Creditor-led CCAA filing targets bulk sale of 65 Vic Towns units

1682 Victoria Park Avenue Inc., the developer of The Vic Towns condominium project in Toronto, obtained protection under the Companies’ Creditors Arrangement Act on July 17, 2026, on application by fourth-ranking secured creditor Findev Lending Inc. Justice Myers appointed Albert Gelman Inc. as monitor, granted a stay through July 24 and approved a $100,000 administration charge ranking behind mortgages held by Windsor Family Credit Union Limited, Firm Capital Mortgage Fund Inc. and Westmount Guarantee Services Inc. Findev did not seek an interim financing charge and will instead fund the process through protective advances.

Justice Myers described the debtor as insolvent and, for practical purposes, out of business, but noted that it still owns 65 completed townhouses requiring realization. The Court found that a stay was needed to allow Findev to develop an orderly procedure for maximizing recoveries, highlighting the lender’s decision to keep the senior mortgagees current rather than seek broad priming charges. The Court did not approve the proposed sale process or transaction structure at the initial hearing, leaving those matters for subsequent hearings.

The debtor was incorporated in Ontario on August 12, 2013, and is controlled by sole director and officer Paul Goldfischer, also known as Zvi Arie Goldfischer. It developed The Vic Towns, a 147-townhouse condominium project constructed between 1648 and 1682 Victoria Park Avenue, south of Lawrence Avenue. Of the project’s 147 units, 82 have been sold and 65 remain registered to the debtor. The completed development is otherwise operated through its condominium corporation.

The debtor’s management has largely ceased participating in the project’s operations. Findev and related builder Plazacorp Investments Limited have instead funded work required to complete the development, address deficiencies in the 82 sold townhouses, respond to Tarion warranty claims, finish the unsold units and pay property taxes and mortgage interest. Plazacorp advanced approximately $7.25 million for those purposes beginning in January 2025. The proceeds from the 82 completed sales were applied against the Windsor mortgage.

The project’s financial problems arose from the downturn in the Toronto and Ontario housing markets. The debtor has not closed a unit sale since March 2026 and has been unable to generate sufficient revenue from the remaining inventory to meet its obligations as they became due. It could not fund its own CCAA application and had relied on Findev and Plazacorp for approximately 18 months to complete construction and pay priority obligations.

As of June 30, the debtor reported approximately $75.68 million owing to 5 mortgage lenders. Windsor was owed approximately $24.33 million, Firm Capital $9 million, Westmount $1 million, Findev $24.35 million and Yonge-Abell Mortgage Partners Limited $17 million. CRA had separately issued a June 9 requirement to pay for approximately $5.52 million of unremitted HST. Findev said it expects a shortfall exceeding $10 million on its fourth-ranking debt.

The financing structure developed over several years. Findev’s predecessor initially committed $1.04 million of mezzanine financing in November 2016 at an annual interest rate of 20%. The registered consideration was increased several times, reaching $10 million in November 2020. Windsor later obtained a first-ranking $70 million registered charge, Firm Capital obtained a second-ranking $15 million charge, Westmount holds the third-ranking charge, Findev ranks fourth and Yonge-Abell ranks fifth. The registered amounts do not represent the balances outstanding when the CCAA case commenced.

The Windsor loan matured on or about June 30, 2026. Findev and the debtor negotiated arrangements under which Windsor and Firm Capital agreed to forbear for 90 days from the initial order, provided they remain current. Westmount also supported marketing the units through the CCAA process. The stay does not apply to those 3 lenders, which were designated as unaffected secured creditors under the initial order.

Findev had already issued a demand and notice of intention to enforce security on June 12, seeking payment of $22.8 million, plus accrued interest, costs and $11,300 in legal fees, by June 22. The debtor waived the statutory notice period, consented to immediate enforcement and also consented to the CCAA relief. Findev subsequently calculated its debt at approximately $24.35 million as of June 30.

Findev intends to return to Court with a sale and investment solicitation process for an en bloc sale of the 65 unsold units. The proposed process will include a stalking horse credit bid from Findev or its nominee, creating a baseline against which other bids can be assessed. If that bid is selected, Findev says financing has been arranged to repay Windsor, Firm Capital and Westmount in full within 90 days.

The contemplated transaction would use a reverse vesting order through which Findev or its nominee would acquire the shares of the debtor while specified liabilities are transferred out. Findev says the structure would preserve the debtor’s Home Construction Regulatory Authority licences and builder status, avoid provincial and municipal land transfer tax because ownership of the units would not change, preserve tax losses and allow qualifying purchasers of units priced below $1 million to claim new-housing rebates of up to 13%. The monitor characterized the concept as a plausible method of unlocking value but had not reviewed a finalized stalking horse agreement when it filed its pre-filing report. Justice Myers expressly deferred any approval of the process or transaction.

Findev is financing the proceedings without a court-ordered interim financing charge. The 15-week forecast through October 19 assumes that none of the unsold units will be sold during the period and that Findev will advance approximately $922,000 to cover all projected disbursements. Those expenditures comprise $735,000 of secured-lender interest, approximately $157,000 of operating expenses and $30,000 of warranty and deficiency costs. The forecast shows no opening cash, no net cash flow and no ending cash because each disbursement is matched by a Findev advance.

Albert Gelman is the monitor. Counsel includes Paliare Roland for the monitor, Manis Law for Findev, Fogler Rubinoff for Windsor, and TGF for Firm Capital.