Applewood Marketplace Inc.

Applewood Marketplace Inc., the owner and developer of a real estate development project known as the Applewood Project, located in London Ontario, was placed in receivership on August 3, on application by MarshallZehr Group Inc., owed approximately $58 million pursuant to four credit facilities. Part of the property was being developed as apartment buildings with commercial space on the ground floor, which were expected to be completed by year-end but for the company's financial difficulties. This phase of the Project is approximately 75% complete, and the company ceased its construction operations at the site on June 1. In contravention of the credit facilities, 46 construction liens have been registered on the property in the aggregate amount of over $8 million. To date, the company has not taken any steps to vacate the liens. In addition, the company failed to pay monthly interest on three of the four credit facilities and to repay three of the four credit facilities on their maturity dates. EY was appointed receiver. Counsel is Miller Thomson for MarshallZehr and Siskinds for the company.