1143924 B.C. Ltd., Buffalo-Gentai (St. Johns) Investment Limited Partnership and Buffalo-Gentai Development Ltd., the owners of certain lands in Port Moody, British Columbia, had a receiver appointed on January 27, on application by Prospera Credit Union, which provided mortgage financing in connection with the purchase of the lands. The companies have committed various events of default under the Prospera loan agreement, including by seeking a windup and dissolution of Buffalo-Gentai (St. Johns) Investment Limited Partnership, one of the debtors. The Bowra Group was appointed receiver. Counsel is Owen Bird Law Corporation for Prospera. By Dina Milivojevic
Saptashva Solar S.A., a Spanish corporation that is extra provincially registered in the Province of Ontario with offices in Madrid, Spain and Concord, Ontario, was placed in receivership on January 24, on application by 1199403 Ontario Inc., 1274442 Ontario Inc., and Gulu Thadani (collectively, the "Lenders"). The company owns and operates nine solar projects comprised of physical structures along with corresponding revenue generating Feed-in-Tariff Contracts granted by the Ontario Power Authority (now known as the Independent Electricity System Operator). The Lenders advanced two loans to the company in 2014 and 2015. The purpose of these loans was for the construction, reconstruction, and repair of solar projects that were damaged by a windstorm in respect of which the company required an advance on an insurance claim in order to ensure that the solar projects were made operational. Although the exact amount owing to the Lenders under the loans is in dispute, there was evidence before the Court that at least $400,000 plus interest was advanced and is owing. Ira Smith Trustee & Receiver was appointed receiver. Counsel is Stephen M. Turk for the Lenders and Morrison Law for the company.
Sri Ayyappan Ltd., Thirukumar Pararajasingam and Bhaheswary Thirukumar, who own an operating gas station that includes a convenience store and a restaurant in Milton, Ontario, had a receiver appointed over their business assets on January 14, on application by RBC. RBC extended various loans to the debtors, all of which became due and payable towards the end of 2020. The parties then entered into a forbearance agreement which expired on April 29, 2021. The debtors argued that the receivership application was premature because they had entered into agreements of purchase and sale for the gas station and an adjacent residential property. Justice Conway concluded that there were numerous conditions to the transactions that made it highly unlikely that they could close any time soon and granted the receivership order. Spergel (GRIP) was appointed receiver. Counsel is Chaitons for RBC. By Dina Milivojevic
Areacor Inc., the owner of property municipally known as 15 Cannon Street West, Hamilton, Ontario, was placed in receivership on January 13, on application by MarshallZehr Group Inc. ("MarshallZehr"), owed approximately $6.9 million. The company acquired the property to develop it as a six-storey condominium project consisting of 40 residential units and commercial space on the ground floor. In 2018, MarshallZehr agreed to provide financing to the company to refinance its existing land loan and provide construction financing for the development. The construction of the development was initially estimated to be completed by November 2019. However, the development experienced significant delays and construction effectively ceased in June 2021. RSM was appointed receiver. Counsel is Chaitons for MarshallZehr and RAR Litigation Lawyers for the company. By Dina Milivojevic
Ideal (WC) Developments Inc., a single purpose company incorporated for a planned residential real estate development located at 6532 and 6544 Winston Churchill Boulevard, Mississauga, Ontario, was placed in receivership on January 11, on application by Empirical Capital Corp., owed over $6 million. The loan was to be fully repaid in March 2020, but the company and Empirical entered into subsequent forbearance agreements, the last of which expired on November 15, 2021. During the forbearance period, the company indicated that it had entered into an agreement of purchase and sale with respect to the properties. However, the company failed to complete the sale transaction on the scheduled closing date of November 15, 2021. RSM was appointed receiver. Counsel is Garfinkle Biderman for Empirical. By Dina Milivojevic
Coast to Coast Sunglasses Inc., a Montréal, Québec based retailer of optical products, was placed in receivership on January 10, on application by Caisse Desjardins de Rosemont-La-Petite-Patrie ("Caisse Desjardins"), owed over $7.5 million. The company began having liquidity issues in 2020. However, the extent of the issues was not known to Caisse Desjardins until 2021, when it learned that the company had made practically no sales since the spring of 2021 and that the accounts receivable appearing in the company's interim financial statements were not accurate, since amounts characterized as “accounts receivable” were actually goods that had been delivered to customers on consignment. As a result, the actual value of the company’s current receivables is practically nil. PWC was appointed receiver. Counsel is Janson Larente for Caisse Desjardins. By Dina Milivojevic
HockeyShot Inc., a Mississauga, Ontario-based online specialty retailer of hockey training equipment, was placed in receivership on January 6, on application by Pivot Financial I Limited Partnership, owed approximately USD $1.1 million and CDN $2.5 million. After suffering operating losses and liquidity issues in 2021, the company engaged Welch Capital Partners to assist it to find a potential investor or buyer. These efforts were unsuccessful, and Pivot declared the entire amount of the loan due and payable on December 17. PwC was appointed receiver. Counsel is Chaitons for Pivot, Torkin Manes for the company and DLA Piper for the receiver. By Dina Milivojevic
13364097 Canada Inc. and Bao Ying Cao (collectively, the "Applicants") had a receiver appointed over certain funds (the "Contested Funds") on December 7. According to their factum, the Applicants are the innocent holders of approximately $1.3 million worth of Contested Funds as a result of a scheme (the “Sunrise Technology Scheme”) operated by the respondent Xiaodong Yang, which they now understand was a fraud. The Sunrise Technology Scheme involved the respondent Users of Sunrise Technology sending funds to the Applicants’ bank accounts under false pretenses. The Applicants sought an interpleader and receivership order to identify, account for, and distribute the Contested Funds back to those entitled to them. BDO was appointed receiver. Counsel is Polley Faith for the Applicants. By Dina Milivojevic
Ideal (BC) Developments Inc., the owner of certain vacant properties in Richmond Hill, Ontario, was placed in receivership on December 17, on application by C&K Mortgage Services Inc. and Canadian Western Trust Company, owed approximately $15.5 million. The properties are an assembly of development land which the company has been developing for construction of a residential community, consisting of 23 stacked townhomes and 49 freehold townhomes, although construction has not yet begun. The applicants' loan to the company matured on November 1 and has not been repaid. Alvarez & Marsal was appointed receiver. Counsel is Chaitons for the receiver, Dickinson Wright for the applicants and Friedman Law Corporation for the company.
Community Marine Concepts Ltd., Victoria International Marina Ltd., Eternaland Yuheng Investment Holding Ltd., and 0736657 B.C. Ltd., Vancouver Island, British Columbia based companies, were placed in receivership on December 13, on application by the Bank of Nova Scotia. The Bank provided the companies with a non-revolving term loan in the principal amount of $17,080,000 to provide bridge financing for the construction of a luxury yacht center in Victoria Harbour on Vancouver Island known as the Victoria International Marina. As at August 2021, when the petition was initially filed, the companies had been in default of their payment obligations for 15 months and remained indebted to the Bank in the amount of approximately $15.5 million, excluding fees and interest. The receivership order was granted on November 1 and provided that the companies would automatically be placed in receivership on December 13 unless the debt to the Bank was repaid in full prior to that date. Alvarez and Marsal was appointed receiver. Counsel is Blakes for the Bank and Crystal Law for the companies.