Sunrise Acquisitions (Hwy 7) Inc., the owner of the Unionvillas townhome development project in Markham, Ontario (the "Project"), was placed in receivership on June 9 on application by KingSett Mortgage Corporation ("KingSett"), owed approximately $2 million. Since 2015, KingSett has provided senior secured financing to the company to enable the development of the Project, which comprises 52 built townhomes. In addition to KingSett, the other primary financing source for the Project was a syndicated mortgage financing arranged by Fortress Real Developments Inc. and administered through Sorrenti Law. In May 2021, the company defaulted under its loan facility with KingSett by failing to make a required interest payment, which remains unpaid to date. KingSett has lost faith in the company's management and wishes to exercise its rights to appoint a receiver to market and sell the company's assets and properties. KSV was appointed receiver. Counsel is Bennett Jones for the receiver, Cassels for the applicant, and Osler for FAAN Mortgage Administrators Inc., in its capacity as trustee of Sorrenti Law.
Roxdale Gardens Ltd., a Calgary, Alberta-based real estate company, was placed in receivership on June 24 on application by a group of applicants (collectively, the "Preferred Shareholders"), including Cantech Oilfield Equipment Ltd. and King Chi Hung. The Preferred Shareholders invested approximately $3.4 million in the company. These investment funds were collateralized by way of a $10 million mortgage registered against two parcels of land in Leduc County, Alberta (the "Lands"). The Lands were to be the site of a luxury residential real estate development scheme called the "Roxdale Gardens Project". The Preferred Shareholders allege that they have been oppressed through the actions of the company and claim, among other things, that the company's former directors withheld dividend payments owing to the Preferred Shareholders and failed to use the investment funds to develop the Lands. FTI was appointed receiver. Fasken is counsel to the Preferred Shareholders.
1436126 Alberta Ltd. o/a Morinville Plaza & Suites, which owns a mixed-use commercial and residential building located in Morinville, Alberta, was placed in receivership on June 22 on application by Peace Hills Trust Company ("Peace Hills"), owed approximately $1.4 million pursuant to a term loan extended by Peace Hills to the company. The Bowra Group was appointed receiver. Parlee McLaws is counsel to Peace Hills.
Alberta Foothills Properties Ltd., a Calgary, Alberta-based company that carries on a real estate development business, was placed in receivership on May 17 on application by ATB Financial, owed approximately $13.9 million pursuant to a commitment lender under which ATB Financial agreed to make certain loans to the company in order to finance a three-phase residential land development project in Okotoks, Alberta known as Wind Walk (the "Project"). By March 2018, the company had breached the terms of the commitment letter by, among other things, failing to make payments when due. After various formal extensions of the forbearance period, ATB Financial also informally agreed to allow the company two weeks to secure either a sale of the lands where the Project is located or a refinancing that would allow the company to repay the indebtedness. To date, ATB Financial has not received any evidence of substantial progress with respect to the sale of the lands or of the refinancing. FTI was appointed receiver. Fasken is counsel to ATB Financial.
10502715 Canada Inc. ("GP"), a Markham, Ontario-based company which operated a land development business with Bayview Creek (CIM) LP ("LP"), filed for bankruptcy on May 4. The GP lists approximately $14 million in unsecured liabilities and $47.6 million in secured liabilities, including $24.6 million to DUCA Financial Services Credit Union Ltd. MNP is the bankruptcy trustee.
YG Limited Partnership and YSL Residences Inc., which are part of the Cresford Group of Companies ("Cresford") and are the owner/developer of the condominium project known as Yonge Street Living Residences (the "YSL Project"), at the intersection of Yonge Street and Gerrard Street in Toronto, filed NOIs on April 30. YG Limited Partnership lists approximately $64.1 million in liabilities, including $111.8 million to Westmount Guarantee, and YSL Residences Inc. owes approximately $106.8 million to Timbercreek Mortgage Servicing Inc. The YSL Project, which is currently subject to three mortgages totalling $249 million, has been suspended for more than a year due to ongoing financial difficulties of the companies and Cresford. If the NOI proposal is implemented, Concord Properties Development Corp. or its affiliate would become the owner/developer of the YSL Project. KSV Advisory is the proposal trustee. Counsel is Aird & Berlis for the companies, Davies for the proposal trustee, and Bennett Jones for the Concord Properties Development Corp.
Central Park Ajax Developments Phase 1 Inc., an Ontario corporation incorporated for the purpose of building a planned residential real estate development, along with various related companies, had their properties located at 134, 148, 152, 184/188, 214, 224 and 226 Harwood Avenue South, Ajax, Ontario (the "Harwood Properties") placed under receivership on April 15 on application by 2615333 Ontario Inc. Pursuant to a Loan Purchase Commitment dated May 16, 2018, the applicant paid approximately $8.6 million to purchase certain loans which had been advanced to the companies by Toronto Capital Corp. and a syndicate of investors. The applicant also provided further loan facilities to the companies. Currently, the Town of Ajax has asserted a right to re-purchase some of the Harwood Properties. The companies dispute the litigation on the basis that the proposed repurchase price is unconscionably low and that it will result in unjust enrichment to the Town of Ajax, to the detriment of the other stakeholders. RSM Canada was appointed receiver. Counsel is Garfinkle Biderman for the applicant, Blaney McMurtry for the companies, and Ritchie Ketcheson Hart & Biggart for the Town of Ajax.
Nascent (Tisdale) Inc., a real estate company with the primary purpose of servicing residential lots and constructing townhouse units in a building project located in Toronto, Ontario (the "Project"), was placed in receivership on March 31 on application by Fiera FP Real Estate Financing Fund, L.P. ("Fiera"), owed approximately $13.7 million under a loan between the parties pursuant to which Fiera agreed to provide senior construction financing to the company. The company committed various events of default under the loan, including failing to, among other things, respond to specific information requests made by Fiera, meet certain pre-sales requirements, and make all required equity injections into the Project. Fiera currently alleges that it is receiving incomplete and contradictory information about the company's re-financing efforts and it has seen nothing to date that indicates any material interest by another lender in the Project. Grant Thornton was appointed receiver. Counsel is DLA Piper for the receiver, Fogler Rubinoff for Fiera and Miller Thomson for the company.
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.