March 18, 2021
2607380 Ontario Inc., which was in the business of developing and operating a multi-purpose commercial building located in Burlington, Ontario, was placed in receivership on March 18 on application by Meridian Credit Union Limited, owed approximately $18.5 million. In February 2020, the company obtained protection under the CCAA, with Meridian providing DIP financing during the proceedings. The DIP facility agreement contained certain milestone dates in connection with the SISP being run in the CCAA proceedings. However, the company did not meet these requirements and, on January 19, 2021, counsel to Meridian issued a default notice. As of March, the company had not provided Meridian with a prospect of a firm commitment for a refinancing or a sale transaction. As a result, it served an application seeking to terminate the CCAA proceedings and have msi Spergel (GRIP) appointed as receiver. Counsel is Gowling WLG for Meridian, Stikeman Elliott for the company, Bennett Jones for Richter, the monitor, Chaitons for Bridging Finance Inc., McCarthy Tétrault for Maynbridge Capital Inc., and Weirfoulds for Crossroads Christian Communications.