There will be no rescue and no sale. The SIREG group is shutting down and expects its cash to be gone by the last week of October 2026. That is the message of a court document filed on October 7 by 18 SIREG companies together with AlixPartners, the trustee the court appointed in their insolvency (read the filing, PDF).
What the companies told the court
- Formal insolvency. All 18, SIREG Management Inc. among them, have filed a Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act: the opening step in a process where a company tries to strike a deal with the people it owes.
- Leaderless condos. Directors of the 43 condo corporations SIREG managed stepped down around September 17, and the management licence was suspended September 29. By the companies' own account, these corporations have neither a board nor a licensed manager.
- Quick hearing. They asked to be heard on October 14, 15 or 16.
- Their requests. Court-ordered owner meetings to elect boards, tenancies returned to unit owners, and permission to spend available money, rent receipts included, on the wind-down.
What owners need to protect
- Their voice in court. Decisions about these buildings will be made at that hearing, so owners need representation there.
- Condo money. Fees and reserve funds are each corporation's property, not SIREG's. They must be traced, kept apart and kept out of the wind-down budget.
- Rent and deposits. When tenancies come back, rent collected on owners' units and tenants' last-month deposits must be accounted for.
- A clean election. Proper notice, a correct owner list, an independent chair, and clear rules on who votes the units still owned by SIREG companies.
- Insurance, records and keys. Coverage must not lapse, and records, banking details and keys must be handed over.
- Suppliers. SIREG Management lists roughly $5 million owed to utilities, contractors and other suppliers. Owners are not personally liable, but each building must learn which bills are its own so services keep running and nothing is paid twice.
Who is who
- AlixPartners (the trustee) handles the SIREG companies' insolvency. It does not represent owners or the condo corporations, so owners need their own lawyers.
- LDDC (Levitt Di Lella Duggan & Chaplick LLP) works with a group of owners on getting a court-appointed administrator. With this filing, its focus was expected to move to speaking for owners at the hearing, securing fair election terms and, if needed, seeking a short-term administrator until boards are in place.
- Firm Capital lends to SIREG-related companies. Its mortgages appear to cover properties and units those companies still own, not investors' own units. It wants court permission to enforce and, according to the filing, claims about $600,000 of October rent. That could leave it controlling and voting SIREG-owned units in some buildings, and it is chasing the same limited cash as everyone else.
One thing to do now
Do not sign anything from SIREG or the trustee without reading it carefully first, especially a release, which is a document that gives up your right to make a claim.
