Toronto-based developer Urbancorp has filed for bankruptcy restructuring amid crippling debts. The firm said that it hoped a solution could be found to enable it to complete 1,000 homes that it is currently building in the city, which are due to be completed within the next two years.
Homes warranty company Tarion recently announced it was considering revoking coverage for 17 Urbancorp projects on concerns over its finances and customer service; these issues have been challenged by the developer.
The Globe and Mail reports that Urbancorp has told its Israeli investors that there would be a $15 million loss for the first quarter of 2016.
In a statement regarding the bankruptcy restructuring, Urbancorp’s founder and CEO Alan Saskin said: “This will allow us to reduce debt in an efficient manner while continuing to focus on our core business.”
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