33 Yorkville Residences ("33 Yorkville"), The Clover on Yonge ("Clover"), and 480 Yonge Street ("Halo")

33 Yorkville Residences ("33 Yorkville"), The Clover on Yonge ("Clover"), and 480 Yonge Street ("Halo") - three large downtown Toronto, Ontario luxury condo projects by the Cresford Group - were placed in receivership on March 27. Investors bcIMC Construction Fund and Otéra Capital, owed approximately $163.2 million, filed the receivership application for 33 Yorkville, while bcIMC Construction Fund and bcIMC Specialty Fund, owed approximately $214.9 million, filed the application for Clover and Halo. After the applicants became aware of allegations of financial mismanagement and accounting irregularities at the Cresford Group, including an allegation that the developer kept separate ledgers where one set was shown to lenders and another set included additional costs, they retained PwC to review the 33 Yorkville project. PwC later advised that it had uncovered evidence of inappropriate project contracting and accounting, transfer of costs between condo projects as cost overruns began to occur, and unusual credits on condo sales. As a result of this review and the fact that the Clover and Halo projects ran significantly over their approved budgets, the applicants concluded that Clover and Halo had defaulted on their obligations under the construction financing. PwC was appointed receiver. Counsel is Torys for bcIMC Construction Fund and bcIMC Specialty Fund, Norton Rose Fulbright for Otéra Capital, McCarthy Tétrault for the receiver and Aird & Berlis for the companies.