Réal Bouclin doesn’t just need money to keep pieces of Groupe Sélection. The businessman is also personally hounded by a partner who claims $ 18 million and threatens to seize his luxurious residence in Laval.
The creditor at the end of his patience, Financement Projets Québec inc. (FPQ), is owned by a Luxembourg company controlled by two French-born businessmen, Luc and Franck Resslen. The company began lending to the fallen private seniors’ residence (RPA) magnate as early as 2019, through one of its many companies, Financement Réal Bouclin inc.
FPQ granted him four loans totaling 54.5 million, at interest rates of 7% to 10.5%, by taking guarantees on the businessman’s residence, in the wealthy district of Laval-sur -Lake.
According to the land documents consulted by La Presse, the company granted him a new loan of 6 million in December. Bouclin was then trying to delay the liquidation of Sélection, under the protection of the Companies’ Creditors Arrangement Act (CCAA), and to find partners to keep control of certain pieces of his real estate empire.
To guarantee these debts, the businessman granted FPQ personal guarantees by offering his Laval home as collateral. Valued at nearly $5.5 million by the City, it is owned by the Réal Bouclin Trust.
Contrary to custom, the lenders initially failed to register these guarantees in the land register, for four years. Then, last May, the Resslen company finally registered a mortgage right, before publishing a notice of sale under judicial control less than a month later.
The $18 million debt that is the subject of this action against the Bouclin residence could be just the tip of the iceberg.
In documents filed in Superior Court, the Selection Controller, PwC, identifies FPQ as a “partner”, without however mentioning in which residence the company holds shares.
Neither Luc nor Franck Resslen responded to questions from La Presse, sent by email and social media. Royal Bank, which is advising Bouclin in the CCAA proceedings, also did not call back. In a statement, Selection Group wanted to downplay the situation.
“Under the circumstances, it was expected that some disappointed creditors would attempt procedures of this type, underlines the company. Mr. Bouclin will not comment on the matter at this time. That said, this situation in no way affects the significant efforts currently being made by the organization to join forces with new financial partners. »
Sheltered from its creditors since November 14, Sélection is in a decisive stage of the auction process aimed at selling assets in order to restore its finances and reimburse its bankers.
The last transaction closed on May 12. The Fonds de solidarité FTQ then got its hands on the 25% stake held by the real estate developer and RPA manager in Espace Montmorency, in Laval. This multi-use complex includes businesses, residential towers and underground parking. Montoni and Montez are the other partners in this project.
We should soon have an idea of the identity of the buyers. According to the deadlines that appear in the documents filed with the Superior Court of Quebec, the PwC controller should determine, this Friday, which offers will be accepted.
According to court documents, the goal is to complete the transactions by July 31. The Monitor sent out nearly 540 invitations to Canada, the United States and around the world to attract potential buyers.
Bouclin and his bankers never agreed on how to turn Selection around. Repeatedly over the past few months, the businessman’s lawyers have claimed that the current process is in fact a disguised liquidation of the company. They argued in favor of a two-stage auction.
According to them, such a solution would have given more time to the businessman and his advisers to find partners in the hope of buying assets.
The Superior Court ruled in favor of the creditors’ plan, pointing out that Sélection’s financial precariousness means that transactions must be concluded quickly.
(Before filing for CCAA protection)
