2465 Brock Rd Development Inc., Receivership

2465 Brock Rd Development Inc., which owns property located at 2465 Brock Road, Pickering, Ontario intended for a proposed 17 & 17-storey mixed-use condo & retail development, was placed into receivership on March 25 on application by Meridian Credit Union, owed approximately $14 million.

In June 2023, Meridian provided a loan to the company to allow it to pay out two existing mortgages on the property. The company defaulted on the loan in June 2024 by, among other things, failing to repay the loan on maturity.

Meridian prepared a draft forbearance agreement in September 2024, but the company refused to sign it, instead insisting it was working on a deal with a separate company for a joint venture that would close by the end of October 2024 and allow it to repay the loan. The company has provided a “final draft” of the joint venture deal, which is not indicative of when, if ever, the deal will close. In addition, the company is not even a party to the joint venture deal.

msi Spergel Inc. is the receiver.

Counsel is Spetter Zeitz Klaiman for Meridian, Simpson Wigle for the receiver and Forrester Law for the company.