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a substantial portion of the Urbancorp Group's indebtedness. As such, many of his creditors

will be participants under the various proposals or plans which may be presented by the

Urbancorp Group. Accordingly, the actual indebtedness which Mr. Saskin may be dealing

with in his personal proposal will vary with the recoveries under such proposals or plans.

CASH FLOWS

12. On May 9, 2016, the Proposal Trustee filed the cash flow projection and related reports

required by s.50.4(2) of the BIA (the "Cash Flow Projection") and a copy is attached as

Appendix "A". The Cash Flow Projection covers the period April 30, 2016 to July 30,

2016.

13. Currently, Mr. Saskin has no monthly income and all of his personal expenses are paid by

either his spouse or by family trusts in which Mr. Saskin is not the beneficiary.

14. In light of Mr. Saskin's personal financial circumstances and the manner in which his

personal expenses are paid, the Cash Flow Projection has no forecast receipts or

disbursements.

EXTENSION OF TIME FOR FILING A PROPOSAL

15. In light of the ongoing restructurings under the BIA and CCAA of many entities of the

Urbancorp Group, Mr. Saskin's proposal will be in part dependent on the various outcomes

of the BIA and CCAA proceedings. As such, Mr. Saskin is seeking a 45 day extension of the

time permitted to file a Proposal under the BIA to allow him to better understand the possible

outcomes from these various proceedings and to provide time to formulate a proposal for

presentation to his creditors taking into account these outcomes.

16. The Proposal Trustee supports Mr. Saskin's request for an extension and based on its

involvement in this matter to date is of the opinion that:

a. Mr. Saskin has acted and is acting in good faith and with due diligence;

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b. the extension will allow additional time to understand the various outcomes of the

BIA and CCAA proceedings and litigation and Mr. Saskin would likely be able to

make a viable proposal if the extension being applied for is granted; and

c. no creditor will be materially prejudiced if the extension being applied for is granted.

RECOMMENDATION

17. Based on the foregoing, the Proposal Trustee recommends that this Court make an Order

granting a 45 day extension of the time permitted for Mr. Saskin to file a Proposal.

All of which is respectfully submitted on this 241h day of May, 2016.

THE FULLER LANDAU GROUP INC. in its capacity as licensed insolvency trustee under the Notice of Intention to make a proposal of Mr. Alan Saskin d no nits g rsonal capacity

Appendix “A”

ONTARIO SUPERIOR COURT OF JUSTICE

(COMMERCIAL LIST)

Court File No. 31-2117602 Estate File No. 31-2117602

(IN BANKRUPTCY AND INSOLVENCY)

IN THE MATTER OF THE NOTICE OF INTENTION TO MAKE A PROPOSAL OF ALANSASKIN

FIRST REPORT TO THE COURT OF THE FULLER LANDAU GROUP INC. IN ITS CAPACITY AS TRUSTEE UNDER

THE NOTICE OF INTENTION TO MAKE A PROPOSAL OF ALAN SASKIN

MAY 24,2016

INTRODUCTION

1. On April 29, 2016, Mr. Alan Saskin ("Mr. Saskin") filed with the Official Receiver a Notice

of Intention to Make a Proposal ("NOI''), pursuant to subsection 50.4(1) of the Bankruptcy

and Insolvency Act, R.S.C. 1985, c. B-3, as amended (the "BIA''). On the same date the

Office of the Superintendent of Bankruptcy confirmed the filing. The Fuller Landau Group

Inc. was named as proposal trustee ("FL" or the "Proposal Trustee") under the NOI.

2. Mr. Saskin has attempted over a number of months to reach informal settlements with certain

creditors but without overall success. As well, as a result of various restructuring

proceedings of entities owned directly or indirectly by Mr. Saskin, litigation including

proceedings in Israel, and Construction Lien Act (Ontario) breach of trust claims, Mr.

Sasksin required a stay of proceedings in order to bring stability to his personal creditor

situation. The principal purpose of these proceedings is to create a stabalized environment to

allow Mr. Saskin to formulate and implement a workable proposal to his creditors in light of

the ongoing corporate restructurings.

3. A copy of the notice of the NOI (the "Notice") and related documents was mailed to all

known creditors by the Trustee on May 6, 2016.

