Urbancorp scales back on future developments; lays off staff in the wake of entering bankruptcy
Urbancorp scales back on future developments; lays off staff in the wake of entering bankruptcy.
“Unfortunately, the need to match expenses to revenues, together with our focus on existing projects and a scaling-back of future development, has required us to implement the laying off of a number of our valued employees,” Urbancorp CEO Alan Saskin said in a prepared statement to reporters Friday.
The developer has been relatively mum following the announcement that it has entered bankruptcy, but it has pledged to complete its current developments under construction while it endeavours to resolve its issues with Tarion, the organization responsible for providing warranties on new homes.
“Urbancorp remains focused on its core business of working, with its partners, to deliver the homes under construction,” Saskin said. “Urbancorp has differences with Tarion, the administrator of the Ontario New Homes Warranty Program.
“While we are in discussions with Tarion to resolve matters, we have also initiated an appeal process (that could take several months to conclude) against an order Tarion is seeking to revoke the registration of some Urbancorp companies.”
Toronto-based Urbancorp announced earlier this week it had started restructuring proceedings under the Bankruptcy and Insolvency Act in a bid to address debt issues.
“While Urbancorp's development operations are in Toronto, in December of 2015 it issued bonds to investors in Israel, who are interested in financing North American real estate development, and those bonds were listed for trading on the Tel Aviv Stock Exchange,” Saskin said. “ … “The Court processes involve procedural steps in Toronto and in Tel Aviv, and include many participants and regulatory authorities in each jurisdiction.”
