Quebec actual property developer Stéphan Huot defaults on greater than $1 billion – Le Journal de Montréal

Quebec actual property developer Stéphan Huot capitulates. He’s personally defending himself from his collectors for money owed totaling a whopping practically $1.2 billion.

• Additionally learn: Different buildings linked to the Huot Group are protected against their collectors

• Additionally learn: Mach Group intends to buy Huot Group’s rental complexes

• Additionally learn: “He has nothing left”: It’s the top of Stéphan Huot’s actual property empire

Stéphan Huot, whose enterprise empire has utterly collapsed, filed a discover of intent to file a proposal below the Chapter and Insolvency Code on Thursday, in response to paperwork seen by our Bureau of Investigation.

The extent of the developer’s money owed, which quantity to 1.179 billion, makes this chapter case one of many largest in greenback phrases in all the historical past of Quebec (see under).

The record of collectors filed within the submitting exhibits Huot owed $253 million to Toronto-based Timbercreek Mortgage Servicing, $164.5 million to Manulife Financial institution of Canada, $127.7 million to Portage Capital and $120 million -$ to SH Actual Property Fund is owed to Q-12 Capital, $92.3 million to Laurentian Financial institution and $80.3 million to monetary establishment CMLS.

enterprise folks

Effectively-known businessmen from the Quebec area are additionally making monetary claims towards him.

That is significantly true for Michel Cadrin, to whom Huot is almost $40 million in debt throughout two corporations.

Huot owes $19 million to investor Daniel Fortier, who served as his endorser, and greater than $2 million to Gaston Paradis and a administration firm on his behalf.

For his half, a lawyer from the regulation agency De Grandpré Chait, Me Eric Lasry, information a declare for $2.25 million.

In the course of a debacle

Stéphan Huot and his firm with virtually 700 staff have needed to settle for setbacks for the reason that starting of the yr.

Specifically, the businessman has misplaced a number of actual property complexes with a complete of 1000’s of flats in latest months.

Huot Group subsidiaries, together with Millenum Development and Airmedic, additionally filed for chapter final June and July, respectively.

Final April, our Bureau of Investigation reported that 90 millionaires, together with 75 from the capital area and 15 from the Montreal area, are racing to get again the colossal sums they’d loaned to the Huot group.

In line with our data, these traders have been promised unimaginable returns of as much as 12%.

Stéphan Huot was contacted by our investigations workplace on Friday and didn’t wish to touch upon the file.

Extra notorious chapter instances

At practically $1.2 billion, Stéphan Huot’s money owed characterize one of many largest chapter instances in Quebec historical past. Listed here are different instances of entrepreneurs and enterprise leaders whose sums at stake captured the creativeness after they filed for chapter .

Actual Bouclin

Every week in the past, the president of Groupe Sélection, Réal Bouclin, positioned himself below the safety of the Chapter and Insolvency Code. He claims he owes his collectors greater than $160 million. In November 2022, his firm had made comparable strikes with $904 million in debt.

Ronen and Baruch Basal

Ronen Basal, who was on the helm of round 10 giant rental condominium buildings within the larger Montreal space, admitted to our investigative company final January that he was on the point of collapse. As a part of a proposal to his collectors, he lastly declared money owed of $164.7 million in early August. His father Baruch has a adverse stability of $140 million.

Tony Accurso

The decline of developer Tony Accurso, the reluctant star of the Charbonneau Fee, has been nicely documented for a decade. Final yr, he reported $107 million in private money owed when he filed for chapter. Contemplating that in his heyday he ran a 4,500-employee empire whose annual gross sales have been practically a billion {dollars}…

Yanai Elbaz

Former McGill College Well being Middle (MUHC) deputy director Yanai Elbaz owed a staggering $1.1 billion when he filed for chapter in 2020. However that’s largely as a result of his former employer demanded $1 billion from him in court docket due to the corruption fraud Elbaz was responsible of some years earlier.

Raymond Malenfant

Hotelier Raymond Malenfant, who died in January 2022 on the age of 91, suffered a spectacular chapter of virtually 145 million in 1993. He beforehand managed an actual property portfolio of 400 million, which notably included the Manoir Richelieu and the Jacques-Cartier advanced, in Quebec.

– In collaboration with Philippe Langlois

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