At least 75 millionaires from Quebec and about fifteen from Montreal have been seduced by the wondrous returns of the Huot Group’s real estate empire and are now rowing to save their money and save the furniture.
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• Also read: Legal mortgages against the Huot group multiply
“He has [embarqué] all the millionaires of Quebec,” illustrates an entrepreneur who himself invested heavily in this mishap.
Groupe Huot, a major player in Quebec’s real estate sector, has been forced to shut down its construction sites and lay off workers in recent weeks after major financial problems.
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Our investigative agency has in recent days spoken to businessmen in the Capitale-Nationale region who have loaned colossal sums to Stéphan Huot’s company.
Archive photo
Entrepreneur Stéphan Huot proudly poses next to a pilot’s suit that one of his companies, STEPHAN/H. The founder of Amazon, Jeff Bezos, as well as NASA primarily acquired these clothes.
Some hung up, others referred us to their lawyers, but some agreed to speak about this saga for the first time on condition of anonymity.
According to them, at least 75 Quebec millionaires have invested no less than $221 million at an attractive interest rate of up to 12% to fund Huot Group’s projects.
“There are people who have mortgaged their house or chalet to invest in it,” reveals a source.
“There are people who have poured their fortunes into it,” adds another.
The money from these millionaires was initially entrusted to two companies owned, among others, by another Quebec businessman, Robert Giroux.
“They loaned to Giroux, and Giroux loaned to the Huot group,” explains a person familiar with the matter.
Robert Giroux declined to comment on the situation, his lawyer told us.
$900 million in mortgages
According to public documents consulted by our investigation office, the total amount of active loans for Huot Group buildings is now more than 900 million US dollars, of which 365 million US dollars come from banking institutions and a few dozen from investors were provided from Montreal.
However, due to inflation and the meteoric rise in interest rates, the Huot Group was unable to meet its obligations.
“[Huot] lost control of his affairs. He’s too scattered, he has too many companies […] There are people who have been irresponsible in this regard. We include ourselves in that: we trusted,” continued an investor.
“Let’s just say it’s nice shit,” summarizes another.
Meetings every day
Fifteen investors are now wrestling with lawyers, bankers and accountants to try to resolve this impasse.
This group is working on a “rescue plan”, which should ultimately have the takeover of the housing stock by investors and the revitalization of construction sites as a goal. The aim is to avoid bankruptcy according to our sources,
“There are meetings every day. There is a desire to save the housing stock, give up apartments, pay suppliers,” explains an informant.
No comment
Contacted by our investigation office, Stéphan Huot said on the phone that he was surprised that we were able to reach him.
“I don’t have much to tell you, I think you know the current situation. […] It’s really boring, that thing. If we have any news, you will be contacted,” he said before hanging up.
Its spokeswoman, Florence Brouillard, then stated that she would not answer any of our questions on the subject.
“It is a case of infinite complexity. Especially because there are a lot of people and companies involved right now, working 24/7 to find solutions for everyone,” she said.
AN EMPIRE IN QUEBEC CITY
- Groupe Huot was founded in 1990 by Quebec businessman Stéphan Huot.
- It includes more than a hundred companies in about twenty different sectors of activity, including construction, telemedicine, catering, aviation, helicopter rental and flight training.
- It is behind 22 real estate parks – mainly rental apartments – on the territory of the Capitale-Nationale alone.
- Stéphan Huot is the owner of Airmedic, which has been conducting emergency medical evacuations with its own aircraft and helicopters for ten years.
- The Huot Group also owns the virtual health application Olive, which provides 24/7 access to health professionals.
- Stephan Huot wowed Amazon founder Jeff Bezos and NASA with the extravagant pilot’s clothing that his company STEPHAN/H created.
295 statutory mortgages
According to the latest data from Terram Technologies, no fewer than 295 legal mortgages have been registered by 78 creditors on Huot Group or its subsidiaries for a total of $72.1 million.
Not only investors fear for their money.
Measures have also been taken by suppliers and subcontractors who have not been paid for the work carried out or the materials supplied to the Huot Group.
Our investigative agency was able to speak to Martin Tremblay of Déménagement Signature, a Quebec SME.
The latter indicated that he is currently dealing with several unpaid bills from companies in the Huot Group that are taking a heavy toll on him financially.
“Up until a few weeks ago, we were relocating show apartments. I got it for $30,000 [de factures impayées]”, he said.
At the end of March, his company filed a first complaint against Millénum Construction, and according to him, further proceedings are to be expected.
“For a small business like ours, $30,000 is a lot of money, especially now. We’re on the line of credit,” he explained.
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