Real Estate

Hazelton Development Corporation

Hazelton Development Corporation, a developer of a residential real estate project known as the “Highlight of Mississauga” located at 4064, 4070 and 4078 Dixie Road, Mississauga, Ontario, obtained CCAA protection on April 20. The majority of the 265 planned units in the project have been sold, although construction is at the stage that twelve of the fourteen floors have been constructed, though not finished. Construction was significantly delayed due to pandemic-related shutdowns, labour and supply shortages, and increasing costs. Construction lenders are Meridian Credit Union Limited and Centurion Mortgage Capital Corporation, with Westmount Guarantee Services Inc. providing a Tarion Warranty Corporation Bond and a deposit insurance facility. Total debts are in excess of $80 million. Counsel is Miller Thomson for the company; TGF for the monitor; Simpson Wigle for Meridian; Robbins Appleby for Centurion; BLG for Westmount; and Hodder, Wang for Triumph Eastern Investments (the DIP lender). By Dina Milivojevic

0989705 B.C. Ltd., Alderbridge Way GP Ltd., and Alderbridge Way Limited Partnership

0989705 B.C. Ltd., Alderbridge Way GP Ltd., and Alderbridge Way Limited Partnership, Richmond, British Columbia-based real estate development companies, were granted CCAA protection on April 1. The companies have spent several years developing a high-density, mixed-used construction project, which will comprise seven mid-rise towers atop a multi-level podium with three levels of underground parking. In March 2020, citing the effects of COVID-19 and the economic outlook, Romspen Investment Corporation, the companies’ senior secured construction lender, suspended all further draws and advances under the companies’ construction facility. The companies spent the next year seeking alternative construction financing, economic concessions from project proponents, and additional injections of equity, while securing several further advances from the companies’ second-lien lenders (the "2ML Lenders"). However, the companies were unable to secure the considerable replacement construction financing that the development required. Currently, the companies have completed the major pre-construction phases of the development, pre-sold a significant portion of the development and largely finished the major undertaking of site excavation and off-site civil work. They have worked with their 2ML Lenders on a restructuring transaction to be effected by way of a credit bid that would, among other things, see Romspen and any other priority claims paid and a significant portion of the 2ML Lenders’ debt converted to equity and, concurrently with the development of a credit bid, a sale and investment solicitation process run with the assistance of a monitor with enhanced powers. A&M was appointed monitor. Counsel is Dentons for the companies; Fasken Martineau for A&M as monitor; Blakes for Romspen; Nathanson, Schachter & Thompson (counsel) and KPMG (advisors) for CIBT Education Group Inc., GEC Education City (Richmond) Limited Partnership and GEC (Richmond) GP Inc.,; McMillan for R. Jay Management Ltd. and MNB Enterprises Inc.; Digby Leigh & Co. for MNB Enterprises Inc.; Bennett Jones for JV Driver Investments Inc.; McCarthy Tetrault for Metro-Can Construction (AT) Ltd.; and McLean & Armstrong for Metro-Can Construction (AT) Ltd. By Dina Milivojevic

1692260 Alberta Ltd. and Birkill Holdings Ltd.

1692260 Alberta Ltd. and Birkill Holdings Ltd. were placed in receivership on March 25, on application by RBC, owed collectively approximately $2.5 million. The companies owned and operated multi-family residential rental properties, a gas station and a vacation rental property in the areas of Lac La Biche, Grasslands and Wandering River, Alberta. MNP was appointed receiver. Counsel is Dentons for RBC. By Dina Milivojevic

Sheldon Gross Limited

Sheldon Gross Limited, a Toronto, Ontario-based company, was placed into bankruptcy on March 7, listing approximately $6.4 million in liabilities. The company is related to Gross Capital Inc., a Toronto-based real estate investment firm that filed for bankruptcy on June 25, 2021. KSV is the bankruptcy trustee for both estates. By Dina Milivojevic

Bayview Creek (CIM) LP, CIM Investments Development Inc., and CIM Bayview Creek Inc.

