2023-05-03 23:00:00
Investors have injected some $13 million into the Huot Group in recent weeks so that the Quebec real estate giant, which has been in financial difficulty since mid-February, avoids bankruptcy.
This is at least what the lawyer for a limited partnership linked to Robert Giroux, the Quebec businessman who had led some 75 millionaires to invest more than $221 million in the Group, argued before the court. Huot and its subsidiaries, before its debacle.
Speaking to Judge Jean-François Emond on Wednesday, Me William Noonan revealed that the Huot Group’s financial difficulties had become “obvious” on February 18.
“The Huot Group did not have enough money to pay salaries in the week of February 20, nor to pay people who wanted to be paid in that week,” he explained to judge Jean. – Francois Emond.
A group of Quebec businessmen – who had invested colossal sums in the Huot Group – then created what they nicknamed the “rescue fund”, in order to save their money, pay suppliers and avoid businesses of Stéphan Huot to go bankrupt.
“It’s down to earth what I’m going to tell you here, but since February 20, 2023, my clients have been paying everything at Huot. Including his lawyer, ”said Me Noonan.
Another group of investors headed by Douville Moffet et Associés – who would have lost some $35 million in the Huot Group, according to Mr. Noonan – also joined in this effort.
And since then, $13 million in new money has been advanced to enable the continuation of the Huot Group’s activities. These creditors intend to transform their loans into investments in the long term, we were able to learn.
Restructuring of Transrapide
Me William Noonan was in court to discuss the issue of the Transrapide distribution center, a subsidiary of the Huot Group.
On Monday, the real estate giant announced the signing of a memorandum of understanding to ensure the continuity of operations of Transrapide, which was placed under the protection of the Creditors Arrangement Act.
The lawyers of more than fifty creditors took part in the hearing, which was held at the Quebec courthouse. Transrapide has some $72.5 million in legal mortgages, according to an expert from the firm Deloitte, who studied the file.
Towards a recovery
Me Noonan said that a businessman from Beauce, Pierre Thabet, was also “mainly interested” in regaining control of Transrapide, whose construction sites were put on hold in February.
“He wants to start construction again and it’s in a hurry,” dropped Me Noonan, who assured Transrapide’s creditors that “everyone will be paid in full” once the claims process is established.
Huot is conspicuous by his absence
It should be noted that no representative of the Huot Group was on site during the procedure, which seemed to annoy the magistrate.
“It seems to me that there are absentees. I find it curious, ”said Judge Emond, before being reassured by lawyers who saw no dispute there, since it is the creditors who are currently working hard in this case.
“We solved some of his problems [à Huot] and we settled them between us. The creditors, we agreed among ourselves. It was logical that we were the creditors in court and not the Huot Group in court,” insisted Me Noonan.
The case is due back in court next week.
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