bondholders will recover more than half the money that the company owes them.
In his fifth report on his activity submitted to the court yesterday, Gissin writes that Urbancorp will receive repayment of CA$ 36 million (about NIS 105 million) in owners loans extended to its subsidiaries, thanks to progress made by the Canadian receiver of the four subsidiaries in selling their rights in construction projects.
Gissin also states that to the extent that a cash balance remains in any of the subsidiaries beyond the claims for covering debts presented to them, he intends to have the balance transferred to Urbancorp as the sole shareholder in the subsidiaries.
Urbancorp raised NIS 181 million last December in an initial offering of bonds on the Tel Aviv Stock exchange. Most of the money raised was used to repay bank loans.
A few months later, Urbancorp got into difficulties, and the subsidiaries applied for protection from their creditors in Canada, and a receiver was appointed to them. In response, Adv. Gissin was appointed special manager of the stock exchange listed company, and bankruptcy proceedings were opened against former controlling shareholder Alan Saskin.
Published by Globes [online], Israel business news - www.globes-online.com - on September 1, 2016
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