98 James South (2022) Inc. and 98 James South (2022) Limited Partnership, Receivership

98 James South (2022) Inc. and 98 James South (2022) Limited Partnership, which own real property intended for a condominium development in Hamilton, Ontario, were placed in receivership on August 14 on application by Marshallzehr Group Inc., owed approximately $12.3 million.

98 James Street South purchased the property from Hue Developments (which itself purchased the property out of a prior insolvency proceeding) in 2022. The purchase was funded by the Marshallzehr loan and a vendor takeback mortgage from Hue Developments.

Since 98 James South acquired the property, it has remained at the site plan approval stage. The company has defaulted on the loan from Marshallzehr, including by failing to make interest payments when due. The loan remains outstanding despite demand for repayment.

KSV is the receiver.

Counsel is Chaitons for Marshallzehr.