Hillview Park Condominium

Hillview Park Condominium, a 214-unit townhouse-style condo complex located in Fort McMurray, Alberta that is one of the biggest rebuilds after the May 2016 wildfire, was placed under administration on September 20 on application by the owners of the condo corporation. Homeowners were supposed to be back in their homes by February 2018, but significant delays on the rebuild arose. Builder Viceroy Construction was removed from the project and subsequently filed a lawsuit against the condo corporation, alleging its contract was wrongfully terminated. The condo corporation filed a counter lawsuit alleging that Viceroy was negligent in ensuring work was free from defects and completed on time. PwC, who was appointed administrator, will take charge of the reconstruction project, with duties to review and assess proposed payments, monitor the reconstruction budget and manage the litigation commenced by or against the condo corporation. Counsel is Field Law for the applicant, McLennan Ross for the administrator, Witten for TD, BMO, RBC and CIBC, Duncan Craig for Genworth and BNS, Lintott Law for Canada Guaranty Mortgage Insurance Company, Guardian Law for certain owners and BLG for CMHC.

1041951 Alberta (formerly Prestigious Properties)

1041951 Alberta (formerly Prestigious Properties), a Canmore, Alberta-based real estate investment company, filed for bankruptcy on July 30, listing $9.8MM in liabilities, including $4.0MM to 1536466 Alberta. EY is the bankruptcy trustee. Dentons is counsel to 1536466 Alberta.

Kolsy Homes

Kolsy Homes, a Saskatoon, Saskatchewan-based company that acquires and develops lands in Saskatchewan, along with Rivairo Capital Corporation, a related company, filed for protection under the CCAA on July 9. The sole asset of Rivairo is 5.4 acres of land in Airdrie, Alberta that has been subdivided out for the development of townhomes and condos (the "Rivairo Project"). Based on Rivairo's aggregate secured indebtedness of $9.4MM, the current value of the Rivairo Project, if sold in a forced-liquidation scenario, would be insufficient to pay all of the company's secured obligations that are due and owing. Moreover, the company currently does not have enough funds to pay any amount of the $3.6MM it owes to unsecured creditors. Similarly for Kolsy, the aggregate value of its assets - which is approximately $3.3MM - would be insufficient to pay its secured obligations as they become due. The only income that Kolsy receives is $7,600 in annual rent on the 143.6 acres of land that it owns in Corman Park. During the CCAA proceedings, KV Capital will be providing $600.0M in interim financing. Counsel is The W Law Group for the companies, MLT Aikins for The Bowra Group and Bishop & McKenzie for KV Capital.

2120 Dundas Holdings and several other related real estate holding companies

2120 Dundas Holdings and several other related real estate holding companies, were placed in receivership on June 19 on application by BDC. The companies own properties municipally known as 9160 Bayview Avenue, Richmond Hill Ontario (Bayview Medical Centre) and 2120 Dundas Street East, Mississauga, Ontario, from which a banquet hill by the name of Lviv Castle operates. In September, 2017, following an internal investigation, BDC confirmed that a number of the companies and their principals falsified documents and made material misrepresentations to BDC in connection with their loan applications. Additionally, the companies have allowed substantial property tax arrears to accrue on the properties. BDO was appointed receiver. Counsel is Chaitons for the applicant and Aird & Berlis for the receiver.


TheRedPin, a Toronto, Ontario-based real estate brokerage, was placed in receivership on June 14. Founded in 2010, the company was seeking to use technology to change the way consumers bought and sold real estate; an online platform consolidated real estate listings, including pre-construction listings, into a single map system for users to search, save and share listings, connect with real estate agents, and facilitate property purchases. Seeking additional capital to fuel growth but wanting to avoid a dilution of their equity, the company's shareholders turned to venture debt. A significant decline in sales in recent months has led to the company failing to meet the minimum rolling 12 month net deal revenue required by its lenders, who have demanded repayment. MNP was appointed receiver and was authorized to conduct a sale process for the company's assets. Chaitons is counsel for the applicant.

Textbook Ross Park, Textbook (774 Bronson Avenue) and McMurray Street Investments

Textbook Ross Park, Textbook (774 Bronson Avenue) and McMurray Street Investments, Vaughan, Ontario-based real estate companies, were placed in receivership on May 30 on application by Grant Thornton, the court-appointed trustee of several related entities that were used to raise monies from investors through syndicated mortgage investments. KSV Advisory was appointed receiver. Aird & Berlis is counsel to the applicants.

3291735 Nova Scotia Limited

3291735 Nova Scotia, a Halifax, Nova Scotia-based company whose principal asset is approximately 1.3 acres of real property located in Halifax, was placed in receivership on May 11 on application by First National Financial, a major secured creditor. The property was divided into six condominium lots, which have been listed for sale since June 2016 without success. The court appointed KSV Advisory as receiver and also approved a stalking horse sale process. Counsel is McInnes Cooper for the stalking horse purchaser, Cox & Palmer for the receiver and Burchells for First National Financial.

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.