A mysterious new player would raise his hand to buy the real estate assets of the Huot Group, which had been mired in bankruptcy for several months. This new potential buyer could compete with the MACH Group, which has already made a purchase offer in this matter.
• Also read: Huot Group debacle: Stéphan Huot went “against the wall” from 2022.
• Also read: Quebec real estate developer Stéphan Huot has defaulted on more than $1 billion
It was the Huot group’s lawyer, Me Pierre Rivard, who “pulled this rabbit out of the hat” during the hearing on Wednesday morning, in the words of Judge Jean-François Émond.
The meeting, which dealt with the resolution of a postponement request from the first potential buyer, the Mach Group, took an unexpected turn when Stéphan Huot’s lawyer took the floor.
While the first offer is still confidential, this new offeror, which was not identified by Me Rivard, would be willing to provide more than $600 million to acquire the real estate portfolio of the Huot Group subsidiaries.
ARCHIVE PHOTO, DIDIER DEBUS SCISSORS
“Mr. Huot managed to obtain an offer from a third party […] a total offering of $609 million,” the fallen billionaire’s lawyer filed.
“Mr. Huot never showed up”
Judge Jean-François Émond was surprised by the turn of events and expressed himself categorically. Without claiming that this offer will never be evaluated, he assured that it will not be evaluated on the same day in the courtroom.
The judge criticized Stéphan Huot in passing and regretted that he had “handed over the keys to his creditors and told them to take care of the problems”.
“I will not consider that offer this morning. “Mr Huot never appeared in court, he never reported himself, I don’t even know what he looks like,” said the judge, visibly unaware that Stéphan Huot was actually in the courtroom for the first time.
Judge Émond also regretted that this mysterious buyer did not come forward himself on Wednesday.
“The offer from Mach Group, its CEO [Président directeur général] appeared before me. He testified and explained to me what his business was. That’s the evidence.”
Huot Group’s lawyer has agreed to contact this potential new buyer with the insolvency administrator named in the file, who is already reviewing the offer submitted by Vincent Chiara’s company on August 31.
Postponement of Mach’s offer
The finalization of this first proposal, which according to the various parties involved is progressing, has also been postponed until Wednesday morning. The Mach Group requested a two-week postponement, while the secured creditors requested a one-week postponement. Two creditors wanted to reject Mach’s offer to initiate a public tender process, which was quickly ruled out given the deadlines.
Judge Émond ultimately decided to postpone the case until September 26th.
“Mr. Chiara is in the room, I want to make it clear that there will be no further delays.”
This postponement will allow Mach Group and Huot Group creditors to set the parameters of a possible purchase agreement for the real estate portfolio, which represents approximately $650 million in assets.
Wednesday’s hearing found that delays mean constant losses for creditors. The “brown interest rate,” or depreciation until a transaction is completed, is currently $2.5 million per month on the assets of the buildings in question.
“We must therefore avoid at all costs a debt enforcement procedure that could take several months,” emphasized Stéphan Huot’s lawyer, who wants to withdraw the maximum amount as quickly as possible in order to repay his numerous creditors.
In collaboration with Kathryne Lamontagne
Mach Group’s offer in brief
- Confidential amount
- However, Vincent Chiara ensured the quick repayment of $100 million to top creditors
- The insolvency administrator said on Wednesday that this proposal would repay secured creditors and legal mortgages
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