Réal Bouclin’s financial secrets are infuriating

Exasperated by the apparent secrets erected around the finances of dozens of entities linked to Réal Bouclin, the Superior Court judge yesterday served a serious warning to defense attorneys, on the second day of hearings in this bankruptcy case.

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“Why is it so complicated to see the financial statements? […] Are you going to tell me that Mr. Réal Bouclin instructed you not to show them? At some point, I will have to see something,” replied judge Michel A. Pinsonnault, to trustee Pierre Marchand, of MNP, responsible for the case of the founder of the now dismantled Groupe Sélection.

Struggling with personal debts of more than $212 million, the businessman placed himself under the protection of the Bankruptcy and Insolvency Act in August 2023. In the spring, a composition proposal was accepted by a majority of creditors, allowing him to avoid personal bankruptcy.

However, this was without taking into account the determination of Financement Projets Québec (FPQ), a creditor determined to recover the maximum of the approximately $55 million lent to Mr. Bouclin before the noose tightens on his empire of residences for the elderly (RPA ).

However, for two days, FPQ’s lawyers like the judge encountered great difficulties in obtaining proof or demonstration of the reasoning put forward by the trustee. FPQ particularly questions its decision to favor the path of a proposal to shareholders (reimbursement of $10.65 million out of $212 million in debts) rather than that of searching for hidden assets among the fifty numbered companies. , of all orders, related to the Bouclin clan.

To the trustee’s lawyer, Judge Pinsonnault issued this warning: “M^e Hébert, you want to submit a request to approve a proposal […] But the court does not operate much on professions of faith. In any case, I would like to point out to you right away that you are navigating in troubled waters at the moment,” immediately inviting him to let go of the confidentiality of the finances of each of these entities.

“All we have is the word of Mr. Marchand [le syndic] who says: I looked at this and there is nothing. I want to, but there has to be a way […] to explain that the avenue of bankruptcy was far from being the best avenue?

“We are not even able to do a single check,” he added. At some point I will have to make a decision. And I can’t do it just with ideas and a profession of faith.”

Given the complexity of the case, a third day of hearing was added to the agenda. The court agreed to resume work in this case on November 13.

THE THREAD OF EVENTS SO FAR’ICI

November 2022:

Groupe Sélection places itself under the protection of the Companies Creditors Arrangement Act (LACC).

August 2023:

Réal Bouclin files a notice of intention to make a proposal to creditors, under the Bankruptcy and Insolvency Act (BIA). MNP is designated as trustee in the notice of intention.

January 2024:

Réal Bouclin presents a settlement proposal to MNP. Numerous discussions and meetings with creditors followed. The first meeting is held on February 13, 2024.

May 2024:

On May 28, the creditors voted on the proposal submitted by Réal Bouclin. Financement Projets Québec (FPQ) highlights serious reasons for objection regarding the right to vote of certain people. The vote is held despite everything: 18 votes are recorded; 15 for and 3 against.