Ashcroft Homes - Eastboro Inc., Receivership

Ashcroft Homes - Eastboro Inc. (“Eastboro”), a housing development project approved to construct approximately 2,000 homes in a subdivision located in Ottawa East, was placed into receivership on October 17 on application by RBC, owed approximately $80 million.

Phase 2 of the project, approved for 980 homes, has fully serviced lots. However, the City of Ottawa was not prepared to allow Eastboro to register the subdivision until it completes a storm sewer system. Eastboro did not have funds to complete the storm sewer system and the construction of homes came to a standstill as a result.

To date, there are approximately 25 homes at various stages of completion, along with 83 purchasers who have placed deposits on a specified lot.

MNP is the receiver.

Counsel is McMillan for RBC and Dentons for the receiver.