Cameron Stephens secures partial receivership over Mansouri Group entities

Cameron Stephens Mortgage Capital Ltd. has obtained a receivership order over four companies within the Mansouri Group following a fast moving Commercial List hearing that saw some entities consent while others signalled their intent to fight. Justice Conway appointed KSV Restructuring Inc. as receiver on November 20 over 1351637 Ontario Limited, Minthollow Estates Inc., Whitby Meadows Inc., and Casewood Holdings Inc., after each of these companies accepted that the lender was entitled to enforce its security and requested that the order issue on consent. Brooklin Olde Towne Inc. and Twinview Developments Inc. took the opposite position and will return to court on December 11 for a contested hearing.

The four consenting entities each own or support large-scale residential development projects in Whitby and Oshawa, financed through an aggregate of $79.18 million in advances provided by Cameron Stephens. These projects include the 17.5 acre Garden Street Project, the 4.20 acre Folkstone Towns Project, the 14.52 acre Whitby Meadows Project, and the Brooklin and Mamone Towns Project. The lender’s evidence describes a common pattern of stalled approvals, failed sale efforts, eroded interest reserves, multiple NSF events, missed monthly payments, and unsuccessful refinancing attempts that left all facilities in default. By mid October 2025, the combined indebtedness totalled $45.81 million across the four active loan files.

The default history spans repeated attempts by the Mansouri Group to monetize land positions or secure take out financing. Proposed sales of the Mamone Towns site at $7.2 million and $4.6 million failed to close. A conditional vendor take-back structure surfaced in July 2025, but the borrowers could not complete required planning work or satisfy municipal conditions. A separate sale to Sunny Communities that was expected to fund a partial paydown and create an 18-month interest reserve also collapsed in October. Similar challenges appeared on the Garden Street Project, where refinancing negotiations with DUCA Credit Union stalled after Tarion-related issues and ongoing arrears prevented a closing.

As liquidity deteriorated, interest reserves declined to zero across multiple facilities. The lender issued s. 244 notices under the Bankruptcy and Insolvency Act between October 14 and November 6, followed shortly by NOI filings from the debtors and related guarantors. The debtors sought to maintain the NOI process, but the lender argued that extensions would only increase costs while allowing the value of the underlying security to deteriorate further. The consent receivership for four entities reflects the debtors’ acknowledgment that no viable refinancing, equity injection, or sale process was available.

Justice Conway accepted the parties’ agreement on the four entities and granted a standard form receivership order appointing KSV as receiver. For Brooklin and Twinview, the Court determined that a contested hearing was required to address the lender’s request for immediate enforcement and the borrowers’ opposition. The Court scheduled that hearing for December 11 and left the status of those companies unchanged until then.

KSV’s mandate over the four entities includes stabilizing the properties, assessing carrying costs, preserving site value, and preparing for an orderly sale process. The receivership order authorizes KSV to take possession of all assets, obtain project information, engage consultants, and advance any urgent steps needed to secure the sites. The remaining entities will continue under their NOI protections until the December hearing.

Cameron Stephens is represented by Lenczner Slaght LLP. KSV Restructuring Inc. serves as receiver, represented by Goodmans. KPMG Inc. is the proposal trustee for the NOI estates and is represented by Stikeman Elliott LLP. Osler is on for the companies, and Chaitons represents DUCA.