July 23, 2019

Filing Type:

Company Counsel: N.H. Winter Law

Trustee: Rosen Goldberg

Applicant Counsel: Corsianos Law



Sunrise Acquisition (Bond Head), the owner of the property municipally known as 2875 Highway 27, Bond Head, Ontario, was placed in receivership on July 23 on application by a group of private lenders owed approximately $4.7 million under a second mortgage. The company purchased the property for $11.7 million in June 2016 with the intentions of developing it into 119 single family homes. The purchase was partially financed by a $7.6 million vendor-take-back mortgage. In June 2019, the applicants learned that the VTB loan had not been repaid when it came due and the VTB lender would be initiating mortgage enforcement proceedings against the company. An appraisal conducted by the applicants indicated that the VTB lender would be paid out in full from a sale but the applicants' second mortgage, and the subsequent mortgages, were at risk. The applicants therefore elected to have a receiver appointed to protect and realize upon their mortgage. Rosen Goldberg email was appointed receiver. Counsel is Corsianos Law for the applicants and N.H. Winter Law for the company.