253 Queen Street Inc. (“253 Queen”), which owns real property in Toronto, Ontario, was placed into receivership on February 8, on application by Homedale-Eagle Corporation, owed approximately $10.4 million in connection with a debtor takeback mortgage.

The company has been pursuing a plan to develop the property for a multiphase mixed-use development consisting of 3 residential towers. The mortgage has been in default since November 2, 2023, when the company failed to make a $400 thousand interest payment. The property is also subject to a $2 million subordinate mortgage in favour of Sky Mortgage Corporation, which is also in default.

Rosen Goldberg is the receiver.

Counsel is Dickinson Wright for Homedale-Eagle Corporation and Meretsky Law for Sky Mortgage Corporation.

By: Dina Milivojevic