November 4, 2021
Eco-Industrial Business Park Inc., Absolute Energy Resources Inc., Absolute Environmental Waste Management Inc., Lot 11 GP Ltd. and Lot 11 Limited Partnership (collectively, the "Absolute Entities"), which own certain lands in Edmonton, Alberta, had a receiver appointed on November 4 on application by Romspen Mortgage Limited Partnership and Romspen Investment Corporation. Each of the Absolute Entities guaranteed a loan given by Romspen to 3443 Zen Garden Limited Partnership ("Zen Garden") in 2018. The security includes mortgages over certain lands in Edmonton. Zen Garden defaulted on the loan in Texas and was petitioned into involuntary bankruptcy. An order has been made in the US bankruptcy proceedings allowing Romspen's claim in the amount of approximately USD $96.7 million. MNP was appointed as interim monitor in 2020. However, since then, the Absolute Entities have incurred property tax obligations that have resulted in the City of Edmonton issuing Notifications of Public Auction for the Edmonton lands, with the auction set to take place on November 25, 2021. MNP was appointed receiver. Counsel is BLG for Romspen and Dentons for the Absolute Entities.