Société en commandite Industriel-Léger ("SEC"), a limited partnership set up for the purpose of managing and operating real estate holdings located in Magog and Sherbrooke, Quebec — along with its general partner, 9058-0150 Québec Inc. — were placed in receivership on March 26 on application by FWCU Capital Corp. ("FW Capital"), owed approximately $12.4 million. In July 2016, FW Capital entered into a loan agreement with Kanwal Inc. ("Kanwal") on the condition that SEC guarantee the obligations and liabilities of Kanwal. As a result of various defaults by Kanwal under this loan agreement, FW Capital demanded payment of Kanwal's indebtedness from SEC. FW Capital, which has not received any payments since 2018, alleges that Kanwal and SEC consistently pursued refinancing with a third party, Waygar Capital, despite being aware that it was objected to by FW Capital. MNP was appointed receiver. Counsel is Robinson Sheppard Shapiro for FW Capital and Fishman Flanz Meland Paquin for the receiver.
2607380 Ontario Inc., which was in the business of developing and operating a multi-purpose commercial building located in Burlington, Ontario, was placed in receivership on March 18 on application by Meridian Credit Union Limited, owed approximately $18.5 million. In February 2020, the company obtained protection under the CCAA, with Meridian providing DIP financing during the proceedings. The DIP facility agreement contained certain milestone dates in connection with the SISP being run in the CCAA proceedings. However, the company did not meet these requirements and, on January 19, 2021, counsel to Meridian issued a default notice. As of March, the company had not provided Meridian with a prospect of a firm commitment for a refinancing or a sale transaction. As a result, it served an application seeking to terminate the CCAA proceedings and have msi Spergel (GRIP) appointed as receiver. Counsel is Gowling WLG for Meridian, Stikeman Elliott for the company, Bennett Jones for Richter, the monitor, Chaitons for Bridging Finance Inc., McCarthy Tétrault for Maynbridge Capital Inc., and Weirfoulds for Crossroads Christian Communications.
Mamatas Real Estate Holdings Unlimited Liability Company, a Vancouver, British Columbia-based company that owns property at 3920 North Talbot Road and 5175 Ure Street, Tecumseh, Ontario (collectively, the "Real Property"), was placed in receivership on March 11 on application by BDC, owed approximately $4.8 million. Toolplas Systems Inc. ("TSI"), an affiliated company, operates from the Real Property pursuant to a lease with the company. In February, TD - a secured creditor of TSI - demanded repayment of certain indebtedness owing by TSI. In March, BDC issued a demand for payment from the company of its indebtedness. Fuller Landau was appointed receiver. Counsel is Chaitons for the applicant, Dickinson Wright for the company, and Miller Thomson for TD.
10268054 Canada Corp., a Toronto, Ontario-based residential condominium developer, was placed in receivership on January 21 on motion by Centurion Mortgage Capital Corporation ("Centurion"), which had made a secured loan to the company for approximately $16.6 million to finance the company's condo project located at 135 Mandrake Street, Ajax, Ontario (the "Project"). To date, the company has defaulted on its loan by, among other things, failing to deliver a satisfactory construction budget or Project completion schedule to Centurion, and by failing to proceed expeditiously with the construction of the Project. Even though there have been substantial pre-sales of the Project, the company has failed to make any progress on the Project's construction. Furthermore, a review by Centurion into whether the company had applied the advanced funds for proper purposes uncovered that the company appeared to have misapplied over $2.9 million of funds. At this stage, Centurion has no clarity into where the $2.9 million was used and suspects the funds were misappropriated. BDO was appointed receiver. Robins Appleby is counsel for Centurion.
Rockwater on Main Inc., which owns and oversees the development of a proposed residential site located at 64 Main Street East, Hamilton, Ontario, was placed in receivership on January 21 on application by a mortgagee. The company has approximately $9.0 million of liabilities. The immediate appointment of a receiver and manager will provide necessary stability, transparency, and oversight in the sale and/or development of the site. Goldhar & Associates was appointed receiver and manager. Counsel is Youngman Law for the applicant and Fogler Rubinoff for the receiver and manager.
