What the CCAA cost, and where the money went
Of about $22.4M paid out of the Monitor's account, 54% went to professionals and DIP lenders and 6% went to the companies for renovations and operations. The Monitor's table does not reflect activity in the companies' own bank accounts and gives no rent figure: it reports $3.49M of other receipts that it says include rent collections and interest income.
The $12.1M is a floor, not the cost of the proceeding. It is $10.09M of professional fees and $1.99M of DIP lender interest and fees paid from the Monitor's trust account to July 2, 2026. The table is unaudited, does not reflect activity in the companies' own bank accounts, gives no rent figure beyond $3.49 million of other receipts that it says include rent, and does not itemize sale commissions, the replacement property manager's fees or the $4.9M shown as "Other". The DIP agreement contemplated about $4.1M of renovations. On the companies' sworn evidence $748,502.86 had been provided for renovations by June 20, 2024, after which the Monitor stated it would approve no further renovation costs. Even the Monitor's broader line for all advances to the companies, which it says were largely used for renovations, utilities, repairs and maintenance, is $1.4M: about one third of the renovation plan and under one eighth of the amount paid to professionals and DIP lenders. Ratios are this site's arithmetic.
Source: Fifteenth Report of the Monitor (Jul 21, 2026), s.9.0; Motion Record of the Applicants (Jun 20, 2024), including the affidavit of Robert Clark, Clark affidavit para 33 and note 2; Fifth Report of the Monitor (Jun 17, 2024), Appendix D, note 4
The Monitor raised its hourly rates twice during the proceeding. Its fee affidavits record that "Effective January 1, 2025, the hourly rates of Messrs. Sieradzki and Goldstein increased from $750 to $850", and that on January 1, 2026 the rates of two of its staff, including one of those two, "increased by $100".
Renovations against fees
The DIP loan was approved in part to renovate 98 properties with 206 vacant units, which the Monitor said was "expected to result in additional annual operating cash flow of approximately $5 million". Its first forecast had $3.0M going to renovations and $2.0M to professional fees by March 28, 2024.
Both lines ran under forecast. Renovations were at 5% of forecast ($144,000 of $2.76M). Professional fees were at 52% of forecast ($1.509M of $2.924M). The Monitor said the variances were "largely expected to be timing differences" and that it was reviewing scope of work information before approving renovations. Percentages are this site's arithmetic.
Source: Third Report of the Monitor (Apr 2024), s.6.0
By June 14, 2024 the DIP loan had paid about $3.5M in professional fees and $1.24M to the companies for renovations and every operating cost combined. On June 17, 2024 the Monitor said it did not intend to approve any further renovation costs. In August 2024 the DIP loan was increased from $12M to $15M, in part to bring professional fees current.
About $748,503 of DIP money reached the companies for renovations, in five advances from February 26, 2024. About 90 units were renovated with it.
Professional fees over time
About $3.5M had been paid by June 14, 2024, before the powers of the Monitor were expanded on June 25, 2024. About $6.6M was paid after. The pace of payments was highest in 2024.
Source: cash tables in the Fifth Report of the Monitor (Jun 17, 2024), s.6.0; Sixth Report of the Monitor (Jul 24, 2024), s.4.0; Eighth Report of the Monitor (Oct 23, 2024), s.4.0; Tenth Report of the Monitor (Nov 29, 2024); Eleventh Report of the Monitor (Feb 20, 2025), s.7; Fourteenth Report of the Monitor; Fifteenth Report of the Monitor (Jul 21, 2026), s.9.0
The $10,094,000 line covers every professional paid from the Monitor's account: the Monitor, its counsel, the companies' counsel, both DIP lenders' counsel, counsel for the secured and unsecured lender groups, and the sale advisors. It is unaudited, and the reports do not split it by firm.
Payments ran behind the work. To May 31, 2024, professional fees ran at $1.0 million to $1.1 million a month. The Monitor's table to June 14, 2024 shows $3.5 million of professional fees and says "These professional fees are paid through April 30, 2024". Its table to July 22, 2024 shows $4,846,000 and says the fees "are paid through May 31, 2024". Between the two reports $1,346,000 was paid and the paid-through date moved by one month. Counted from the filing on January 23, 2024, $4,846,000 through May 31, 2024 is about $1.1 million a month for all firms. Counted from January 2, 2024, when the Monitor's first invoice period begins, it is about $1 million a month. Differences and averages are this site's arithmetic.
