CB 11 South Woodbridge Corp., the owner of 1.91 acres of development land in Woodbridge, Ontario, was placed in receivership on September 18, on application by Canada ICI Capital Corporation ("ICI"), owed approximately $7.6 million. The proposed development was a 4-storey multi-family residential condominium building with approximately 90 units and 108 parking spaces. When the ICI mortgage was entered into, a second mortgage in favour of Fred Hui was subordinated to the ICI mortgage. Contrary to the terms of the subordination agreement, Hui made demand for payment under the second mortgage, issued a notice of sale and entered into a listing agreement for the property. In addition, a number of construction liens and cautions have been registered against the property. EY was appointed receiver. Counsel is Blaney McMurtry for ICI and Dickinson Wright, Tyr and Murray Maltz Professional Corporation for the company. By Dina Milivojevic
Genesis Integration Inc. ("Genesis"), an Edmonton, Alberta-based company in the business of designing and integrating audiovisual collaboration systems for both public sector and corporate clients, and its sole shareholder, 965591 Alberta Ltd. ("965"), a holding company, were each placed in receivership on September 14, on application by Cortland Credit Lending Corporation ("Cortland"), owed approximately $9.5 million, plus legal fees, interest and costs. The Cortland debt is guaranteed by Genesis and its wholly-owned subsidiary, Fusion Cine Sales & Rental Inc. ("Fusion”). On the same day that the Receivership Order was granted, a Reverse Vesting Order was granted approving a going concern sale to Sequent AI Exchangeco Limited, a related party, of all of the issued and outstanding shares of Genesis, including Genesis’s ownership interest in Fusion, without any effect on Fusion’s creditor obligations, including in respect of the Cortland debt and amounts it owes to certain critical suppliers. KSV was appointed receiver. Counsel is Dentons for Cortland, McMillan for the receiver and Blakes for the purchaser. By Dina Milivojevic
City & Stay Hotel Group Ltd., which operates a boutique hotel on Brunswick Avenue in Toronto, Ontario, was placed in receivership on September 2, on application by Andrew Peek and Constantine Trevor Speis, owed over $540,000. In 2018, the company entered into a credit facility with TD Bank, which was guaranteed by Peek and Speis. The company defaulted on the loan and, in August 2022, Peek and Speis paid TD Bank over $540,000 in satisfaction of the guarantees. They also received an assignment of TD Bank's security interest. The company is operating at a loss, and does not have the cash flow to maintain its business and pay its obligations. It has made various attempts to secure additional debt or equity funding to solve its ongoing liquidity problems, all of which were unsuccessful. Rosen Goldberg was appointed receiver. Counsel is Miller Thomson for the company and Advocan Law for Peek and Speis.
2580363 Ontario Inc., which operated as a restaurant known as “Aout ‘n About” from premises located in Hamilton, Ontario, and 2580361 Ontario Inc., which owned the premises, were placed in receivership on September 1, on application by TD Bank, owed approximately $1.4 million. The companies have defaulted on the terms of the credit facilities provided by TD Bank, including by failing to make payments when due; allowing arrears of property tax to become due to the City of Hamilton; and allowing charges to be registered on title to the premises, subsequent to the TD Bank mortgage, in favour of Olympia Trust Company, Comfort Capital Inc. and Alex Magis. msi Spergel was appointed receiver. Counsel is Fogler, Rubinoff for the receiver and Harrison Pensa for TD Bank.
Tankhouse Development Inc., which owns real estate and operates a brewery known as Signal Brewing Company in a heritage building in the Corbyville, Ontario distillery district, was placed into receivership on August 25, on application by the Business Development Bank of Canada, owed approximately, $1.6 million. The company's operations were significantly impacted by the restrictions imposed on restaurants during the COVID-19 pandemic and the recent passing of its majority shareholder. The company has been unable to service its secured debt for a significant period of time and BDC has lost confidence that the operations, under new management, could change the past operating results. MNP was appointed as receiver. Counsel is Soloway Wright for BDC. By Dina Milivojevic
Solvaqua Inc., a Calgary, Alberta-based company which provided proprietary wastewater management solutions based on nanopolymerization technology that allows isolated areas to reuse water, was placed in receivership on August 19, on application by Arnaki Ltd., owed approximately USD$6 million. Solvaqua’s business plan was to implement the technology in foreign jurisdictions. Its contracts with overseas buyers were insured by Export Development Canada (“EDC”). The amount owing represents the debt outstanding following EDC's payout of $1,386,000 on an insurance claim filed by the company after a buyer failed to complete the purchase of certain of the company's equipment, with the insurance proceeds having been assigned to Arnaki. MNP was appointed receiver. Counsel is Chitiz Pathak for Arnaki By Dina Milivojevic
1761112 Alberta Ltd., whose business consists of leasing commercial and residential units in Edmonton, Alberta, was placed in receivership on August 19, on application by RBC, owed approximately $660,000, plus interest pursuant to a commercial mortgage. The company defaulted on the payment of principal and interest, and RBC demanded payment in full of the indebtedness in January. RBC agreed to forbear until May 18, but no payment was made. EY Parthenon was appointed receiver. Counsel is Dentons for RBC and Witten for the receiver. By Dina Milivojevic
Cedar Road Bioenergy Inc., a Nanaimo, British Columbia-based clean energy company, was placed in receivership on August 4, on application by Vancouver City Savings Credit Union. In 2005, the company entered into a development agreement with the Regional District of Nanaimo pursuant to which the company was permitted to construct and operate a facility to harvest methane gas, convert it to electricity which was ultimately sold to third parties including BC Hydro. The company's business was interrupted by labour shortages and material and equipment servicing delays in early 2020 due to the Covid-19 outbreak. Parts and servicing required for each of the company's two generators are not currently available due to supply chain delays. The company defaulted on its loan to Vancouver City Savings Credit Union and was unable to repay the loan following the expiry of the demand letters. D. Manning & Associates was appointed receiver. Counsel is Owen Bird Law Corporation for Vancouver City Savings Credit Union. By Dina Milivojevic
Applewood Marketplace Inc., the owner and developer of a real estate development project known as the Applewood Project, located in London Ontario, was placed in receivership on August 3, on application by MarshallZehr Group Inc., owed approximately $58 million pursuant to four credit facilities. Part of the property was being developed as apartment buildings with commercial space on the ground floor, which were expected to be completed by year-end but for the company's financial difficulties. This phase of the Project is approximately 75% complete, and the company ceased its construction operations at the site on June 1. In contravention of the credit facilities, 46 construction liens have been registered on the property in the aggregate amount of over $8 million. To date, the company has not taken any steps to vacate the liens. In addition, the company failed to pay monthly interest on three of the four credit facilities and to repay three of the four credit facilities on their maturity dates. EY was appointed receiver. Counsel is Miller Thomson for MarshallZehr and Siskinds for the company. By Dina Milivojevic
2735447 Ontario Inc. (known as Rosehill) and certain other entities were placed in receivership on July 8, on application by Rose-Isli Corp. and others. The parties were were developing a residential condominium project in Woodbridge, Ontario known as "The Rosehill Project" as a joint venture, before the relationship between them broke down. The applicants and the respondents agreed that the Rosehill Project should be sold, and that the sale process should be undertaken by a court-appointed officer. EY was appointed receiver. Counsel is Reconstruct for the receiver; Tyr for the applicants; Dickinson Wright for the respondents and Bennett Jones for Trez Capital Limited Partnership. By Dina Milivojevic