Splash Canyon Waterpark & Resort

Splash Canyon Waterpark & Resort, a Minesing, Ontario-based waterpark that formerly included a camping park, was placed in receivership on May 7 on application by Romspen, owed approximately $100.8MM. On May 18, 2017, Kawartha Downs, a related corporation also owned by Harvey Ambrose, was placed in receivership on application by Romspen. Splash Canyon was added as a respondent to that proceeding. The Splash Canyon property, which has been closed for more than 6 years, is currently abandoned; the site has fallen into major disrepair and been subject to extensive vandalism. Rosen Goldberg was appointed receiver. Dickinson Wright is counsel to the applicant.

Building & Development Mortgages Canada

Building & Development Mortgages Canada (BDMC), a Richmond Hill, Ontario-based administrator of syndicated mortgage loans, had a trustee appointed over its assets following an application made by the Superintendent of Financial Services. Prior to February 1, 2018, BDMC brokered and administered investments in syndicated mortgage loans principally relating to development projects in which Fortress Real Capital or Fortress Real Developments were involved. Over $600.0MM has been invested in BDMC by over 11,000 individual investors, many of whom have invested significant portions of their savings in these loans. Following numerous complaints from investors regarding BDMC's activities and the performance of their investments, the Financial Services Commission of Ontario launched an investigation that ultimately led to a settlement agreement on January 31 under which FAAN Mortgage Administrators (FAAN) was appointed as the arm's length, independent manager of BDMC's business. FAAN has advised that BDMC has been struggling to make a number of important payments, including payroll, rent, and payments due under its administration agreement. Additionally, on April 13, the RCMP executed search warrants at BDMC's offices. For these and certain other reasons, FAAN determined that it was not prepared to continue to act without court protection and direction, as required. The Court has now formally appointed FAAN as trustee. Counsel is Aird & Berlis for the the Superintendent of Financial Services and Osler for the trustee.

4 Birchmount Road

4 Birchmount Road, a vacant, detached two-storey home in Toronto, Ontario, was placed in receivership on April 13 on application by B & M Handelman Investments et al., owed approximately $900.0M. The funds were initially advanced to Christine Drotos and secured by a second mortgage against the property. When Drotos failed to repay the funds when the mortgage matured, Ara Missaghi offered to purchase the applicants' loan. This transaction was never completed. Instead Missaghi made partial payments on the mortgage. In addition, Missaghi represented that he was continuing to service the first mortgage on the property, which was owing to Pillar Capital Corporation (not to be confused with Pillar Capital Corp. out of Calgary, Alberta), a lender which appears to be owned or controlled by Missaghi. A recent mortgage statement provided to the applicants by Pillar, however, did not reflect any credit for the interest payments which Missaghi allegedly made. Concerned that Missaghi may have inflated the amounts claimed to be due and owing pursuant to the first mortgage in an attempt to prejudice their recovery under the second mortgage, the applicants' moved to appoint a receiver to sort through the various encumbrances registered against the property. Rosen Goldberg was appointed receiver. Dickinson Wright is counsel for the applicants.

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.