On November 30, 2018, Forme Development Group Inc. and certain of its affiliates (collectively, the “Applicants”), including 2358825 Ontario Ltd. (the “Birchmount Developer”) applied for and were granted protection from their creditors under the Companies’ Creditors Arrangement Act (“CCAA”), by the Ontario Superior Court of Justice (Commercial List) (the “Court”). The proceedings under the CCAA are referred to herein as the “CCAA Proceedings”.
While the Applicants are insolvent and unable to meet their ongoing payment obligations, they have not entered bankruptcy proceedings. Rather, they have sought and obtained statutory protection under the CCAA which is available to insolvent companies to give them “breathing room” to restructure in order to avoid bankruptcy. These CCAA Proceedings, however, are what is called a “liquidating CCAA”, in which the breathing room provided by the CCAA is expected to provide a more efficient liquidation and distribution to creditors of the Applicants’ assets than a bankruptcy.
The CCAA proceedings involve not only the Forme Development Group Inc., but also many of its affiliates, all of which are owned by a sole shareholder, Yuan (Mike) Hua Wang (“Wang”). KSV Kofman Inc. is the court-appointed monitor in the CCAA proceedings (the “Monitor”)
Koskie Minsky LLP has been appointed by the Court as representative counsel (“Representative Counsel”) to represent your interests as one of the individuals who purchased a residence from the Birchmount Developer (each a “Birchmount Purchaser” and collectively “Birchmount Purchasers”) in respect of all claims to be made by the Birchmount Purchasers in the claims process.