Real Estate

1761112 Alberta Ltd.

1761112 Alberta Ltd., whose business consists of leasing commercial and residential units in Edmonton, Alberta, was placed in receivership on August 19, on application by RBC, owed approximately $660,000, plus interest pursuant to a commercial mortgage. The company defaulted on the payment of principal and interest, and RBC demanded payment in full of the indebtedness in January. RBC agreed to forbear until May 18, but no payment was made. EY Parthenon was appointed receiver. Counsel is Dentons for RBC and Witten for the receiver. By Dina Milivojevic

Relance D.P inc. and 9298-9524 Quebec inc.

Relance D.P inc. and 9298-9524 Quebec inc., Trois-Rivières, Québec-based real estate companies, obtained CCAA protection on August 17. The business of the companies is to invest in distressed construction projects (typically condominiums) so that the projects can be completed and the units sold. The companies are subject to various litigation claims in relation to the projects, and intend to seek a global resolution of these claims under a CCAA plan. Mallette was appointed monitor. Counsel is Daigle & Matte for the companies. By Dina Milivojevic

Epic Alliance Real Estate Inc.

Epic Alliance Real Estate Inc., a Saskatoon, Saskatchewan-based real estate company, was placed into bankruptcy on August 4. EY was previously appointed as inspector of the company and certain related entities (the "EA Group") on February 25 on application by various investors to investigate what happened to the $211.9 million in investor funds raised by the EA Group. The inspector reported that, among other things, investors may never know exactly what happened to the money raised, in part because the company's books were unaudited and incomplete and two of three computer servers that stored the electronic records had been wiped clean. EY is the bankruptcy trustee. Counsel is MLT Aikins for the inspector. By Dina Milivojevic

Applewood Marketplace Inc.

Applewood Marketplace Inc., the owner and developer of a real estate development project known as the Applewood Project, located in London Ontario, was placed in receivership on August 3, on application by MarshallZehr Group Inc., owed approximately $58 million pursuant to four credit facilities. Part of the property was being developed as apartment buildings with commercial space on the ground floor, which were expected to be completed by year-end but for the company's financial difficulties. This phase of the Project is approximately 75% complete, and the company ceased its construction operations at the site on June 1. In contravention of the credit facilities, 46 construction liens have been registered on the property in the aggregate amount of over $8 million. To date, the company has not taken any steps to vacate the liens. In addition, the company failed to pay monthly interest on three of the four credit facilities and to repay three of the four credit facilities on their maturity dates. EY was appointed receiver. Counsel is Miller Thomson for MarshallZehr and Siskinds for the company. By Dina Milivojevic

2735447 Ontario Inc. (known as Rosehill) and certain other entities

2735447 Ontario Inc. (known as Rosehill) and certain other entities were placed in receivership on July 8, on application by Rose-Isli Corp. and others. The parties were were developing a residential condominium project in Woodbridge, Ontario known as "The Rosehill Project" as a joint venture, before the relationship between them broke down. The applicants and the respondents agreed that the Rosehill Project should be sold, and that the sale process should be undertaken by a court-appointed officer. EY was appointed receiver. Counsel is Reconstruct for the receiver; Tyr for the applicants; Dickinson Wright for the respondents and Bennett Jones for Trez Capital Limited Partnership. By Dina Milivojevic

Radium Scout First Ltd.

Radium Scout First Ltd., which owns and operates a mixed-use multi-family commercial and residential property in Fort McMurray, Alberta, together with Waters Edge Shopping Centre Ltd. and W. De Silva Properties, which own and operate certain condominiums in Fort McMurray, Alberta, were placed in receivership on July 15, on application by Servus Credit Union, owed approximately $12.5 million. The companies have struggled for a number of years to make the properties financially viable. Low oil prices have significantly impacted Fort McMurray's economy and incidentally affected the demand for housing. The companies were further impacted by the COVID-19 pandemic, as well as a flood in the spring of 2020 which caused considerable damage to the Radium Scout property. Servus sought the appointment of a receiver following the expiry of the forbearance period. PwC was appointed receiver. Counsel is Miller Thomson for Servus. By Dina Milivojevic

2589504 Ontario Inc.

2589504 Ontario Inc., a Toronto, Ontario-based real estate holding company, was placed in receivership on June 15 on application by Grant Thornton in its capacity as Trustee over Benjamin Kay, Iser Kay and Jack Kay’s investments in the Company’s real property located at 100 Sheppard Avenue West, Toronto, Ontario. BDO was appointed receiver. Counsel is Chaitons for Grant Thornton, WeirFoulds for the receiver and Paliare Roland for the company. By Dina Milivojevic

0876242 B.C. Ltd., Gateway Development Limited Partnership

0876242 B.C. Ltd., Gateway Development Limited Partnership, the owners of a mixed commercial and industrial strata development located at 3333 Bridgeway Street, Vancouver, British Columbia, were placed in receivership on May 10, on application by Institutional Mortgage Capital Canada Inc., as general partner of IMC Limited Partnership, owed approximately $35.4 million. The development property was scheduled to complete in Spring 2020. Completion was delayed for over two years due to cost overruns, construction delays, and disputes between the companies and the general contractor, Prism Construction Ltd. ("Prism"). On March 15, 2022, Stuart Howard Architects Inc. issued a Certificate of Substantial Performance on the project and Certificate of Payment of $214,125 to be paid to Prism. That amount remains unpaid. The companies and Prism continued to have disputes despite the Certificate of Substantial Performance being issued due to, among other things, disagreement in the amount owing to Prism for work completed, various unapproved change orders, and Prism’s refusal to release occupancy documents required by the architect to request an occupancy inspection from the City of Vancouver. Prism issued a Notice of Suspension to stop work on the project on April 14, and various certificates of pending litigation have been filed on the property. The Bowra Group was appointed Receiver. Counsel is Bridgehouse Law for the companies, Lawson Lundell for Institutional Mortgage Capital Canada Inc., Jenkins Marzban Logan for Prism and DLA Piper for the Receiver. By Dina Milivojevic

30 Roe Investments Corp.

30 Roe Investments Corp., the owner of a condominium located at 30 Roehampton Avenue in Toronto, Ontario, was placed in receivership on May 9 on application by Kingsett Mortgage Corporation, owed approximately $1.9 million as at January 2022. The original maturity date of the loan was in April 2021. Since that time, Kingsett has agreed to three extensions to allow the company to, among other things, pursue refinancing. These efforts have not been successful. KSV was appointed receiver. The company has appealed the receivership order. Counsel is Goodmans for the receiver, Bennett Jones for Kingsett and Solmon Rothbart Tourgis Slodovnick for the company. By Dina Milivojevic

Mooney’s Bay (Ottawa) Seniors Community Real Estate Limited Partnership

Mooney’s Bay (Ottawa) Seniors Community Real Estate Limited Partnership, a partnership formed to acquire and develop land in the City of Ottawa, filed an NOI on April 28, listing approximately $27.3 million in liabilities, including approximately $15.2 million to Fiera FP Real Estate Financing Fund. The project has been approved to be developed as an active seniors living project, including a 6-floor seniors apartment and retirement residence, along with 26 town homes, 36 flats and 62 mixed use units, on a 10.6 acre site across from Mooney’s Bay in central Ottawa. The project was delayed as a result of the COVID-19 pandemic, and increasing interest costs since 2020 have caused the partnership to consider options for further capital investment, or to commence a formal sales process to divest itself of the project. The partnership is currently soliciting offers to list and market the site. MNP is the proposal trustee. By Dina Milivojevic

Sign up for the newsletter and get the latest insolvency news.

Sign Me Up