Urbancorp has announced the Urbancorp Group, its management company, Urbancorp Toronto Management Inc. and five of its subsidiaries, have started restructuring proceedings under the Bankruptcy and Insolvency Act (Canada).

“We determined, after much consideration and consultation, that a Court-supervised process is the best way to deal with current cash flow issues,” said Alan Saskin, Urbancorp CEO, in a press release.

The process is intended to provide the companies with a stabilized environment where they can manage their affairs. The companies will follow a restructuring plan which will involve seeking Court approval of a sale process for some of their assets. This will help support the maximization of real estate values for the benefit of creditors and other stakeholders.

“This will allow us to reduce debt in an efficient manner while continuing to focus on our core business,” said Saskin. “Urbancorp has delivered 1,028 homes in the past two years and currently has 1,058 additional homes under construction. The Court process is intended to ensure that, with our partners, we will be delivering these homes in the next two years.”

The filing companies will work with KSV Kofman Inc., the proposal trustee, to stabilize operations, preserve and protect asset value for stakeholders and move forward with the sale process.

For more information on the restructuring plan, visit the proposal trustee’s website at http://www.ksvadvisory.com/insolvency-cases-2/urbancorp/.