CHESTERVILLE – BDO Canada Limited has been appointed the receiver and manager of North Dundas-based Garden Villa Retirement Residence.
BDO was appointed by a court order issued in the Ontario Superior Court of Justice in Ottawa on October 26, 2023 following a court filing by Meridian Credit Union Limited.
In a statement of the receiver, BDO said that Garden Villa in Chesterville had at the time net assets of $10,637,976, but owed secured creditors a total of $12,220,069. The bulk of the secured debt is $12,203,056 owed to Meridian Credit Union Limited. Receivership occurs when a primary secured creditor enforces its security rights against a debtor when there is a loan or financing.
BDO also listed 18 unsecured creditors being owed a total of $676,522.55. Among those creditors, the Township of North Dundas ($14,339), Hydro One Networks ($5,504), Sussex Retirement Living ($170,000) and Mask Management ($241,000).
The privately-owned retirement residence remains open while the receivership period continues.
Kyle Simourd, co-founder and CEO of Better Group – which manages Garden Villa, told The Leader that facility continues to operate as normal.
“The Receiver has financial oversight of the business and is working to restructure the financial affairs of the business,” he explained. “A key objective of the restructuring has been and continues to be to ensure that residents and staff do not experience any negative changes, including in care and the quality of living at Garden Villa.”
Day-to-day operations continue to be managed by current staff.
Simourd said the debt to Meridian Credit dates to when Garden Villa was bought by the private group of investors, and from the most recent expansion.
“Given the current interest rate environment, upon a recent mortgage renewal, required payments increased significantly,” he said.
Simourd reiterated that this is a court-appointed receivership, not a bankruptcy. The goal is to reorganize and continue operations.
While the receivership continues, the company is renovating its empty rooms and the facility is undergoing a comprehensive roof replacement project – both approved by the receiver and the primary creditor.
Simourd continued that the unsecured debt listed in court was a listing of day-to-day payables combined with long-term liabilities owed to the ownership group, as required by the court at the time the receivership order was approved.
“All trade payables have been, and continue to be, current. This includes payments to the municipality,” he said adding. “All day-to-day and all trade payables have been kept current, to ensure no service disruptions to residents. It is not anticipated there will be any problems in this regard.”
Simourd said that Better Group, which manages the facility, has no ownership interest in any managed assets and supervises the day-to-day management of the facility.
A corporate records search of Garden Villa’s provincial incorporation documents show Aurele Simourd from Ottawa, Ken Craig from Kanata, and Stephen Suske from Oakville as directors of the company. Aurele Simourd is listed as company president, secretary, and treasurer.