3 landlords among largest real estate holders in Ontario owe $144M, under bankruptcy protection: documents

• By Mike Heddle
• Posted Monday, Feb 05, 2024 1:31 pm

3 landlords among largest real estate holders in Ontario owe $144M, under bankruptcy protection: documents

A small group of landlords who own hundreds of rental properties across the province have run out of money, owe over $144 million in unpaid loans and face dozens of lawsuits from creditors, according to documents filed with the Ontario Superior Court of Justice.

Dylan Suitor, Ryan Molony and Aruba Butt are behind 11 now-insolvent corporations that face a "liquidity crisis" with only $100,000 in the bank, the documents say.

The three received court-ordered protection, under the Companies' Creditors Arrangement Act (CCAA), from over 300 lenders until the end of March 2024, wrote Justice Jessica Kimmel in her decision this week. 

Also known as bankruptcy protection, it means any legal action taken by lenders to recoup their money has been paused so the landlords can attempt to save their business. Documents say 32 lawsuits are currently filed against the corporations in courthouses across Ontario. 

The landlords and their corporations are based in the Hamilton area, but specialize in buying, renovating and in some cases relisting "distressed residential real estate in undervalued markets," said a court factum. 

Those markets are in Timmins, Sault Ste. Marie and Sudbury, as well as smaller communities, including Kirkland Lake, Temiskaming Shores and Val Caron. 

The landlords currently own 406 properties where 1,000 tenants live, making them "one of the largest holders of residential real estate in Ontario," Kimmel wrote. 

They did not respond to a request for comment sent through their lawyers.

Over 200 rental units sitting empty: documents

Suitor is a Hamilton investor who made headlines last year for shutting off tenants' water for nearly three months at 1083 Main St. E. after a pipe burst. At the same time, he was trying to evict them through the Landlord and Tenant Board to renovate their units, which is an ongoing process, lawyers representing the tenants have said. 

The corporation that owns the building — which sits across from Hamilton's picturesque Gage Park — is not among those in financial trouble that require...[READ MORE]