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4. On May 9, 2016, the Cash-Flow Statements, the Insolvent Person's Reports on Cash-Flow

Statements, and the Trustee's Report on Cash-Flow Statements for Mr. Sasksin was filed

with the Official Receiver.

PURPOSES OF THIS REPORT

5. The purposes of this first report (the "First Report") are to:

a. provide the Court with background information regarding Mr. Saskin' s circumstances

and the filing of the NOI;

b. update the Court with respect to the Mr. Saskin's receipts and disbursements;

c. provide the Court with the Proposal Trustee's recommendation that the Court make

an Order approving Mr. Saskin' s request to extend the time for filing a proposal to

July 11, 2016;

6. In preparing this Report, the Proposal Trustee has relied on discussions with Mr. Saskin and

his lawyers and accountants and the review of certain documents provided by these parties.

Some of the information used in preparing this Report consists of financial projections. The

Proposal Trustee cautions that these projections are based upon assumptions about future

events and conditions that are not ascertainable. Mr. Saskin's actual cash flows may vary

from the Cash Flow Projection, even if the hypothetical and probable assumptions contained

therein materialize, and the variations could be significant.

BACKGROUND

7. Mr. Saskin is the president and shareholder of Urbancorp Holdco Inc., which in turn owns

100% of Urbancorp Inc., a real estate development company that owns numerous corporate

entities, including general partnerships, limited partnerships and corporations (collectively,

the "Urbancorp Group"). Mr. Saskin founded the Urbancorp Group's real estate

development business in 1991. The Urbancorp Group generally uses single purpose project

specific corporations to engage in the development, construction and sale of residential

properties in the greater Toronto area.

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8. As noted in Mr. Saskin's affidavit dated May 20, 2016, in April 2016, certain of the

companies controlled by and owned indirectly by Mr. Saskin filed NOis naming KSV

Kofman Inc. as proposal Trustee. Most of those proceedings were converted to proceedings

under the Companies' Creditors Arrangement Act ("CCAA"), and several additional

companies in the Urbancorp Group were added as applicants under the CCAA. In addition,

Urbancorp Inc. is subject to court proceedings in Israel, which commenced on or about April

24, 2016 pursuant to an Order of the Israeli Court which subsequently has been recognized by

the Ontario Superior Court of Justice ("Commercial List").

9. Certain other companies within the Urbancorp Group, namely Bosvest Inc. ("Bosvest"), Edge

Residential Inc. ("Edge Residential") and Edge on Triangle Park Inc. ("Edge Triangle")

have filed NOis naming FL as Proposal Trustee and these filings are addressed in a separate

report of FL. As well, on May 20, 2016, Urbancorp Cumberland 2 GP Inc. and Urbancorp

Cumberland 2 L.P. filed NOis naming FL as proposal trustee, as it came to light after filing

the NOis for Bosvest, Edge Residential and Edge Triangle that pursuant to declarations of

trust, the beneficial interests in the properties held by Edge Residential and Edge Triangle are

ultimately held by Urbancorp Cumberland 2 L.P. Notwithstanding the declarations of trust,

FL has been advised by Urbancorp Group's management that the assets of Edge Triangle and

Edge Residential remain available to satisfy their indebtedness to their respective creditors.

10. In addition to owning 100 common shares of Urbancorp Holdco Inc., we are advised Mr.

Saskin also owns 100% of the common shares of the Urbancorp Toronto Management Inc.

("UTMI"), and all or substantially all of a limited partnership TTC!Urbancorp (Bay) LP, as

well as the common shares of 2390645 Ontario Inc., Urbancorp (Eastern) Inc., Urbancorp

(Logan) Inc. Urbancorp (National) Inc., Urbancorp (Yonge) Developments Inc., and

Urbancorp (Downtown) Developments Inc. The Proposal Trustee is in the process of

compiling of detailed listing of all of Mr. Saskin's shareholdings and the information herein

may be subject to revision.

11. Mr. Saskin is facing a number of claims and lawsuits including a class action lawsuit, breach

of trust claims under the Construction Lien Act (Ontario) and direct claims to creditors for

money borrowed by way of promissory notes. As well, Mr. Saskin has personally guaranteed

Appendix “B”