11475584 Canada Inc., Receivership

11475584 Canada Inc., a Montréal, Québec-based company, was placed in receivership on November 20 on application by KingSett Mortgage Corporation, owed approximately $11.9 million.

The main, if not sole, asset of the company is comprised of 16 condo units which form part of a 20-unit condominium project currently in construction (four of which have already been sold), and located at 5410-5420 Papineau Avenue, Montréal.

On June 13, 2023, following numerous defaults by the company under the credit agreement, the parties entered into a forbearance agreement, but the company subsequently defaulted on this agreement as well. In addition, litigation has been brought by the company against the former general contractor, which KingSett claims prompted the general contractor to retaliate by registering a hypothec against the property.

Richter was appointed receiver.

The Court also issued approval and vesting orders in relation to each of the 16 units in order to reduce costs and subsequent approval hearings. The orders include a minimum price for each unit and come into effect on the issuance of a receiver’s certificate.

Counsel is McCarthy Tétrault for KingSett.