The Globe and Mail reports in its Thursday edition that an Ontario judge has denied Jenny Coco and Rock-Anthony Coco's demand for $40-million from the companies that bought their family business, forcing the siblings to wait for another lawsuit to be resolved. The Globe's Tim Kiladze writes that GFL and Green Infrastructure Partners signed a deal to buy the Coco family's Coco Paving in December, 2021. Two months before the transaction was set to close, GFL learned that Ms. Coco had pledged the paving company as collateral to secure a large construction loan for her condo project, The One, with developer Sam Mizrahi. Worried about the legal liability, GFL and GIP negotiated to hold back $80-million of the Coco Paving purchase price but agreed to release it in two stages: $40-million, plus accumulated interest, after the purchase's first anniversary; and the remaining $40-million, plus accumulated interest, after the second anniversary -- provided the potential liability had been resolved.
However, when the takeover closed in April, 2022, one of The One's lead lenders alleged that its loan was in default and sued. Because of the pending suit, GFL and GIP held back the first $40-million from the liability fund.
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