From Boom to Bust: How Insolvent Landlords Lost Nearly 50 Sault Properties

For the past few months, I have been a correspondent of the courts by way of Sault Ste. Marie concerning the fallout from SID Developments insolvent landlords. It was on December 6, 2024, when His Honor Peter J. Osborne of the Ontario Superior Court approved the sales of these 323 properties to secured lenders by means of credit bid. This decision from the court has far-reaching effects on our community since 47 of these properties are situated right here within Sault.

The credit bid process opens up bidding opportunities to first and second mortgage holders to bid the face value of their secured debt on the liquidation properties. Most of these properties are sourced by Big North Capital Inc., a company set up by a group of secured lenders to manage these assets.

In his endorsement, Justice Osborne said: “The court recognizes that these transactions have adverse consequences for a number of stakeholders, and we do not endorse what has occurred that resulted in this situation; but it is the best path forward, even under difficult circumstances, to approve transactions which maximize the possible outcomes.”

These landlords-Dylan Suitor, Ryan Molony, the former YTV child actor Robby Clark, and his wife Aruba Butt-combined over 600 rental units in Ontario, 200 of them in Sault Ste. Marie, 69 of which are currently empty. Their properties are financed through 500 mortgages and about 800 promissory loan notes.

In January, the group sought protection from creditors citing debts of $144 million and available cash of less than $100,000. Borrowing had been mismanaged, advancing extravagant purchases, including private jets and luxurious hotels, with neglect of essential expenses, such as municipal taxes and utility bills.

Until February 28, 2025, creditor protection had been granted to the owners. The date allows time to complete the sale of the properties and the development of a liquidation plan for the remaining assets.

As the situation develops, we will see how the new owners will change the local rental market as well as the residents in these properties, whom the community will be watching closely as their lives continue to be affected by this change in Sault Ste. Marie.