Skymark Properties 1

Skymark Properties 1, a Toronto, Ontario-based real estate management company, was placed in receivership on March 19 on application by B & M Handelman Investments et al., owed approximately $2.9MM. In July 2017, Sprint Senior Care—the only tenant in the company's building—commenced litigation against the company, seeking a declaration that it had breached the terms of their lease as well as damages. In particular, Sprint alleged that the company failed to maintain the property, causing it be in a continuous state of disrepair. The court granted an order entitling Sprint to set off from various rent obligations which the company had failed to fulfill. All of the applicants' dealings in respect of the property have been with Ara Missaghi, an authorized representative of the company. Missaghi was arrested in February in connection with a mortgage fraud investigation. Rosen Goldberg was appointed receiver. Chaitons is counsel to the applicants.

ReidBuilt

ReidBuilt, an Edmonton, Alberta-based private homebuilder, was placed in receivership on November 2 on application by RBC, owed approximately $64.6MM. ReidBuilt Worldwide, the parent company, has been struggling with debt problems for months, and will be seeking letters of intent from potential buyers until the end of the month. The court has granted an order that will allow the receiver, Alvarez & Marsal, to complete pending home sales and finish construction of houses. Counsel is Dentons for the applicant and Norton Rose Fulbright for the receiver.

1735549 Ontario

1735549 Ontario, a single-purpose entity set up by Greg Knight, a residential developer, to construct and sell a condo project in Kawartha Lakes, was placed in receivership on October 27 on application by Ontario Wealth Management Corporation, owed approximately $872.7M. The corporation does not have the funding to continue its operations. Rosen Goldberg was appointed receiver. Counsel is GSNH for the applicant and Alousis Law for the corporation.

2203284 Ontario

2203284 Ontario, which owns real property located at 98 James Street South in Hamilton, Ontario that was to be developed into a 30-storey residential condominium known as The Connolly, was placed in receivership on June 22, 2017 on application by DUCA Financial Services Credit Union, owed approximately $5.0MM. The court-appointed receiver, msi Spergel (ICIN), had attempted to retrieve the company's books and records by contacting its director, Luigi Santaguida, but was unsuccessful. Attempts to contact Santaguida's lawyer, Lawrence Zimmerman, were also unsuccessful. A year later, on June 22, 2018, the receiver brought a motion for an order requiring Santaguida and Zimmerman to give it access to the property and for an order directing certain individuals to provide the receiver with access to the company's records. Counsel is Devry Smith Frank for the receiver, Simpson Wigle for DUCA and Moldaver Barristers for the company.