More than 120 people waiting on roughly $15 million tied up in deposits they paid on a failed seniors complex development will have to wait longer for their refunds after the group behind the project was granted creditor protection.
Charitable organization Trinity Ravine Community Inc. was granted protection from its creditors three weeks ago, citing detrimental effects of the COVID-19 pandemic and "skyrocketing" construction costs. The move comes seven years after it announced the Trinity Ravine Towers development — a two-tower, 605-unit "55-plus Christian lifestyle community" in Scarborough, just east of Toronto.
Trinity Ravine is now going through a court-supervised sale of its assets and development land, which is expected to be complete by the end of August. It says once the land is sold, it intends to pay back those waiting for a refund.
But that means people who purchased life leases with the project will be kept waiting at least another five months for their refunds, despite the organization already missing its promised date for returning the deposits.
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CCAA documents show Trinity Ravine owes money to nearly 300 creditors and 280 people still have life leases.
More than 439 people purchased a life lease with Trinity Ravine, and the corporation received more than $27 million dollars in deposits, the documents show. So far, Trinity Ravine has given 188 people back their deposits, amounting to more than $12 million in refunds.
As of September 2021, Trinity Ravine had assets of more than $25 million, but liabilities of more than $29 million.
Trinity Ravine didn't address life-lease purchasers' concerns or answer specific questions when contacted by CBC News, instead responding with its own question and answer document.
It says prior to obtaining creditor protection, the organization made every effort to refund life lease deposits.
"Trinity Ravine is disappointed that the project could not be completed as originally conceived," the document reads. "Upon completion of the sale process, Trinity Ravine intends to implement a court-supervised claims process and thereafter, the sale proceeds may be distributed to its creditors, including life-lease purchasers."
