Selection Group | Fund transfers and absentee CEOs oppose creditors

“There is one main thing, the payments from the children to the two companies, I understand [qu’on m’a] We were given a document that was essentially a blank sheet of Word with the figures we put in,” Quebec’s Superior Court magistrate said Thursday during pleadings.

During the day, he did not hesitate to express his concerns about some aspects of the strategies of the two parties, each of which wants to put their representative in charge during the reconstruction. While RPA prefers giant FTI and its candidate Yannick Blanchard as chief restructuring officer, creditors want to see PwC in charge.

“Priority Payments”

Mr. Two companies controlled by Bouklin’s children are used to pay subcontractors and suppliers who do marketing, IT and construction work for the selection. Since last week, they have received about 2.5 million, including 1.5 million on November 14, the day the company secured protection from its creditors. Companies Creditors Establishment Act (CCAA).

Many are questioning the payment of these amounts when, as of June 30, the company owed $118 million to suppliers and general creditors. Lenders talk about “priority payments.”

“I’ve been trying to pay Bell Canada about $400,000 for the last few days and I don’t see what this has to do with engineering and marketing,” Judge Pinsonault commented about the information provided by the selection.

In a press release late Thursday, Mr. Boecklin’s children said the 1.5 million a month payments to the family businesses were not used to “maintain” their “rhythm of life”, creditors suggested. The amounts are used to “finance” their companies, they plead.

“lots of reserves”

The judge did not hesitate to intervene during the trial. He interrupted Selections’ attorney Guy Martell to express his concerns about the temporary financing proposed by RPA’s builder and manager, which resulted in the half-million payout.

“If the court did not approve this financing, it would mean the company lost only $500,000,” the magistrate noted. I have to tell you that I have a lot of reservations about this financing and conditions. »

The representatives of the banking syndicate will also have to answer questions about the “stabilization”, “restructuring” and “monetize” option, which will burn 7 million monthly. Justice Pinsonault said he was challenged by a provision that allows financial institutions to benefit from certain protections relative to other creditors. Their lawyer Luke Morin replied that the banking syndicate was watering down its wine.

“This condition will be lifted,” the lawyer assured the judge.

“The Great Absence”

Throughout the proceedings, Selection’s president and founder, Real Boecklin, was conspicuous by his absence. The situation monopolized part of the exchange. According to M^e Morin, the businessman’s “great absentee” for the week, was unable to rectify the situation despite his creditors’ harsh criticism of him.

“In a 20-year career […]This is the second time I have seen it [PDG] Hiding while issuing CCAA process, Smt.^e Morin. However, we have good questions to ask him. Why did you pay 2.5 million to your family’s sole beneficiary entity when there are 118 million supplier accounts in the selection? »

At the end of the day came the aftershock. M^e Martel revealed that his client and his children followed the hearings remotely and that none of the creditors demanded that Mr. Boecklin come to testify.

“Four days later, when no one asked me to question Mr. Boecklin, Mr. Martel replied. No one asked me to make sure he was there because we had questions for him. »

The businessman’s lawyer claimed that he was not physically present to resolve “operational issues” – the management of his business.