In troubled waters, the president of Groupe Guzzo tried by all means yesterday to defend his balance sheet and the ability of his company to overcome the significant debts weighing against it.
“Unfortunately, with all this negative publicity, it has created more tightening of our conditions,” Vincenzo (Vincent) Guzzo said in court on Tuesday. Every time it appears in the newspapers, our suppliers lower our payment terms, going from 28 to 21 days, then from 21 to 14 days.”
It is for this reason, among others, he continued, that the companies he manages – around twenty entities in the cinema, construction and catering industries – are experiencing liquidity problems. . “There, I have distributors who, just for one or two films, want [être payés] within 7 days. They are so scared,” he illustrated.
Sequestration
In a motion filed last week, the Canadian Imperial Bank of Commerce (CIBC) is asking the Superior Court of Quebec to appoint an interim receiver and take control of all the assets of the twenty or so corporate entities of the Band.
In support of his request, the director of special accounts at CIBC cited multiple payment delays or defaults, strained relations with management, a lack of transparency with regard to CIBC and the inability of the institution to thus obtain a fair idea of the financial situation of its client.
“Each time, the debtors [entités de Groupe Guzzo] make commitments that they are unable to respect, or ignore correspondence sent by CIBC.” In addition, despite a shortfall that the bank estimates at some $39 million, Guzzo allegedly failed to present his financial reports for the last two years.
To Judge Michel A. Pinsonnault, CIBC said it ultimately feared for the survival of the company, the recovery of the sums owed to it and the harm that, like it, many other “creditors and stakeholders” risk incurring. ”, including employees.
The Guzzo Group has about 120 full-time and 400 part-time employees, Vincenzo Guzzo estimated in response to a question from prosecutors. The company was founded by his father, Angelo Guzzo, in 1975. Having become president around ten years ago, the son says he now holds 24.5% of the shares in the family business.
Waiting for the “big guns”
Well known to the public, notably for his participation in the television series Dragon’s Denat CBC, Mr. Guzzo sought numerous times, during the two hours that his testimony lasted, to deny, to relativize or to diminish the importance of the facts put forward by the team of lawyers from McCarthy Tétrault, representatives from CIBC.
Despite signs of annoyance, faced with questions from lawyers, the entrepreneur was confident about the future. He further explained that he was encouraged by the possibility of the upcoming sale of land, along the A13 highway in Laval, and the imminent release of new films in theaters.
“Next Friday, the big guns of the cinema world begin […]which could allow us to bring in liquidity and get through the holidays and the year 2025,” said the entrepreneur, who hopes to see the court grant him a new reprieve and reject the idea of sequestration.
The hearing will resume Wednesday morning for the pleadings stage. The judge is expected to rule quickly thereafter on the merits of the motion.
– With Nicolas Brasseur and Ian Gemme, Investigation Office
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