Travelers Receivership of Urbancorp Developments Inc.

Travelers issued a bond to “backstop” the developer’s obligation to Tarion and also provide excess deposit insurance to purchasers of units. Urbancorp was placed into receivership on application of the Canadian Imperial Bank of Commerce in May 2016, with Alvarez & Marsal Canada Inc. appointed as receiver and as construction lien trustee. On behalf of Travelers, we negotiated a settlement which put in place a complex arrangement allowing for the completion of the construction of the project, the ability of former purchasers to “opt in” to the purchase of their units at an increased price and for the distribution of the proceeds of sale in accordance with an agreed to waterfall. Construction of the project was successfully completed in the Fall of 2018 with the closing of the sale of the units taking place in November 2018.