October 10, 2018
2332361 Ontario, whose primary asset is a commercial office and retail complex located at 133-139 King Street West, Brockville, Ontario, was placed in receivership on October 10 on application by the company's only known secured creditor, First National Financial, owed approximately $1.6MM. The commercial complex, which has a current vacancy rate of 60%, is operating at a loss and the company can no longer cover the operating costs from the rent it receives from tenants. Given this failure to make payments, the complex's maintenance supplier has refused to make certain required repairs which the company is responsible for under its leases. As a result, the company is concerned that the tenants may begin withholding rents, which would further erode the company's liquidity. The court appointed KSV Advisory as receiver and approved a sale process for the company's real property. The appointment of a receiver will assist to normalize the operations at the complex and allow a receiver to negotiate with Elections Canada with respect to its possible lease of space beginning in November 2018. KSV intends to retain Jones Lang LaSalle, a recognized real estate brokerage, as the listing agent. To fund these receivership proceedings, First National will be providing up to $200.0M in financing. Counsel is Fasken for the applicant and Kramer Simaan Dhillon for the company.