Canadian Motor Freight Ltd. and 2568403 Ontario Inc., Receivership

Canadian Motor Freight Ltd. (“CMF”), a Mississauga, Ontario-based logistics company and 2568403 Ontario Inc., the registered owner of the property known municipally as 400 Brunel Road, Mississauga, Ontario, were placed into receivership on November 15 on application by CWB, owed over $20 million.

The companies were previously placed into interim receivership on October 8.

Since the appointment of the interim receiver, the companies have reportedly provided CWB with materially false financial information, CMF has posted consistent losses, failed to make payments to CWB and its equipment financiers for several months, accumulating approximately $1.7 million in arrears, and factored numerous accounts receivable to REV Capital without the knowledge or consent of CWB.

In addition, the City of Mississauga was already in the process of commencing tax sale proceedings in respect of the property when the interim receiver was appointed.

EY is the receiver.

Counsel is Chaitons for CWB, Davies for the receiver, Nanda & Associates for the companies, Harrison Pensa for RBC and BLG for REV Capital.