Coromandel Cambie 59 BT Ltd. et al., Receivership

Coromandel Cambie 59 BT Ltd. et al., the legal and beneficial owners of certain lands located in New Westminster, British Columbia, were placed in receivership on November 7 on application by Desjardins Financial Security Life Assurance Company.

In 2018, Desjardins provided an $80 million mortgage loan facility to the companies. In October 2023, the court declared that the mortgage was in default and gave the companies until April 2024 to redeem the amount owing on the mortgage (approximately $23.4 million).

In March 2023, Jin-Ocean Mortgage Investment Corporation (which holds a second-ranking mortgage) was granted an order nisi with a six month redemption period.

Jin-Ocean obtained an order for conduct of sale in November 2023 and engaged Colliers to conduct a sales process in December 2023. This resulted in a $32 million purchase offer from a related party to Jin-Ocean, which the court approved in April 2024. However, the offer as structured would attract significant property transfer tax payable by the purchaser and result in a shortfall on Jin-Ocean’s debt. As a result, the purchaser wishes to structure the transaction as an RVO. It has agreed to act as a stalking horse in a sale process to be conducted by Deloitte as the receiver.

Counsel is DLA Piper for Desjardins, Lawson Lundell for the receiver and Koffman Kalef for the proposed purchaser.