The Globe and Mail reports in its Wednesday edition that Jenny Coco and Rock-Anthony Coco, former Coco Paving owners, are suing GFL Environmental and a sister company for refusing to pay $40-million they allege is owed after they sold the paving business to GFL. The Globe's Tim Kiladze writes that the $40-million in question is sitting in a legal liability fund. Under the deal terms, GFL was supposed to release the money in April but did not. GFL told the Cocos it would not pay because Ms. Coco pledged Coco Paving as collateral to secure a loan for a condo project with Sam Mizrahi. GFL also told the Cocos that it would not release the $40-million because of "an inquiry by a government agency into alleged actions of Coco Paving." In April, 2022, GFL joined with HPS Investment to buy Coco Paving for an undisclosed sum -- but rather than own it directly, GFL created a new entity called Green Infrastructure Partners (GIP) to house it. GIP is controlled by multiple partners and when it was created HPS owned 47 per cent, while GFL owned 45 per cent. GFL chief executive officer Patrick Dovigi owned the remaining 8-per-cent interest, and was also named executive chair of GIP's board. The Cocos are now suing GFL and GIP.
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