October 12, 2022
Cutting Edge Precision Services ULC, Proper Windsor Holdings ULC and SGM Real Estate Holdings ULC, an Oldcastle, Ontario-based group of companies, were placed in a limited receivership on October 12, on application by TD Bank, owed in excess of CDN$3.6 million and US$265,000. Cutting Edge carries on business as a designer and manufacturer of tooling and plastic injection molding services, while Proper Windsor Holdings holds the shares of Cutting Edge and SGM Real Estate owns the real property from which Cutting Edge operates. Over the last 10 months, the companies have been attempting to refinance their indebtedness with TD Bank. TD Bank agreed to forbear from enforcing its security until September 30 to allow the companies to complete a sale transaction. The sale fell through on September 26. TD Bank, which has a first priority charge over certain assets, initially sought a full receivership order. However, BDC, another secured lender with a first priority charge over certain other property, sought an adjournment to allow it to consider its position. The Court granted a receivership order over the property of the companies, excluding the assets in respect of which BDC is in the first secured position. The full receivership application was adjourned to October 21. Albert Gelman was appointed receiver. Counsel is Chaitons for TD Bank, Aird & Berlis for the receiver, Miller Thomson for BDC and McTague Law for the companies.
By Dina Milivojevic