At least 75 millionaires from Quebec and regarding fifteen from Montreal have let themselves be seduced by the miraculous returns of the Huot Group’s real estate empire and are now rowing so as not to lose their money and save the furniture.
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” He has [embarqué] all the millionaires of Quebec”, illustrates an entrepreneur who himself invested heavily in this misadventure.
A major player in real estate in Quebec, Groupe Huot has been forced to put its construction sites on hold and to lay off workers in recent weeks following major financial problems.
Our Bureau of Investigation has spoken over the past few days to businessmen in the Capitale-Nationale region who have lent colossal sums to the company owned by Stéphan Huot.
Photo d’archives
Entrepreneur Stéphan Huot proudly poses alongside a pilot suit created by one of his companies, STEPHAN/H. The founder of Amazon, Jeff Bezos, as well as NASA have notably acquired these clothes.
Some hung up on us, others referred us to their lawyers, but a few agreed to discuss this saga for the first time, on condition of anonymity.
According to their testimonies, at least 75 millionaires from Quebec have invested no less than $221 million at an attractive interest rate of up to 12% to finance the Huot group’s projects.
“There are people who have borrowed once morest their house or their chalet to invest in it,” reveals a source.
“There are people who have put all their assets in there,” adds another.
The money of these millionaires was initially entrusted to two companies belonging among others to another Quebec businessman, Robert Giroux.
“They lent to Giroux, and Giroux lent to the Huot Group,” explains a person familiar with the matter.
Robert Giroux did not wish to comment on the situation, his lawyer informed us.
$900 million in mortgages
According to public documents consulted by our Bureau of Inquiry, the total amount of active loans on the buildings of the Huot Group now amounts to more than $900 million, of which $365 million comes from banking institutions and a few dozen have been provided by Montreal investors.
However, with inflation and the meteoric rise in interest rates, the Huot Group found itself unable to meet its obligations.
« [Huot] lost control of his affairs. He’s too scattered, he’s got too many companies […] There are people who have been irresponsible in this. We include ourselves in it: we trusted, ”continues an investor.
“Let’s say it’s beautiful shit”, summarizes another.
Meetings every day
Fifteen investors are now struggling with lawyers, bankers and accountants to try to resolve this impasse.
This group is working on a “rescue plan” which would ultimately aim for the takeover of the housing stock by investors as well as the relaunch of construction sites. The objective is to avoid bankruptcy, according to our sources,
“There are meetings every day. There is a desire to save the housing stock, to deliver housing, to pay suppliers, ”explains an informant.
No comment
Contacted by our Investigation Office, Stéphan Huot said he was surprised, on the phone, that we managed to reach him.
“I don’t have much to tell you, I think you know the current situation. […] It’s really boring, that thing. When we have news, you will be contacted, ”he said, before hanging up.
Its spokesperson, Florence Brouillard, subsequently indicated that she would not answer any of our questions on the subject.
“It’s a file of infinite complexity. In particular, because there is a very large number of people and companies involved at the moment and working around the clock to find solutions, for all, ”she said.
AN EMPIRE IN QUEBEC CITY
- Groupe Huot was founded in 1990 by Quebec businessman Stéphan Huot.
- It encompasses more than a hundred companies in some twenty varied sectors of activity, including construction, telemedicine, catering, aviation, helicopter rental and flight training.
- It is behind 22 real estate parks – mainly rental condos – solely in the territory of the Capitale-Nationale.
- Stéphan Huot owns Airmedic, which has been carrying out emergency medical evacuations with its own planes and helicopters for ten years.
- The Huot Group also includes the virtual health application Olive, which gives access to health professionals 24/7.
- Stephan Huot wowed Amazon founder Jeff Bezos and NASA with the flamboyant pilot clothes his company, STEPHAN/H, created.
295 legal mortgages
No less than 295 legal hypothecs have been registered by 78 creditors for a total of $72.1 million on the Huot Group or its subsidiaries, according to the most recent data from the firm Terram Technologies.
It’s not just investors who fear for their money.
Suppliers and subcontractors who have not been paid for the work carried out or the materials supplied to the Huot Group have also taken action.
Our Bureau of Investigation was able to speak with Martin Tremblay, of Déménagement Signature, an SME in Quebec.
The latter indicated that he currently has to deal with several unpaid invoices from Huot Group companies that are causing him a lot of financial stress.
“We were moving model condos until a few weeks ago. I got it for $30,000 [de factures impayées] “, he said.
At the end of March, his company filed a first appeal once morest Millénum Construction and other procedures are to be expected, according to him.
“For a small company like us, $30,000 is a lot of money, especially right now. We are on the lines of credit, ”he explained.
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