The real estate developer Stéphan Huot, affected by financial difficulties for several weeks, officially leaves all his functions in the subsidiary Transrapide, which is now considering its restructuring.
Stéphan Huot resigned on May 8 from “all his positions, including as administrator and manager” of Transrapide, which was the industrial subsidiary of the Huot Group. The promoter remains at the head of the other companies of the conglomerate, confirmed his spokesperson.
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This resignation stems from the memorandum of understanding that Stéphan Huot signed with his lenders on May 1 to ensure the continuity of operations of the distribution center, under the Creditors Arrangement Act.
This file returned to court on Friday, while lenders – who have invested colossal sums in Transrapide – want to regain control of the company, pay creditors and restart construction work on the warehouses of the distribution center as quickly as possible. possible.
Contacts have already been established with subcontractors who could be rehired to complete the works, which have been on hold since mid-February. To generate cash, at least four buildings could be put up for sale, which could bring in up to $20 million, we learned.
“You have a group of people who are basically offering to pay everyone,” summed up one of the lawyers representing a group of lenders.
Their plan aims to save Transrapide from bankruptcy, which has a debt of $ 176.8 million, according to the firm specializing in insolvency Deloitte, which acts as controller in this case.
$72.5 million “pumped”
Judge Jean-François Émond, who hears this case, questioned himself in particular about the management of finances for the rest of things, recalling that “several tens of millions of dollars had already been pumped” – “advanced”, if is it included – in Transrapide.
Indeed, $72.5 million in advances granted by Transrapide would rather have been used to finance the activities of the Huot Group’s real estate portfolio, according to Deloitte. The latter ensures that steps have been taken to ensure that the funds are “used in the screenings presented and not for other purposes”.
Claims processing
Deloitte has also submitted a request to the court to begin processing and analyzing the claims, an exercise that could be completed by the end of June.
Nearly 200 legal hypothecs have been registered on Transrapide buildings by subcontractors who are claiming more than $97 million since the financial collapse of the Huot Group. Referring to duplicates, however, the firm estimates that construction receivables are more in the order of $27.2 million.
Some creditors have expressed reservations about the proposed plan. The judge intends to rule next week.
Financial meltdown
A major player in real estate in Quebec, the Huot Group has been experiencing major financial problems since mid-February, which would be attributable to inflation and rising interest rates.
Since then, construction sites have been suspended, workers have been laid off and Groupe Huot companies – the event portion of the Capitale Hélicoptère complex, the Le Commandant resto-bar and GoHelico – have closed their doors.
Very discreet in the public sphere since the beginning of his debacle, Stéphan Huot has put up for sale his luxurious mansion in Quebec City for nearly $3.7M as well as his majestic penthouse in Miami, Florida, for US$6.9M, or some $9.34M Canadian. Our Bureau of Investigation also revealed that his ex-wife, who is claiming more than $2.3M, had just seized two lots from him in Lac-Beauport worth $1.25M.