May 25, 2021
Okje Cho & Family Enterprise Ltd. (“Okje”) and 2341567 Ontario Ltd. (“234 Ontario”) were placed in receivership on May 25 on application by Meridian Credit Union Limited (“Meridian”), owed approximately $7.77 million. 234 Ontario operates as a Hampton Inn by Hilton hotel franchise in Napanee, Ontario, and Okje owns the property from which the hotel operates. Due to the COVID-19 pandemic, Okje requested payment relief from its obligations in spring 2020. Meridian agreed, deferring principal and interest payments for a consensual period of time. Okje subsequently failed to make suitable repayment arrangements with Meridian and has not made payments under certain credit facilities since December 2020 and January 2021, as well as failing to repay a third credit facility by its maturity date in October 2020. In addition, royalties to the franchisor, Hilton Hotels, accruing municipal property taxes and harmonized sales tax have gone unpaid for a period of time, threatening operations. BDO Canada was appointed receiver. Counsel is Lipman, Zener & Waxman for Meridian and Loopstra Nixon for the receiver.