Restructuring Due To CCAA
On 28 April 2017, Walton International Group Inc. ("WIGI") Canada and certain of its Canadian affiliates had obtained an Initial Order from the Court of Queen's Bench of Alberta (the "Court") for creditor protection of 33 Walton-related entities in Alberta under the Companies' Credits Arrangement Act (or "CCAA"). On March 28, 2018 a sanction order was granted by the Court, approving a Joint Plan of Compromise and Arrangement allowing for the main operating entity WIGI and twelve other entities to emerge from CCAA.
Currently, 16 of the 33 filing entities have emerged from CCAA, three others have applications before the Court to seek their emergence and the remaining entities are anticipated to have plans in place to allow them to emerge from CCAA by the end of June 2018. In perspective, only 33 out of the 600+ entities under the Walton Group of Companies were directly impacted by the Canadian restructuring.
Outside of the CCAA proceedings, Walton initiated a second restructuring process with the goal of effectively amalgamating the Canadian entities which hold/held pre-development land investment located in Canada and the United States, into a single Canadian corporation, referred to as RUC ("Roll-Up Corporation"). Under this structure, it provides important benefits to shareholders including diversification of land assets, increased operational and administrative efficiencies, greater flexibility and a broader ability to monetise the assets of RUC by way of sale and partnership with the best in class local, regional and national builders and developers.
Walton Global Operations
Walton's global business in Canada, the United States and Asia continued to operate and run as profitable enterprises. The CCAA entities have no direct relation to pre-development land projects owned by investors in Asia. Walton will continue to focus on achieving planning and entitlement wins, and on monetising its developments, vacant developed lots, and pre-development land assets with the real estate market recovery being experienced in the U.S. and Canada for its investors.
In 2017, Walton realised exits of C$42.6 million in pre-development land sales which were distributed to investors and an additional C$28.9 million pre-development land sales contracts have already been executed and are estimated to close this year. In addition, Walton-managed development entities had lot sales totalling over C$180 million and vacant developed lot entities had sales of C$20.3 million in 2017 and to date in 2018.
Walton has also received Letter of Intents (LOIs) in excess of C$400 million, which it expects to capitalise on throughout the balance of 2018. In addition, Walton continues to manage its development entities in Alberta, the D.C. MSA, Texas and Colorado where it has seen significant wins in terms of development approvals and sales and interest in the commercial, retail, residential and industrial lots available for sale.
Future of Walton
Going forward, Walton's business operations in Canada and across the globe will be leaner and continue to be focused on administrative and operational efficiencies implemented during the restructuring. Walton will focus on asset management for the 107,469 acres of land under administration, while managing debt levels. Where strategically beneficial, Walton will continue to acquire specific assets in growth corridors in existing and ascending markets in North America which support monetisation strategies generating positive returns for investors.
Walton will also seek to partner with best in class local, regional and national builders to monetise and profit on its land assets in the United States and Canada by way of sale and/or development.
About Walton International Group
The Walton Group of Companies is a multinational group of real estate investment and development companies headquartered in Calgary, Alberta, Canada. As one of North America's leading land-based real estate investment and development firms, its expertise is in the research, acquisition, management and development of strategically located land in major growth corridors throughout Canada and the U.S. Walton currently manages over 107,000 acres, laying the foundation for communities where people can live, work and play, and creating wealth for our clients around the globe. For more information, please visit www.waltoninternational.com