2023-05-02 01:15:22
One of the companies of the Huot Group, which has been in financial difficulty for several weeks, places itself on the protection of the Creditors Arrangement Act and intends to resume its industrial sites.
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The Huot Group announced Monday evening the signing of a memorandum of understanding with its creditors, which will ensure the continuity of operations of the Transrapide distribution center, located on the south shore of Quebec.
“For the past few months, the management of the Huot Group has been working with its advisers and some of its creditors to find solutions to the financial problems experienced by certain companies in the Group, including Transrapide,” reads a press release.
Transrapide will be placed under the protection of the Creditors Arrangement Act. The sites should be resumed and industrial operations should continue, assures the company.
“Thus, everyone will keep their jobs, the construction sites in progress will be able to resume and customers will continue to obtain excellent service”, continues the missive, which specifies that “the current business continues and no interruption of service or closure, even temporary , is not planned”.
Located in Lévis, the Transrapide distribution center was to be equipped by the end of summer 2023 with a dozen buildings, built in different phases, serving as warehouses for various commercial and industrial tenants.
The Huot Group declined to comment further on the case.
Remember that our Bureau of Investigation revealed last week that a Lévis company claiming more than $7 million from the Huot Group had gone to court to remove Transrapide’s control of certain buildings.
The company Finar Bâtiments d’acier had filed an emergency procedure at the Quebec courthouse to compel Transrapide to cede control of some of its warehouses to an insolvency trustee. The case was due back in court this week.
Note that this announcement, however, has no impact on the portion of the Huot Group’s rental property stock, whose construction sites were put on hold in mid-February. A group of investors are still working on a rescue plan that might help relaunch construction sites and pay creditors.
In mid-April, the Huot Group had more than $900 million in active loans on its buildings. No less than 334 legal mortgages totaling $108.5 million had been registered on buildings of the Huot Group and its subsidiaries, according to data from the firm Terram Technologies.
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