Bayview Creek (CIM) LP, CIM Investments Development Inc., and CIM Bayview Creek Inc., the owners of a residential development property in Richmond Hill, Ontario, had a receiver appointed on March 2, on application by DUCA Financial Services Credit Union Ltd., the first-ranking mortgagee of the property. Spergel (GRIP) was appointed receiver. Prior to the receiver’s appointment, CIM Bayview Creek Inc. previously attempted to restructure its affairs through NOI proceedings, but was unable to file a proposal and was adjudged bankrupt on February 8, 2021. On May 4, 2021, Bayview Creek (CIM) LP also filed an assignment in bankruptcy. The receivership application was successful over a competing application by Bryton Creek Residences Inc., the second-ranking mortgagee of the property, to exercise an option to purchase the property. Counsel is Devry Smith Frank for DUCA; BLG for the receiver; Dickinson Wright for Bayview Creek (CIM) LP, CIM Investments Development Inc. and others; Himelfarb Proszanski for Bayview Creek (CIM) LP; Miller Thomson for CIM Bayview Creek Inc.; Owens Wright for Bryton Capital Corp. GP Ltd. and Bayview Creek Residences Inc.; Pallett Valo for the private receiver appointed by Bryton Capital Corp. GP Ltd., Cassels for the trustee in bankruptcy for Bayview Creek (CIM) LP, Gowlings WLG for GR (CAN) Investment Co. Ltd. & Monest Financial Inc. and Torys and Hummingbird Lawyers for certain debenture holders. By Dina Milivojevic

Cochran Landing Limited Partnership, Cochran Landing GP Inc. and CL Development Ltd. (collectively, the “Cochran Landing Group”)

Cochran Landing Limited Partnership, Cochran Landing GP Inc. and CL Development Ltd. (collectively, the “Cochran Landing Group”), a Halifax, Nova Scotia-based group of real estate development companies, filed an NOI on February 25, listing approximately $4.6 million in liabilities, the majority owed to German investors. BDO is the proposal trustee By Dina Milivojevic

Epic Alliance Inc.

EY has issued its first report in its capacity as inspector of Epic Alliance Inc. and certain related entities (the “EA Group”), a Saskatoon, Saskatchewan-based group of companies that facilitated the buying, selling, renting, subletting, and renovating of residential real estate. EY was appointed 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. Based on the information currently available (which is unaudited and incomplete), the inspector reported that, among other things, the group frequently experienced cash shortfalls on its Hassle-Free-Landlord Program properties due primarily to low occupancy rates and high repairs and maintenance costs. The company was planning to expand its program into the United States, but these plans appear not to have materialized, with EY reporting that the $3.8 million raised for the expansion appearing to have been used to fund losses in the Canadian corporations. The inspector also confirmed that the EA Group raised $370,000 from four investors in contravention of a cease trade order in 2021. Counsel is MLT Aikins for the inspector. By Dina Milivojevic

Trinity Ravine Community Inc.

Trinity Ravine Community Inc., a registered charitable organization whose primary business is the development of a real estate project known as Trinity Ravine Community in Scarborough, Ontario, obtained CCAA protection on February 23. The purpose of the project is to provide a community for senior citizen residents, with accessibility features and specialized amenities to enable its residents to “age in place”. There are a total of 439 purchasers in the project, and a total of approximately $27.6 million in deposits has been paid to the organization. Due to factors which include skyrocketing construction costs, delays and uncertainty caused by the COVID-19 pandemic, the project’s financial model is no longer viable. The company commenced CCAA proceedings to obtain the necessary breathing room to implement a dual track sales process and develop a plan to be put to creditors. Deloitte was appointed monitor. Counsel is Miller Thomson for the company, Cassels for the monitor and Dentons for Nahid Corp. By Dina Milivojevic

1143924 B.C. Ltd., Buffalo-Gentai (St. Johns) Investment Limited Partnership and Buffalo-Gentai Development Ltd.

1143924 B.C. Ltd., Buffalo-Gentai (St. Johns) Investment Limited Partnership and Buffalo-Gentai Development Ltd., the owners of certain lands in Port Moody, British Columbia, had a receiver appointed on January 27, on application by Prospera Credit Union, which provided mortgage financing in connection with the purchase of the lands. The companies have committed various events of default under the Prospera loan agreement, including by seeking a windup and dissolution of Buffalo-Gentai (St. Johns) Investment Limited Partnership, one of the debtors. The Bowra Group was appointed receiver. Counsel is Owen Bird Law Corporation for Prospera. By Dina Milivojevic

Ideal (WC) Developments Inc

Ideal (WC) Developments Inc., a single purpose company incorporated for a planned residential real estate development located at 6532 and 6544 Winston Churchill Boulevard, Mississauga, Ontario, was placed in receivership on January 11, on application by Empirical Capital Corp., owed over $6 million. The loan was to be fully repaid in March 2020, but the company and Empirical entered into subsequent forbearance agreements, the last of which expired on November 15, 2021. During the forbearance period, the company indicated that it had entered into an agreement of purchase and sale with respect to the properties. However, the company failed to complete the sale transaction on the scheduled closing date of November 15, 2021. RSM was appointed receiver. Counsel is Garfinkle Biderman for Empirical. By Dina Milivojevic

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