The principal asset owned by the Company was real property located in Halifax, Nova Scotia. The real property was divided into several condominium lots. The Company intended to develop the real property into townhomes. The Company was unable to secure the financing it required to complete the development and was also unable to repay its senior lender, First National Financial LP (“First National”).
The Company was placed in receivership on application by First National and KSV was appointed the Receiver by the Nova Scotia court. Prior to the receivership, KSV was presented with an offer to purchase the real property. To maximize value for creditors and to minimize the risk of losing the offer, KSV negotiated with the party for it to be a “stalking horse” in a court-supervised sale process. The stalking horse sale process was approved by the court and was the first stalking horse sale process approved in Nova Scotia. The stalking horse was ultimately the successful bidder in the process. The sale process resulted in full recovery for the senior creditor.