1902408 Ontario, a Brockville, Ontario-based corporation, had certain of its property placed in receivership on January 7 on application by Grant Thornton, in its capacity as court-appointed receiver of Paramount Equity Financial Corporation, Silverfern GP and other related entities, owed approximately $5.4MM pursuant to a loan that was secured by a mortgage registered against title to real property in Brockville, Ontario (the "Brockville Property"). The Brockville Property includes an approximately 143,000 square foot building complex that was previously Greenville Christian College. The building complex, which is currently operating as an event space under the name "Thousand Island Village", consists of 19 two-storey apartment townhouses, a dining hall, chapel, offices, a coffee shop and a dormitory that is currently occupied by students from the Fulford Academy. On June 2018, Grant Thornton demanded full payment of the outstanding amount of the loan. To date, the company has not made any payments to Grant Thornton in connection with its demand. Grant Thornton was appointed receiver of the Brockville Property. Chaitons is counsel to the applicant.
WEQ Holdings (formerly WesternOne) (TSX:WEQ), a Vancouver, British Columbia-based regional equipment rental provider of aerial lifts and heat solutions, was placed in liquidation on December 17. In October, United Rentals entered into an agreement to acquire the assets of WesternOne Rental & Sales from its parent company for approximately $91.8MM in cash. The Bowra Group was appointed liquidator. Counsel is Farris for the company and Lawson Lundell for the liquidator.
2556733 Ontario, which owns real property located at 68 Tycos Drive, Toronto, Ontario, was placed in receivership on December 6 on application by RBC, owed approximately $4.4MM in connection with a mortgage loan. The primary tenant is Benelife, which carries on a gym business on the lower level of the property. After the company was in arrears of the mortgage loan, RBC made written demand on the company in April 2018 for payment of its indebtedness. Following this demand, RBC entered into an accommodation with the company which provided time to the company to bring the mortgage loan into good standing. Under this accommodation letter, the company was required to fully pay the property tax and utility tax arrears by September 2018, which the company failed to d0. Despite RBC granting a significant amount of time to the company, it has yet to repay in full the indebtedness owing to RBC. Spergel (ICIN) was appointed receiver. Minden Gross is counsel to RBC.
68 Belgrave Avenue, a property in Toronto, Ontario on which a single-family dwelling is being built, was placed in receivership on December 4 on application by Owemanco, a mortgage broker based in Toronto. Ontario Wealth Management Corporation ("OWMC"), a related entity to Owemanco had agreed to fund a $1.1MM construction loan to the property's owner, Mr. De Silva. The initial advance of funds occurred in August 2017, while the balance of the loan was to be advanced in stages to complete the construction project. However, after Owemanco's inspections in late 2017 revealed that little progress was being made on the construction of the house, it advised Mr. De Silva that no further advances would be made. After Mr. De Silva defaulted on the Owemanco mortgage in September 2018, Owemanco took possession of the property a month later, retaining a property manager and setting up hydro and gas accounts for the property. Currently, Mr. De Silva does not appear to have the equity or other financial means to advance construction of the house beyond its current state, which is about 80% complete. Because he is no longer in possession of the property, there is no construction occurring nor is the house listed for sale. The unfinished state of the house significantly reduces the pool of buyers available, further reducing the likelihood that Mr. De Silva will be able to sell the property in a timely manner. In addition to the Owemanco mortgage, there is a second mortgage and two certificates of pending litigation registered on title to the property. Owemanco is only prepared to proceed through a court-appointed receiver, as a receivership would permit clear title as well as simplify and unify in one proceeding the competing claims of subsequent encumbrancers relating to the property. Further, a receiver, as an officer of the court, is better positioned than the debtor, or Owemanco under a power of sale, to consider and make recommendations as to the disposition of any surplus proceeds. Rosen Goldberg was appointed receiver and will consider either expediting the sale of the property as is, or completing the construction of the property and selling it afterwards. Counsel is Andrew Pigott Professional Corporation for the applicant and GSNH for the receiver.
Hashtag Electric, a Concord, Ontario-based electrical contractor, filed for bankruptcy on November 14, listing $334.1M in liabilities, including $73.2M to CIBC. Dodick Landau is the bankruptcy trustee.
Royal Électrique, a Saint-Laurent, Quebec-based electrical company, filed an NOI on October 26. KPMG is the proposal trustee.
4002911 Canada, a Saguenay, Quebec-based company, filed an NOI on October 18, listing $260.0M in liabilities. Raymond Chabot is the proposal trustee.
1663284 Ontario, an Ottawa, Ontario-based company, filed for bankruptcy on October 16, owing $45.0M to CRA. Raymond Chabot is the proposal trustee.
Voyage Vasco Saint-Eustache des Patriotes, a Montreal, Quebec-based company comprised of 60 travel agencies across Canada, had a provisional administrator appointed over its business on October 15 in a decision rendered by the Office de la protection du consommateur. PwC was appointed provisional administrator.
Vacances Sinorama, a Montreal, Quebec-based tour agency that sells bus tours and low-cost tours of Asian countries, filed for bankruptcy on October 12, listing approximately $13.5MM in liabilities. In July, PwC was appointed as provisional administrator over the business in a decision rendered by the Office de la protection du consommateur ("OPC"). The OPC took this initiative following the company's failure to comply with the requirements of the Travel Agents Act in connection with the the way it handled clients' payments. PwC was tasked with, among other things, arranging travel for customers and administering a claims process. Groupe Serpone was appointed bankruptcy trustee.