Vancouver developer seeking bailout over $700M debt
Posted February 9, 2023 3:09 pm.
Last Updated February 13, 2023 3:23 pm.
A Vancouver property developer is going to the courts for a bailout, saying it can’t pay over $700 million in debt, putting 16 housing projects in jeopardy.
Coromandel Properties Ltd. has filed a petition to BC Supreme Court this week asking for relief under the Companies’ Creditors Arrangement Act, indicating the need for relief is “urgent.”
The petition, if successful, would give the company time to deal with financial problems due to stagnated progress on the 16 developments. The company cites difficulty paying its debts due to rising interest rates.
Many of the properties in question are on Cambie Street in Vancouver, with lots that are slated to be high-rise residential units. There are also parcels on Alberta Street, Ash Street, Georgia Street, and Manson Street.
In a request for comment from CityNews, Coromandel gave a statement confirming its petition.
“If the court grants their request for protection, Coromandel will work towards restructuring its finances and advance its operations,” the statement said.
