Urbancorp: the refund cheque the monitor has no record of receiving

According to the Canada Revenue Agency's records, on November 14, 2022 the government issued a refund of approximately $1.192 million to Vestaco Homes Inc., one of the Urbancorp companies that owned geothermal assets at four condominium developments. It was a refund of refundable dividend tax on hand, calculated on a 2021 return that had reported a $6 million dividend where the correct figure was $2 million. The monitor has no record of receiving it. CRA sent the monitor an "Undertaking and Indemnity for Cheques Issued by the Receiver General" form on December 17, 2025; the monitor returned it on January 16, 2026, and CRA then said the cheque had cleared the Receiver General's account on January 18, 2023. The monitor has asked for a copy of the cancelled cheque "so that the Monitor can determine what party deposited the Refund Cheque," and has been told that Public Services and Procurement Canada handles enquiries about payments issued by the Government of Canada, per the Sixty-Fourth Report of the Monitor, Aug. 19, 2026, s. 2.2, paras. 3(d), 7.

On August 26, 2026, at a video hearing on the Commercial List, Justice Cavanagh extended the stay of proceedings for the Urbancorp CCAA Entities to February 26, 2027, and added a paragraph addressed to two federal bodies that had no one on the counsel slip. "I have been advised by counsel that there have been significant delays in finishing the work needed for this CCAA proceeding to be completed. In light of the ongoing delay, it is requested that the CRA and Public Services and Procurement Canada (and, if relevant, any other agency of the federal government) provide timely responses to the Urbancorp related matters before them," per the Endorsement of Justice Cavanagh, Aug. 26, 2026, p. 1; paras. 3–5.

A bond issue in Tel Aviv, and ten years of distributions

The Urbancorp Group began in 1991 and developed, built and sold residential property in the Greater Toronto Area. A related company, Urbancorp Inc., was incorporated on June 19, 2015 to raise capital in public markets in Israel, and under a deed of trust dated December 7, 2015 it sold NIS 180,583,000 of debentures, approximately C$64 million at the exchange rate of the day, which traded on the Tel Aviv Stock Exchange. Most of the proceeds were lent to six Canadian companies so they could repay the loans they owed at the time, on terms that left the advances unsecured and payable only from surplus cash flow after all other creditors were paid in full. Urbancorp Inc. was alleged to have defaulted on the bonds, and the exchange suspended trading in them, per the First Report of the Monitor, June 9, 2016, s. 2.0, paras. 1–2; s. 2.1, paras. 1–3.

Those six companies filed notices of intention to make a proposal on April 21, 2016. Four days later the District Court in Tel Aviv-Yafo appointed Guy Gissin as functionary and foreign representative of Urbancorp Inc., and on May 18, 2016 the Ontario court granted the six, with their affiliates, protection under the CCAA, appointed KSV Kofman Inc. as monitor, and recognized the Israeli proceeding as a foreign main proceeding, per the Sixty-Fourth Report of the Monitor, Aug. 19, 2026, s. 1.1, paras. 1–4. The initial order was Justice Newbould's, per the Factum of the Urbancorp CCAA Entities, Aug. 19, 2026, para. 1.

The geothermal assets, located at four condominium developments, were sold in the proceedings for approximately $25 million. In its Sixtieth Report, of June 21, 2024, the monitor said it had distributed $74 million to Urbancorp Inc. since the proceedings began; it paid a further dividend of approximately $553,000 on May 28, 2025 from money received in the bankruptcy of Urbancorp Management Inc., and an additional $1 million to the foreign representative on March 10, 2026, per the Sixty-Fourth Report of the Monitor, Aug. 19, 2026, s. 1.1, paras. 5, 8. The receivership of Urbancorp Renewable Power Inc., which managed those assets, generated more than $30 million in recoveries, and the receiver put its own and its counsel's fees for the whole receivership, which began on June 28, 2018, at $1,591,834.30 before HST, per the Sixty-Third Report of the Monitor, Feb. 18, 2026, ss. 1.3, 7.0.

In February the monitor sold the last of the parking and storage units it held in one condominium building. King Residential Inc. still held title to 10 parking units and about 125 locker and bike storage units in the building of Toronto Standard Condominium Corporation No. 2302, costing about $2,600 a month to carry; the monitor had tried to sell them since the start of the proceedings, but only owners in the building could buy. It sold them to the condominium corporation for $1,000 a parking unit and $500 a locker or bike unit, payable only as and when the corporation resells each one, per the Sixty-Third Report of the Monitor, Feb. 18, 2026, s. 2.3, paras. 1–4. Chief Justice Morawetz approved the sale on February 25, 2026 as "the only realistic avenue for recoveries" for Urbancorp Inc. on those units, per the Endorsement re AVO, Feb. 25, 2026, para. 4, and the monitor delivered its closing certificate at 8:00 a.m. on March 17, 2026, per the Monitor's Certificate, Mar. 17, 2026, p. 2. In extending the stay that same February day, the Chief Justice wrote that "the only substantive issue that remains outstanding is the finalization of taxation matters with Canada Revenue Agency. The timing to resolve the outstanding issues is uncertain and beyond the control of the Applicants and the Monitor," per the Endorsement re Stay Extension, Feb. 25, 2026, para. 5.

The monitor itself has since changed its name. On June 1, 2026, KSV was acquired by AlixPartners and KSV Restructuring Inc. became AlixPartners Restructuring, Inc.; Justice Steele's substitution order of June 3, 2026 moved its Ontario court appointments to the new name, per the Sixty-Fourth Report of the Monitor, Aug. 19, 2026, s. 1.1, para. 7; App. "C".

What the monitor holds, and why it cannot pay it out

On August 4, 2026 the Cumberland CCAA Entities, as the reports call the group, held approximately $1.654 million in cash. To that the Sixty-Fourth Report adds $766,000 for the replacement Vestaco Homes refund, $379,000 for a future claim to the rest of its dividend tax, and $194,000 expected from the bankruptcy of Urbancorp Management Inc., for a potential $2,993,000 available to Urbancorp Inc. before fees and costs, per the Sixty-Fourth Report of the Monitor, Aug. 19, 2026, s. 2.1; s. 2.2, para. 10. In February the cash was approximately $2.891 million and the same table totalled $4,230,000, per the Sixty-Third Report of the Monitor, Feb. 18, 2026, s. 2.1; s. 2.2, para. 10.