Economic recovery of select group | The bankers’ representative finally meets the real Boecklin

After coming up against Real Boecklin’s subordinates on several occasions, a representative of Group Selection’s bankers was finally able to speak with the bankrupt company’s president and founder. However, we will have to wait before we see more clarity in the financials due to the recent controversy surrounding the reorganization regulation.

This was revealed by the content of the second report of the lenders regulator PwC, signed by its representative Christian Bourque. The 17-page document, filed on Wednesday, also indicated that the seniors’ residence giant (RPA) and real estate builder would need 11.5 million to go by Christmas – an amount taken from the 20 million envelope offered by the union. Bank financing on a temporary basis.

“Expansion of Interim Financing […] Satisfies only very short periods and requires a new request to be made as soon as long-term expectations can be reviewed by the controller.

According to the document, Group Selection’s efforts to retain control of the company “interrupted” the “preparatory work” aimed at looking more transparently into the company’s finances, which led to its management. Companies Creditors Establishment Act (CCAA), on November 14.

in the saddle

The controller is now well installed at the controls. On Monday, Quebec’s Court of Appeal rejected a group selection request for leave to appeal against a lower court’s decision to hand over financial recovery to bankers seeking to repay a 272 million loan. The proceedings will continue this Thursday before the High Court, which is overseeing the judicial reshuffle.

Mr. Bouclin and his team spoke via videoconference on November 23. On Tuesday, another meeting was held with the owner’s son (Philippe-Olivier) to “discuss the arrangement”. […] Major short-term goals.

During his testimony during the hearings to determine who was responsible for the recovery, Mr. Bourque denied having direct access to Mr. Boecklin in the months leading up to the company’s collapse. The controller was finally able to meet the businessman a week before the company turned to CCAA.

Discussions were also held with Yves Mongo, Senior Vice President of Real Estate. This department is responsible for bulk payments of Group Selection, which is losing 7 million monthly.

“A detailed review of the construction projects will be carried out in the coming weeks,” Mr Bourque stressed.

Small reserves

According to the portrait painted by the controller, about 4.8 million remained in the coffers of the RPA owner and manager. The chest will continue to empty over the next few weeks. On December 24, only one million will remain. Hence a new tranche of financing will be required.

In the next few weeks, two appeals are planned for a total of 3.5 million in funding to ensure the maintenance of services in RPAs. Additionally, $700,000 was paid to honor the terms of the interim financing obtained by Group Selection before the courts set it aside.

Moreover, citing the “scope of the file”, PwC is asking for higher remuneration. The company wants to increase the “administrative burden” to 1.5 million. Mr. Bourque did not finish examining the company.

“As consolidation processes are still in their preliminary stages, the Comptroller wishes to return to court before the year-end holiday break to provide more information on the work completed and the work to be completed in the coming weeks,” it said. Report.

In total, Group Selection receivables as on November 14 stood at 904 million. Unsecured creditors have about $60 million to pay – and suppliers will end up empty-handed. Among the lenders, however, many companies are linked or are part of Group Selection.