For further information contact:

 

Kristin Gray

Phone: 780 705 0073

kgray@bowragroup.com

Kolsy Homes Ltd. and Rivairo Capital Corporation

 

Overview: 

 

On July 9, 2018 (the “Filing Date”) Kolsy Homes Ltd. and Rivairo Capital Corporation (collectively, the “Companies” or the “Applicants”) applied for and received an order (the “Initial Order”) for protection pursuant to the Companies’ Creditors Arrangement Act (“CCAA”), R.S.C.1985, c.C-36, as amended, from the Court of Queens Bench for Saskatchewan (the “Court”). The Initial Order includes among other things, a stay of proceedings against the Companies, and the appointment of The Bowra Group Inc. as monitor of the Applicants (“Bowra” or the “Monitor”).

 

The Initial Order, among other things:

 

1. Approved a stay of proceedings up to and including August 8, 2018 (“Stay Period”);

2. With respect to the property of Rivairo Capital Corporation (“Rivairo”):

i. Granted a first ranking charge over 2.5% of the proceeds (after closing costs but before any payment to KV Capital Corporation) arising from the completion of Milestone #1 (the “Rivairo Administration Charge”);

ii. Authorized Rivairo to obtain and borrow funds under a commitment letter from KV Capital Corporation (the “Interim Financing Lender”), in the maximum amount of $600,000;

iii. Approved a second ranking charge to secure the Interim Financing (the “DIP Lender’s Interim Financing Charge”) in favour of the Interim Financing Lender;

iv. Granted a third ranking charge for pre-existing security interests held by the Interim Financing Lender;

 v. Granted a fourth ranking administration charge, in the amount of $250,000 (the “Rivairo Second Administration Charge”); and,

3. With respect to the property of Kolsy Homes Ltd. (“Kolsy”):

i.  Granted a first ranking administration charge, in the amount of $250,000 (the ”Kolsy Administration Charge”).

 

In accordance with section 23 (1)(ii)(b) of the CCAA and the Initial Order, a notice will be sent within 5 days of the Filing Date to all of the Applicant’s creditors who are owed $1,000 or more, excluding any individual employees, former employees with pension and/or retirement savings or benefits plan entitlements, and retirees and other beneficiaries who have entitlements under any pension or retirement savings plan.

 

File Updates:

On August 7, 2018, the Companies applied for and received an order (the “Extension Order”) extending, the Initial Order as follows;

 

  1. With respect to Rivairo, the Initial Order is extended until 11:59 p.m. on Wednesday, October 31, 2018; and,

  2. With respect to Kolsy, the Initial Order is extended until 11:59 p.m. on Thursday, September 6, 2018.

 

On September 4, 2018 Kolsy Homes Ltd. withdrew its application for interim financing and a further extension of the stay of proceedings that was scheduled to be heard on September 5, 2018. Accordingly, Kolsy has exited CCAA protection and there is no longer a stay of proceedings in place.

 

On October 26, 2018, the Companies applied for and received an Order extending, the Initial Order as follows;

  1. With respect to Rivairo, the Initial Order is extended until 11:59 p.m. on Tuesday, January 15, 2019.

 

On January 15, 2019, the Companies applied for and received an Order extending the Initial Order as follows:

   1.   With respect to Rivairo the Initial Order is extended until 11:59 p.m. on Thursday, January 17, 2019.

 

Pursuant to an Abridgement of Service Order granted January 15, 2019, Rivairo was granted leave to abridge the timeline for service for an application for a further Order for additional interim financing in these proceedings to 9:00 a.m. on Thursday January 17, 2019.

On January 15, 2019, the Companies applied for and received an Order extending the Initial Order as follows:  

    1. With respect to Rivairo the Initial Order is extended until 11:59 p.m. on Tuesday February 26, 2019.


The Order granted on January 17, 2019 also declared the City of Airdrie as a critical supplier within the meaning of section 11.4 of the CCAA. The City of Airdrie was granted a critical supplier's charge (the "Deposit Security Charge") in the amount of $313,000 as further described in the Deposit Security Order. The City of Airdrie in its capacity as a critical supplier of Rivairo was ordered to provide approval to register the Phase 2 subdivision plan.  Rivairo was also authorized to obtain and borrow funds under an additional interim financing facility (the "Additional DIP Facility") from KV Capital Corporation in the amount of $187,000 to finance the cost of a deposit to be held in trust for the benefit of the City of Airdrie, the mechanisms of which are described further in the Order.


Any offers for the purchase of the Rivairo lands, excepting the offers for the purchase of the subdivided titles for the seven completed townhomes, are to be delivered to the Monitor for review by no later than 11:59 p.m. on Wednesday February 13, 2019.

 

On February 26, 2019, the Companies applied for an received an Order extending the Initial Order as follows:

 

  1. With respect of Rivairo the Initial Order is extended until 11:59 p.m. on Monday, April 29, 2019.

 

The Order granted on February 26, 2019 approved the purchase and sale agreements for the Seven Townhomes and prescribed a process for obtaining Vesting and Distribution Orders upon registration of the Phase 2 subdivision plan.  Further, the Order also approved a credit bid by KV Capital Inc., or its nominee, for purchase of the remaining Phase 2 lands and prescribed a process for obtaining a Vesting Order. Once the titles of the Seven Townhomes and the Phase 2 remaining lands have vested and the proceeds have been distributed in accordance with Orders the Monitor will file a Discharge Certificate with the Court terminating these CCAA proceedings.

