55 Town Centre Holdings Ltd., the owner of an office building in Scarborough, Ontario, and Genetic Properties Inc., which owns a vacant industrial property in Mississauga, Ontario, were placed into receivership on November 6, on application by the Bank of Nova Scotia (“BNS”), owed approximately $31 million. The companies, which are both controlled by Cesare Fazari, have defaulted on their obligations to BNS by obtaining secondary financing and are behind on their property tax payments. The receivership application was initially adjourned to allow the companies to close a transaction which would have seen BNS paid in full. However, the transactions failed to close and Grant Thornton was appointed as receiver. Counsel is McMillan for BNS, Harrison Pensa for the receiver, and Yigal Rifkind for Cesare Fazari.

By: Dina Milivojevic