June 13, 2019
Paserium Corporation, owner of a series of condominium units in a mixed retail/commercial/residential project in Calgary, Alberta, was placed in receivership on June 13 on application by RBC, owed approximately $7.4MM. After a series of defaults in 2018, RBC intended to proceed by way of a foreclosure proceeding but soon realized that this alone would be insufficient to adequately protect the bank's security. Shortly after listing the properties for sale, RBC learned that the condominium was facing significant building repair issues. Additionally, one of the condo units that Paserium owns has been subdivided into approximately 70 rooms and is operated by Paserium as a business centre with shared office services and staff. RBC therefore decided that it would be best to appoint a receiver that could serve on the condo board and evaluate, and potentially operate, the business centre while the units were marketed for sale. Grant Thornton was appointed receiver. BLG is counsel for the applicant.