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.
9113 Bathurst Street and 9125 Bathurst Street, Richmond Hill, Ontario — owned by Highyon Development No. 118 LP ("Highyon LP") — were placed in receivership on September 18 on application by Vector Financial Services Limited, owed approximately $5.8 million. Highyon LP, which acquired the properties in order to build a series of townhouses, has not identified or advised the applicant of any source of liquidity available to repay its indebtedness. RSM was appointed receiver. Counsel is Gowling WLG for the applicant, Henry K. Hui & Associates for the company and Paliare Roland for the receiver.
Port Capital Development (EV) Inc. and Evergreen House Development Limited Partnership, subsidiaries of the Port Capital Group, which is in the business of real estate development and management primarily in British Columbia, obtained protection under the CCAA on May 29, listing approximately $46.7 million in liabilities, including $20.1 million to CMLS Financial Ltd. and $14.7 million to Aviva Insurance Company of Canada. Together, the companies own the Terrace House Project, a 19-storey mixed-use luxury residential development located in Vancouver. As the companies are undercapitalized in terms of equity, they are unable to meet their obligation to fund any cost overruns on the Terrace House Project. Furthermore, the Port Capital Group has been unable to advance funds, so the companies cannot pay the interest due to their construction lender, CMLS Financial. EY was appointed monitor. Counsel is Gowling WLG for CMLS Financial, Blakes for the monitor, and Lawson Lundell for Aviva Insurance.
Diam Danforth Property Inc., a real estate development company and the registered owner of 2359 Danforth Avenue, Toronto, Ontario (the "Property"), was placed in receivership on May 4 on application by Melvyn Eisen, a secured creditor that advanced $11.5 million to the company pursuant to a commitment letter. The Property is a parcel of vacant land on which the company intended to construct a condo project. However, the project has been stalled since January 2019. In addition to the company's defaults on the commitment letter, the project site is also currently subject to an Order to Remedy Unsafe Building. Rosen Goldberg was appointed receiver. Counsel is Goldman Sloan Nash & Haber for the applicant, Laishley Reed for the company, and Blaney McMurtry for the receiver.
33 Yorkville Residences ("33 Yorkville"), The Clover on Yonge ("Clover"), and 480 Yonge Street ("Halo") - three large downtown Toronto, Ontario luxury condo projects by the Cresford Group - were placed in receivership on March 27. Investors bcIMC Construction Fund and Otéra Capital, owed approximately $163.2 million, filed the receivership application for 33 Yorkville, while bcIMC Construction Fund and bcIMC Specialty Fund, owed approximately $214.9 million, filed the application for Clover and Halo. After the applicants became aware of allegations of financial mismanagement and accounting irregularities at the Cresford Group, including an allegation that the developer kept separate ledgers where one set was shown to lenders and another set included additional costs, they retained PwC to review the 33 Yorkville project. PwC later advised that it had uncovered evidence of inappropriate project contracting and accounting, transfer of costs between condo projects as cost overruns began to occur, and unusual credits on condo sales. As a result of this review and the fact that the Clover and Halo projects ran significantly over their approved budgets, the applicants concluded that Clover and Halo had defaulted on their obligations under the construction financing. PwC was appointed receiver. Counsel is Torys for bcIMC Construction Fund and bcIMC Specialty Fund, Norton Rose Fulbright for Otéra Capital, McCarthy Tétrault for the receiver and Aird & Berlis for the companies.
Penady (Barrie) Ltd ("PBL"), a Toronto, Ontario-based subsidiary of PenEquity Realty, a real estate investment advisor, and PRC Barrie were placed in receivership on March 25 on application by Choice Properties Limited Partnership ("CHP"), the beneficial owner of certain lands abutting real property owned by the companies (the "Barrie Property"). The Barrie Property is approximately 97% occupied, with tenants including Cineplex, Tim Hortons, and McDonald's. PBL, which has $68.2 million in liabilities, previously entered into a secured credit agreement with CHP to assist it with the development of the Barrie Property. During the course of this agreement, PBL defaulted on several occasions, including by missing payments. Although the agreement matured in January 2020, to date, all principal, interest, and other obligations under the agreement remain outstanding. The current monthly rent collected by PBL is insufficient to service its indebtedness and PBL has tried unsuccessfully to sell the Barrie Property for approximately 18 months. RSM was appointed receiver. Counsel is Osler for the applicant, Gardiner Roberts for the companies and Blaney for the receiver.