A small group of landlords who own hundreds of rental properties across the province have run out of money, owe over $144 million in unpaid loans and face dozens of lawsuits from creditors, according to documents filed with the Ontario Superior Court of Justice.
Dylan Suitor, Ryan Molony and Aruba Butt are behind 11 now-insolvent corporations that face a “liquidity crisis” with only $100,000 in the bank, the documents say.
The landlords and their corporations are based in the Hamilton area, but specialize in buying, renovating and in some cases relisting “distressed residential real estate in undervalued markets,” said a court factum.
Those markets are in Timmins, Sault Ste. Marie and Sudbury, as well as smaller communities, including Kirkland Lake, Temiskaming Shores and Val Caron.
Yep, it’s the playbook private equity uses too. Buy a healthy profitable company and then leverage it to the tits to pay themselves back. The company is saddled with debt and an obligation to service that debt and creates a situation where the only way the company can survive is if they grow rapidly. Sometimes it works out and private equity hits big, other times it doesn’t and the company goes under. But who cares, fuck those workers and their livelihoods right?