SID Developments in Sudbury: What the Record Shows

In January 2024, days after filing, the companies asked for authority to pay trades and suppliers what they were owed from before the filing. The Monitor's first report records: "The Applicants are seeking authorization to make payments to certain suppliers integral to the continued operation of the Business in respect of obligations arising prior to the commencement of these CCAA proceedings." It notes that there are "a limited number of tradesmen or suppliers in these regions", and that "The business of these suppliers may be significantly impaired if certain pre-filing obligations are not promptly paid."

The same report states that in a CCAA proceeding such payments "should be a limited exception to the general rule prohibiting payment of prefiling obligations", and that the Monitor's consent was required before any pre-filing obligation was paid. Under the order of February 15, 2024 every payment by the companies required "the prior written consent of the Monitor". After the order of June 25, 2024 the Monitor controlled the companies' bank accounts.

The companies' filed response states that none of management generally took any salary or other compensation from the companies.

The companies applied for protection under the Companies' Creditors Arrangement Act on January 23, 2024. A CCAA proceeding is a court-supervised restructuring, not a bankruptcy. The Initial Order made that day stayed proceedings against the companies.

On July 30, 2026 the court made a Claims Procedure Order setting out how creditors file claims. The Monitor projects "approximately $800,000 not included in the Mortgaged Property Proceeds available for distribution to creditors".

The Monitor's first report states that the companies' cash flow forecast showed a need for "funding of approximately $9 million, including approximately $6.4 million in one-time costs consisting of renovations and property tax arrears". The forecast to March 28, 2024 set out $3.0 million for renovations and $2.2 million for property tax arrears, and the report notes that "it is a condition of the DIP Facility that property tax arrears be paid current".

The Monitor's second report compares actual payments with that forecast for the eight weeks to March 22, 2024. Property tax arrears: $2,355,000 paid, against $2,200,000 forecast. Renovations: $53,000, against $2,625,000 forecast. Pre-filing arrears: $121,000, against $1,180,000 forecast.

Under the order of February 15, 2024 every payment by the companies required "the prior written consent of the Monitor". The companies' sworn evidence is that by June 20, 2024, $748,502.86 had been provided for renovations. Renovation funding in the proceeding.