What the $10.1M figure leaves out
| Cost | What the record shows | Source |
|---|---|---|
| DIP lender interest and fees | $1,985,000 reported separately. Harbour charged the greater of 12% or prime plus 4.80%, a $240,000 commitment fee plus $60,000 on the increase, and extension fees of $120,000 and then $150,000. | Fifteenth Report of the Monitor (Jul 21, 2026), s.9.0; First Report of the Monitor (Jan 29, 2024), s.5.3; Seventh Report of the Monitor (Aug 23, 2024), s.5.0 para 7 |
| Real estate commissions on 67 sales | Netted from sale proceeds at the standard listing rate. Gross prices and total commissions are not reported. | Eleventh Report of the Monitor (Feb 20, 2025), s.6 para 5; Fifteenth Report of the Monitor (Jul 21, 2026), s.4.0, s.5.0 |
| New property manager | 6% of rent collected, 3% to 6% on capital projects, $150 a month per vacant home, $500 per lease and one month's rent per realtor-placed lease. Paid inside "Other" disbursements of $4.876M; the total is not reported. | Sixth Report of the Monitor (Jul 24, 2024), Appendix C; Fifteenth Report of the Monitor (Jul 21, 2026), s.9.2 |
| Cost allocation | About $2.7M allocated in the distribution analysis, not itemized in the report body. | Fifteenth Report of the Monitor (Jul 21, 2026), s.5.0 para 4(b) |
| Fees paid outside the Monitor's account | The Monitor's tables exclude the companies' own accounts. Lender representative counsel was paid bi-weekly by the companies. | Eleventh Report of the Monitor (Feb 20, 2025) |
| Sale advisors | $30,000 a month to the sale process advisor; CBRE $100,000 plus 0.75% on a portfolio sale or 5% per property. Totals are not reported. | Third Report of the Monitor (Apr 2024), s.5.0 para 7(a) |
Monitor and its counsel
| Period | Monitor | Monitor's counsel | Source |
|---|---|---|---|
| Start to Mar 31, 2024 | $517,837 | $679,604 | Third Report of the Monitor (Apr 2024), s.9.0 |
| Apr to May 2024 | $458,877 | $1,117,239 | Sixth Report of the Monitor (Jul 24, 2024), s.7.0 |
| Jun to Jul 2024 | $320,392 | $825,834 | Seventh Report of the Monitor (Aug 23, 2024), s.7.0 |
| Aug to Oct 2024 | $416,453 | $205,345 | Tenth Report of the Monitor (Nov 29, 2024), fees section |
| Nov 2024 to Jan 2025 | $329,091 | $162,160 | Eleventh Report of the Monitor (Feb 20, 2025), s.11 |
| Feb to Mar 2025 | $133,039 | $106,056 | Twelfth Report of the Monitor (Apr 8, 2025), s.10.2 |
| Apr to Jun 2025 | $178,474 | $93,103 | Thirteenth Report of the Monitor (Jul 21, 2025), s.9 para 2 |
| Jul to Dec 2025 | $308,676 | $43,790 | Fourteenth Report of the Monitor, s.8 |
| Jan to Jun 2026 | $267,793 | $80,747 | Fifteenth Report of the Monitor (Jul 21, 2026), s.11.0 para 2 |
| Total shown | $2,930,632 | $3,313,878 | Fees before disbursements and HST; our arithmetic |
The Monitor and its counsel account for about $6.24M of the $10.09M, before disbursements and HST. No report itemizes the remainder by firm.
The first three months, by invoice
| Invoice month | Monitor | Monitor's counsel | Both |
|---|---|---|---|
| January 2024 | $163,292.63 | $133,172.76 | $296,465.39 |
| February 2024 | $223,674.77 | $289,364.22 | $513,038.99 |
| March 2024 | $199,966.63 | $350,767.12 | $550,733.75 |
| To March 31, 2024 | $586,934.03 | $773,304.10 | $1,360,238.13 |
Invoice totals including disbursements and HST. The Monitor's fee affidavit covers "the period January 2, 2024 to March 31, 2024": 904.85 hours at an average of $572.29 an hour. Its counsel's covers January 17 to March 31, 2024: 697.40 hours at an average of $974.48 an hour. The filing was on January 23, 2024. Sums across firms and months are this site's arithmetic. Third Report of the Monitor (Apr 2024), s.9.0 paras 1 and 2; Appendices G and H, fee affidavits and invoices
The Monitor's first invoice covers work done for the companies before it was appointed. The Third Report states: "The Monitor's invoice for the month of January includes time incurred prior to the CCAA Application assisting the Applicants to prepare for the filing, including time incurred to draft the Pre-Filing Report, assist in negotiations of the DIP Facility and prepare the initial cash flow forecast filed with the Court."
Who reviews the fees
In a CCAA proceeding the fees of the Monitor and its counsel are approved by the supervising court. The Superintendent of Bankruptcy keeps a public record of CCAA proceedings, must record complaints about monitors and may investigate a monitor's conduct. Sections 26 to 31 of the Act give the Superintendent no role in reviewing or approving fees.
In a United States Chapter 11 case, the U.S. Trustee, a component of the Department of Justice, reviews professionals' applications to be retained and paid, and may object to them.
The Monitor projects about $800,000 for creditors outside the mortgaged-property proceeds, against more than $50M of principal claims.
Source: Fifteenth Report of the Monitor (Jul 21, 2026), s.9.0, s.6.0 para 5, s.6.3 para 3(c)
Secured lenders also recovered 333 properties by credit bid. The reports do not state a total value for those properties, so this chart is not a measure of every lender's recovery.
- On December 6, 2024 the court approved the fees of the Monitor and its counsel to that date as "fair and reasonable and consistent with market rates", and said the work was "accretive to the outcome for stakeholders". Endorsement of Justice Osborne (Dec 6, 2024), paras 36 and 37
- The $10.09M includes the companies' own counsel and their own financial advisor, not only the Monitor's side.
- Professional fees also ran under the Monitor's forecast in the first ten weeks. Third Report of the Monitor (Apr 2024), s.6.0