2335779 Ontario Inc., a Mississauga, Ontario-based company which owns and oversees the development of residential real estate, had its interest in real property located at 78 Trafalgar Road, Oakville, Ontario, placed under receivership on December 17 on application by Home Trust Company ("Home Trust"), owed approximately $2.3 million. In 2015 and 2016, Home Trust extended a mortgage loan in favour of the company and obtained a $5.1 million charge against the Oakville property as security for the loan. The company agreed that Home Trust would have the right to seek the appointment of a receiver upon default under the terms and conditions of the mortgage. In April 2020, the company defaulted on its payments under the mortgage and in June 2020, Home Trust demanded repayment of the indebtedness in full. To date, no payments have been made to Home Trust and it appears that the company has not made any attempts to refinance the indebtedness or sell the Oakville property. Home Trust has lost trust in the ability of the company's management to develop and implement a plan to repay its indebtedness, especially given the alleged illegal wrongdoings of the company's principal, Moninder Khundal, and his associates. The immediate appointment of a receiver will provide necessary stability, transparency, and oversight in the sale of the Oakville property. Fuller Landau was appointed receiver and manager. Gowling WLG is counsel to the applicant.
33 Laird Inc., 33 Laird GP Inc. and 33 Laird Limited Partnership, entities created for the purpose of pursuing a commercial real estate development project in Toronto, Ontario, each filed an NOI on November 28. The project is in the early stages of construction, with part of the structural work complete, but very little mechanical or electrical work and no finishing work. The Project was principally financed through secured loan facilities with DUCA Financial Services Credit Union Ltd. (“DUCA”). DUCA made a demand on its loan and security on November 19, having identified various financial issues with the project, including cost overruns, the impact of the COVID-19 crisis on costs, timeline to complete, and also potential viability of the proposed tenants, which would impact takeout financing at the end of the project in order to allow DUCA as the construction lender to exit. MNP was appointed proposal trustee. Counsel is Goldman Sloan Nash & Haber for the companies and Weisz Fell Kour for MNP as proposal trustee.
Brightstar Newcastle Corporation, a developer of a 78-unit condominium located in Newcastle, Ontario, and certain other related parties were placed in receivership on November 25, on application by Centurion Mortgage Capital Corporation (“Centurion”), owed approximately $750,000. The Centurion loan, which was used to finance the condominium project, matured on June 30, 2019 and was not repaid. As part of the relief sought, Centurion requested that a priority dispute between it and Guarantee Company of North America regarding the proceeds from the sale of units in the condominium be resolved by way of motion within the receivership proceedings. That relief does not appear to have been granted. BDO was appointed receiver. Counsel is Robins, Appleby for the applicant, Richard J. Mazar Professional Corporation for the company and BLG for the Guarantee Company of North America.
Unionville Re-Dev Corporation, Unionville Re-Dev Phase 2 Corporation, AND Blacksmith Partners Inc., which collectively own the properties municipally known as 160, 162, 166, 170, 174-178, and 186 Main Street, Unionville, Ontario (the "Property"), had their Property placed in receivership on October 27 on application by First Source Financial Management Inc. ("First Source"), owed approximately $14.2 million. The Property is comprised of numerous buildings with various tenants that operate businesses such as restaurants, retail stores, law firms, and pharmacies. The companies, which have been unable to repay their indebtedness to First Source or obtain a commitment for new financing, also owe substantial arrears of property taxes to the City of Markham. Counsel is Paliare Roland for the applicant, Torkin Manes for the receiver, and Friedmans Law Firm for the companies.
Konnect Brookside Villas Limited Partnership and Konnect Brookside Holdings Ltd., developers involved in the development and construction of a three-phase 69 unit townhome project on leased property located within the self-governed lands of the Westbank First Nation, were placed in receivership on October 6 on application by Canadian Western Bank ("CWB"), owed approximately $9.3 million. CWB had provided the companies with a construction mortgage facility for financing Phase 1 of the project, consisting of 23 townhomes. However, the construction project — which began in 2018 — has been plagued by a host of problems, including being behind schedule, cost overruns, builders' liens being registered against the property, and a dispute between the developer and its general contractor. Although the companies are unable to meet the requirements and payments of the loan, CWB is still willing to fund the completion of Phase 1 of the project. Grant Thornton was appointed receiver. Counsel is Owen Bird Law for the applicant and Fasken for the receiver.