April 15, 2021
Central Park Ajax Developments Phase 1 Inc., an Ontario corporation incorporated for the purpose of building a planned residential real estate development, along with various related companies, had their properties located at 134, 148, 152, 184/188, 214, 224 and 226 Harwood Avenue South, Ajax, Ontario (the "Harwood Properties") placed under receivership on April 15 on application by 2615333 Ontario Inc. Pursuant to a Loan Purchase Commitment dated May 16, 2018, the applicant paid approximately $8.6 million to purchase certain loans which had been advanced to the companies by Toronto Capital Corp. and a syndicate of investors. The applicant also provided further loan facilities to the companies. Currently, the Town of Ajax has asserted a right to re-purchase some of the Harwood Properties. The companies dispute the litigation on the basis that the proposed repurchase price is unconscionably low and that it will result in unjust enrichment to the Town of Ajax, to the detriment of the other stakeholders. RSM Canada was appointed receiver. Counsel is Garfinkle Biderman for the applicant, Blaney McMurtry for the companies, and Ritchie Ketcheson Hart & Biggart for the Town of Ajax.