1111 Clarkson Road Project Placed Into Receivership After Two-Year CCAA Fails

PwC was appointed receiver over the stalled 1111 Clarkson Road development in Mississauga on September 8, 2026, after Justice Cavanagh sided with former construction manager Kenaidan Contracting Ltd. in a contest over who should take control of the project. Kenaidan, which holds two perfected construction lien claims totalling more than $25 million, sought PwC's appointment, while the project's DIP lender, 1000861289 Ontario Inc., separately moved to install Crowe Soberman. The competing applications followed more than two years of unsuccessful restructuring efforts under the CCAA.

A stalking horse deal that never closed

Clarkson Road Developments GP Inc., Clarkson Road Holdings Inc. and 2813427 Ontario Inc. obtained CCAA protection in May 2024 after defaulting on a $20 million vendor take-back mortgage held by CS Capital Limited. Before filing, the developers had contacted more than 60 potential investors or purchasers but failed to find a third party willing to satisfy the mortgage and prior-ranking claims.

One of the project's principals subsequently incorporated 1000861289 Ontario to act as a stalking horse bidder. Its investment agreement was approved as the stalking horse for a court-supervised SISP and ultimately became the only qualified bid received.

The transaction stalled after construction lien claimants successfully challenged the priority of CS Capital's mortgage, forcing the parties to restructure the deal. In 2025, the investor, Kenaidan and the developers negotiated an amended transaction under which the investor would pay or assume claims ranking ahead of the construction liens and contribute $22 million in cash at closing.

The court approved the revised transaction in September 2025, but it still depended on the investor securing exit financing. The project's DIP facility was increased from $5.875 million to $7.2 million to fund the companies while they worked toward closing. By February 2026, the required financing had not been secured and the transaction failed to close.

Two creditors seek two different receivers

With no completed transaction and further DIP funding unavailable, the CCAA stay expired on February 28 and was not renewed. The DIP lender subsequently declared defaults and delivered a formal demand in August before moving to appoint Crowe as receiver.

Kenaidan pursued its own receivership application seeking PwC instead. The competing applications left the court to determine who should take control of the partially completed project after the lengthy debtor-led restructuring had failed.

Justice Cavanagh ultimately chose PwC, finding that the CCAA proceedings had failed to produce a viable transaction and that a neutral third party was needed to lead the next stage. He concluded that PwC was best positioned for the role because of its familiarity with the project, previous marketing efforts, stakeholders and outstanding issues from its time as CCAA monitor.

PwC is the receiver and previously served as CCAA monitor. Counsel is Blakes for the receiver, Norton Rose Fulbright for Kenaidan, Miller Thomson for 1000861289 and McCarthy Tétrault for the debtors.