A receiver for the sale of assets of the Guzzo Group

Businessman Vincenzo Guzzo will undoubtedly have no choice but to accept that a receiver begins a solicitation process with a view to selling part or all of his company’s assets, currently in serious difficulty.

According to the latest draft order, presented to Judge Michel A. Pinsonnault, at the very end of the day yesterday, the Superior Court intends to appoint Raymond Chabot, as receiver, and entrust him in this capacity, until further notice, with the possession of the majority of the assets (cinemas, buildings, land) of the Guzzo Group.

Worried and having lost all confidence in its management, CIBC and several private lenders (Capital Q-8, Capital Q-12 and Equitable Bank) went to court last Friday for a formal, “orderly and structured” process. », solicitation of investors to be launched for the sale of the company’s assets.

They would be faced with shortfalls totaling more than $60 million, to which would be added tens of millions more in outstanding debts to other creditors. The sale of assets would aim to repay the bulk of the guaranteed debts and, if possible subsequently, to restructure the company to ensure its sustainability.

Yesterday, the Guzzo Group’s lawyer, Eric Lalanne, tried to convince the judge that granting the receiver the power to initiate such proceedings risked harming his client’s reputation, while risking depreciating the value of the assets. assets that Raymond Chabot might want to sell to overcome his debts.

“Don’t you think the damage is already done? Judge Pinsonnault replied. Look at the newspapers. Your client is in an extremely precarious situation. And I think it’s becoming more and more well known. So, it is not the process that will result in us seeking to see the interest of third parties for assets that will make the situation worse.”

Despite this takeover, the Court grants the Guzzo Group the right to continue operating all of its cinemas. The judge said he expected that the income generated from the operation of his establishments, in the middle of the holiday season, would allow him to pay all of his current operating costs, including rents, salaries of employees, film expenses and GST and QST payments.

On November 22, Raymond Chabot was given access to the finances of the Guzzo Group, without however being granted the right to manage and liquidate the company. Three weeks later, the receiver in the case, Dominic Deslandes (from Raymond Chabot), presented the results of his investigation on Monday.

Although he was questioned about it, the receiver’s report remained sealed. The same applies to a second report, prepared by the company MNP, at the request of the defendant. The latter suggested, unlike that of the receiver, that a restructuring process could very well be led by the current management of the Guzzo Group.