Update on the Status of the Winding Up Proceedings - Last Updated June 18, 2018
On October 12, 2017, the Respondents, Ali Akman, SAMM Capital Holdings Inc (the “Appellants”),. filed a Notice of Appeal to the Divisional Court appealing the Winding Up Order. On October 27, 2017, the Appellants sought and obtained an order expediting the appeal such that it would be heard on December 22, 2017. However, as a result of a potential settlement between the Applicants and the Respondents, the appeal did not proceed on December 22, 2017. The settlement did not proceed. On January 16, 2018, the parties will attend the Divisional Court to seek to reschedule the expedited hearing of the appeal.
On January 16, 2018, the Appellants sought and obtained an order expediting the appeal of the Winding Up Order. The appeal was heard on January 30, 2018 by the Divisional Court, and on February 6, 2018 the Divisional Court dismissed the appeal.
On November 29, 2017, the Court granted a Sale Process Order (the “Sale Process Order”) authorizing the Liquidator to, among other things, retain Colliers Macaulay Nicolls Inc. (“Colliers”) as its marketing and listing agent and conduct a sale process (the “Sale Process”) as set out in Schedule “A” to the Sale Process Order. The Liquidator and Colliers commenced the Sale Process on January 3, 2018. As set out in the call for offers dated February 8, 2018, pursuant to paragraph 4 of the Sale Process, Colliers and the Liquidator have extended the key milestone dates for the Sale Process. The revised timetable for the Sale Process is as follows:
(a) Phase I bids are to be submitted by no later than February 28, 2018;
(b) Phase II bids are to be submitted by no later than March 22, 2018; and
(c) A sale hearing is anticipated to take place at the Superior Court of Justice (Commercial List) on or about April 23, 2018
To participate in Phase I of the Sale Process, each Interested Party must provide Colliers with the following: (i) an executed Confidentiality Agreement; and (ii) an executed Acknowledgement of Sale Process, prior to receiving with the Confidential Information Memorandum or any other confidential information. Interested Parties are strongly encouraged to review the Sale Process Order and the Sale Process attached thereto as Schedule “A”.
Update: March 28, 2018
As indicated above, the Phase II bid deadline of the Sale Process was on March 22, 2018. In accordance with the Sale Process, Colliers and the Liquidator are in the process of reviewing the bids that were received and clarifying the bids to determine the next step in the process. The Liquidator will provide a further update to the website on April 18, 2018. We appreciate stakeholders' patience as the Sale Process continues.
Update: April 17, 2018
The Liquidator and Colliers have completed their review of the Phase II bids that were received, including seeking clarification from parties in respect of their bids, and have selected a Successful Bid and Back-up Bid pursuant to the Sale Process. The Liquidator intends to seek Court approval of the Successful Bid on May 1, 2018.
On April 13, 2018, the Liquidator obtained a Claims Procedure Order calling for Claims against Tarn Financial Corporation by June 15, 2018. Details of the Claims Process and the forms for the Claims Process are available below under the heading ‘Tarn Financial Corporation - Claims Process’.
On April 13, 2018, the Liquidator also obtained a Deposit Confirmation Procedure Order authorizing the commencement of a process to confirm the amount of Deposits held on behalf of Purchasers of condominium units of the development project known as ‘The Kennedy’s’. If a Purchaser disputes the information contained on the Deposit Statement it receives from KPMG, they are required to do so by May 15, 2018. Details of the Deposit Confirmation Procedure and the forms for the Deposit Confirmation Procedure are available below under the heading ‘Tarn Construction Corporation - Deposit Confirmation Procedure’.
Update: May 1, 2018
The Liquidator’s and Receiver’s motion was heard by the Court on May 1, 2018. The judge reserved his decision on the matter and will likely render his decision within five to ten days. KPMG will update the website once a decision is rendered.
On May 9, 2018, the Court granted the three Orders being sought by the Liquidator and Receiver at the May 1, 2018 motion and issued reasons for granting the Orders. The three Orders and Endorsement of Justice McEwen dated May 9, 2018 are posted in the Court Orders section below. The Orders granted on May 9, 2018, among other things, (a) approve the Successful Bid for the sale of the assets of Tarn Financial; (b) establish a process to resolve any disputes relating to deposits held by the Deposit Trustee, Bennett Jones LLP; and (c) confirm that the Receiver is entitled to terminate the Agreements of Purchase and Sale (“APSs”) relating to the proposed condominium units in The Kennedys on behalf of Tarn Construction without damages, subject to further Order of the Court being granted to address the return of Deposits to the Purchasers prior to doing so. The Court also confirmed that Purchasers are unable to pursue any other claims or costs upon termination of their APSs other than a return of their Deposits.
Update: June 18, 2018
On June 14, 2018, the Court granted a Deposit Return Procedure Order to address the termination of Purchasers’ APSs and set out the procedure to be followed for the return of Proven Deposits to Purchasers of proposed condominium units in The Kennedys. In order to facilitate the return of Proven Deposits, the Receiver will be setting up a Proven Deposits return desk in the former condominium sales office located at the Delta Toronto East Hotel at 2035 Kennedy Road between the hours of 8:30 a.m. and 8:30 p.m. on Wednesday July 11, 2018 and on Saturday July 14, 2018. If Purchasers cannot attend in person on one of the dates above, there is a procedure in place to allow Purchasers’ Proven Deposits to be mailed to them upon the Receiver receiving certain information. Please see the section “Tarn Construction Corporation - Deposit Return Procedure” below for the Deposit Return Procedure Order, Frequently Asked Questions and the forms that are required to be completed and delivered to the Receiver in order for Purchasers to receive their Proven Deposits.
