Court boosts monitor’s powers to investigate insolvent rental firm

A Superior Court judge has authorized an investigation into the use of $144-million in borrowed money by the companies and individuals at the centre of a sprawling and now insolvent real estate investment enterprise that owns 405 rental properties in Northern Ontario.

Justice Jessica Kimmel of the Ontario Superior Court of Justice extended the stay of proceedings last week against the enterprise, referred to collectively in court documents as Balboa et al, until March 28 as it seeks court protection while it reorganizes. There are currently more than 30 civil claims filed against the various companies. The court has also enhanced the oversight powers of appointed monitor KSV Consulting Inc. to include investigations and consent on the spending of interim financing obtained for the ongoing operations of the rental properties spread across cities and towns such as Sudbury, Sault Ste. Marie and Timmins.