54 Shepherd Road Inc. and 60 Shepherd Road Inc., owners of real property in Oakville, were placed in receivership on October 24 on application by FirstOntario Credit Union, owed approximately $2.6 million. The debtors were planning on developing a high-rise, mixed residential/commercial use project on the property but were unable to obtain construction financing, which, according to the debtors, was due to the structure of its existing financing from syndicated investors. With the debtors unwilling to accept the terms of a forbearance agreement that included bringing property tax and interest payments up-to-date, FirstOntario moved to enforce its security. msi Spergel (GRIP) was appointed receiver. Counsel is SimpsonWigle for the applicant and McCarthy Tétrault for the companies.
3070 Ellesmere Developments, an Ontario corporation that owns a vacant parcel of land municipally known as 3070 Ellesmere Road, Scarborough, Ontario, was placed in receivership on September 13 on application by 2478888 Ontario Inc., owed approximately $6.6 million. On August 20, the company filed an NOI and subsequently served materials seeking, among other things: the appointment of a Chief Restructuring Advisor, the appointment of a sales process advisor and the approval of a stalking horse purchase agreement. The lender opposed this motion on the basis that it was in direct contravention of its agreement with the debtor. It also took issue with the anticipated costs of the debtor-driven proceedings, arguing that a Chief Restructuring Advisor, a sales process advisor and a proposal trustee are not all required to conduct a sale process for a vacant parcel of land that a receiver alone could run at a significantly lower cost in a substantially similar timeline. RSM was appointed receiver. Counsel is TGF for the applicant and Cassels Brock for the company.
Venturi Logging, a Merville, British Columbia-based logging company, was placed in receivership on September 25 on application by CWB, owed approximately $603.7 thousand. Grant Thornton is the receiver. Owen Bird is counsel for the applicant.
Belkin Holdings and certain other related companies were placed in receivership on August 2 on application by BMO, owed approximately $8.1 million. The companies' primary asset is a 6 story apartment building in Winnipeg, Manitoba referred to as Kelly Towers. The companies' management failed to respond in a timely fashion or at all to requests for financial and other information, and with its financial benchmarks deteriorating, RBC demanded repayment from the companies. MNP was appointed receiver. Bennett Jones is counsel for the applicant.
R.D.E. Ventures, a Spruce Grove, Alberta-based equipment rental company, was placed in receivership on August 16 on application by National Bank, owed approximately $11.0 million. In March 2019, the then CFO of the company contacted National Bank requesting additional time to provide audited financial statements. By late April, the statements had not yet been provided, despite repeated assurances from the CFO that the statements were a day or two away from being delivered. In May, 2019, National Bank elevated the request for statements to the president of the company, who investigated and discovered that auditors had not even been hired. Concerned with this news, as well as the deteriorating financial position and defaults of the company, National Bank issued a demand for repayment on July 9, which triggered an NOI filing by the company. Further discoveries of funds being diverted to another financial institution, as well as a lack of a feasible restructuring proposal or plan, led National Bank to request that the proposal proceedings be terminated. FTI was appointed receiver. Counsel is McCarthy Tétrault for the applicant and Ogilvie for the company.
Imperial Excavating, a Holyrood, Newfoundland-based excavation company, filed for bankruptcy on August 16. Deloitte is the bankruptcy trustee.
2547357 Ontario Inc., owner of the property municipally known as 365 Bayly Street West, Ajax, Ontario, was placed in receivership on August 7 on application by a group of secured creditors owed approximately $2.6 million. The company's property is a vacant piece of land on which the debtor had planned to build a car dealership. The debtor subsequently failed to make interest payments on the loan due to its bank account being frozen. When counsel for the applicants proposed a consensual arrangement to sell the property through CBRE, it learned that the debtor had already signed an exclusive listing agreement with another brokerage. Concerned that it would be cumbersome, if not impossible to achieve a sale of the property on a consensual basis, the applicants moved to have a court-supervised officer appointed to properly market and sell the property. Rosen Goldberg is the receiver. Counsel is Dickinson Wright for the applicants.
Bant Printocut Limited, a Markham, Ontario based provider of print finishing services, filed for bankruptcy on July 31, listing liabilities of $515.0M. James Williams & Associates was appointed bankruptcy trustee.
Le tour des champions de Montréal, a Montreal, Quebec-based company that was organizing an equestrian show jumping event planned for September 2019 in Montreal, Quebec, filed for bankruptcy on July 30, listing $1.6MM in liabilities, including $785.0M to Dutch-based Global Champions Tour B.V. Founded in 2005, the Longines Global Champions Tour is an annual show jumping series that brings together the top show jumpers in the world to compete in prestigious locations such as Paris, Monaco, Shanghai and Rome. Montreal was slated to be a destination for the first time in 2019, but event organizers announced on July 23 that they were cancelling the event, claiming that they could not meet on a timely basis the winning conditions to ensure the success of the event. PwC is the bankruptcy trustee.
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.