Craig Developments Inc., Receivership

Craig Developments Inc., the owner of a real estate development project in Huntsville, Ontario, was placed in receivership on December 3 on application by First Source Financial Management Inc., owed approximately $6.3 million.

The project was to consist of 16 townhouses and five three-storey apartment buildings. Construction on the project has stalled, with the townhouse units partially complete, but construction on the three-storey apartment buildings has not yet commenced.

First Source made two loans to Craig Developments — a servicing loan and a construction loan. The loans were originally to mature on December 1, 2023, but were extended twice. The final maturity date was September 8, 2024. The loans matured and were not repaid, and the company has been unable to refinance the loans. All interest payments ceased in September 2024.

TDB Restructuring is the receiver.

Counsel is RAR Litigation for First Source, Chaitons for Craig Developments, DLA Piper for Archibald Builders Group Inc. (lien claimant) and SV Law for 1001015209 Ontario (second mortgagee).