 

Court Orders

Order (Approval, Vesting and Distribution Order) – Unit 82  July 4, 2019

Order (Approval, Vesting and Distribution – Unit 82) – April 25, 2019

Order (Approval, Vesting and Distribution – Unit 83) – April 25, 2019

Order (Approval, Vesting and Distribution – Unit 84) – April 25, 2019

Order (Approval, Vesting and Distribution – Unit 85) – April 25, 2019

Order (Approval, Vesting and Distribution – Unit 86) – April 25, 2019

Order (Approval, Vesting and Distribution – Unit 87) – April 25, 2019

Order (Approval, Vesting and Distribution – Unit 88) – April 25, 2019

Order (Credit Offer Sale Approval & Vesting) – April 11, 2019

Order (Amending Fourth Extension, Interim Financing and Subdivision Order)

 March 15, 2019

Order (Fifth Extension) – February 26, 2019

Order (Consent) – February 14, 2019

Order (Title Lock) - January 17, 2019

Order (Deposit Security) - January 17, 2019 

Order (Fourth Extension, Interim Financing and Subdivison) - January 17, 2019 

Order (Third Extension) - January 15, 2019

Order(Abridgement of Service) - January 15, 2019

Order (Application for Extension Order) - October 26, 2018
Order (Costs Allocation) - October 26, 2018
Order (Costs of Proceedings) - October 26, 2018

Order (Sale Approval Vesting and Distribution) - September 5, 2018

Order (Costs, Reports and Activities) - September 5, 2018

Order (Application for Extension Order) – August 8, 2018 

Order (Sealing) - July 19, 2018

Order (Amending) - July 19, 2018

Initial Order – July 9 2018

Order (Abridgement of Service) – June 8, 2018

Court Documents

Originating Application

Affidavit of Kurt Kolisnek - June 11, 2018

Exhibits to Affidavit of Kurt Kolisnek – June 11, 2018

(compressed file) Exhibits to Affidavit of Kurt Kolisnek – June 11, 2018

Affidavit of William RI Brunsdon – June 22, 2018

Affidavit of Brenda Scislowicz – June 25, 2018

Affidavit of Shawna Schira-Kroeker – June 25, 2018

Supplemental Affidavit of Kurt Kolisnek – June 27, 2018 

Affidavit of Ashley Melz (redacted) – July 6, 2018

Affidavit of Glen Paziuk – July 6, 2018

Affidavit of Beverley Elaine Kolisnek - July 6, 2018

Affidavit of Ashley Melz - July 6, 2018

Affidavit of Kurt Kolisnek sworn July 9, 2018

Brief of Law – Initial Order

Brief of Law – Diamond North Creditor Union

Supplemental Brief of Law

Draft First Extension Order

Affidavit of Muthui Mwangi - August 2, 2018

Affidavit of Kurt Kolisnek - August 2, 2018

Notice of Application – Kolsy September 5 2018

Affidavit of Kurt Kolisnek sworn August 30, 2018

Draft Sale approval, Vesting and Distribution Order

Draft Second Extension and DIP Order

Affidavit of Kurt Kolisnek - October 22, 2018

Draft Third Extension Order

Notice of Application - October 28, 2018

Affidavit of Kurt Kolisnek - January 8, 2019

Notice of Application - January 15, 2019

Third Extension Order

Affidavit of William Czaban - January 14, 2019

Third Extension Order – Amended

Notice of application - January 17, 2019

Application Without Notice – February 14, 2019
Draft Consent Order

Notice of Application – February 26, 2019 

Draft Fifth extension Order

Affidavit of Kurt Kolisnek – February 22, 2019

Brief of Law of KV Capital Inc

Draft Amended and Restate Order

      (Approval, Vesting and Distribution – Unit 82)

Affidavit of Carmen Balzer – July 2, 2019

Draft Redline Order

Application Without Notice

Filed Discharge Certificate – December 6, 2019

Filed Closing Certificates Unit 82 to 88 – December 6, 2019

Notices to Creditors

Notice to Creditors – July 13, 2018

Reports of the Monitor

Monitor’s Fifth Report – February 20, 2019

Monitor's Fourth Report - January 9, 2019

Monitors Third Report - October 22, 2018

Allocation Report – October 1, 2018

Monitor’s Second Report – August 30, 2018

Monitors First Report- August 2, 2018

 
Creditor Listing

Kolsy Homes Ltd. – Creditor Listing

Rivairo Capital Corporation – Creditor Listing

Service Lists

Service List – January 7, 2019

Vancouver Office: 

PO Box 72, Bentall One

505 Burrard Street, Suite 430

Vancouver, B.C.  V7X 1M3

Tel: 604 689 8939

Fax: 604 689 8584

Edmonton Office: 

TD Tower

Suite 1411 – 10088 102 Avenue

Edmonton, AB T5J 2Z1

Tel: 780 809 1224

Fax: 780 705 1946

 

 
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