2521311 Ontario Inc. o/a Towns of Thornbury, Interim Receivership

2521311 Ontario Inc. o/a Towns of Thornbury, which is currently developing a 23-unit townhome development known as Towns of Thornbury, was placed in interim receivership on December 19 on application by Foremost Mortgage Holding Corporation. In July 2020, Foremost Mortgage provided a loan of approximately $8.8 million. The company failed to repay the loan by the maturity date of October 1, 2023. The project was supposed to be completed in January 2022, but remains only partially built, in a state of disrepair, and exposed to the elements. Foremost Mortgage sought the appointment of a receiver to complete the winterization work in the most efficient manner possible and, thereafter, to carry out a sales process for the property. If Towns of Thornbury fails to provide an unconditional commitment letter to fully repay First Mortgage and the interim receiver’s fees and expenses by January 31, a full receivership will commence. KSV was appointed interim receiver. Counsel is Paliare Roland for Foremost Mortgage and DLA Piper for the interim receiver.

By: Dina Milivojevic