2782736 Ontario Inc., Receivership

2782736 Ontario Inc., which owns property located at 20 Fairview Road, Barrie, Ontario, was placed into receivership on May 9 on application by Crestview Investment Corporation, owed approximately $11.3 million on a vendor take back mortgage.

Prior to the company’s purchase of the the property, it was subject to a lease with Innvest Nominee V Ltd. as tenant, which operated a “Holiday Inn” hotel on the property. The vendor take back mortgage was initially set to mature in November 2023 but was extended on several occasions.

The parties also entered into a forbearance agreement which expired without repayment. Ultimately, they agreed to a receivership that would be triggered if: (1) the company failed to pay $400,000 to Crestview by March 27; (2) the company failed to pay an additional $100,000 by April 4; and (3) the company failed to repay the entirety of the outstanding indebtedness by May 8. It appears the first two payments were made but not the third.

KSV is the receiver.

Counsel is Dale & Lessman for Crestview, Paliare Roland for the company, Chaitons for Zaherali Visram, and Humber Bay Law for Neem Tree Investments Inc.