Deloitte takes control of 1201-1215 Phillips Square Phase IV after loan default, unpaid taxes, and failed sale Efforts

Deloitte Restructuring Inc. has assumed control of 1201-1215 Phillips Square Phase IV after the Superior Court of Quebec granted a receivership order on 24 November 2025, authorizing the firm to take possession of the downtown Montreal redevelopment property, stabilize operations, and run a value-maximizing liquidation or sale process. The application was brought by Computershare Trust Company of Canada, acting as trustee and attorney in fact for ACM Advisors Ltd. on behalf of the ACM Commercial Mortgage Fund, which holds first ranking security. The Court accepted that ACM faced escalating risk as the borrower defaulted on its fully matured loan, fell behind on municipal taxes, and failed to produce any viable repayment path.

The project centres on a mixed-use redevelopment of the property at 482 to 488 Sainte Catherine Street West, identified as lot 1,340,603, owned by the limited partnership known as 1201-1215 Phillips Square Phase IV. Corporate registry filings describe the debtor as an investment and development entity, and its sponsor, Brivia Family Investments Inc., intervened as surety and acted as the primary contact with the lender. Brivia was also driving the redevelopment strategy and coordinating discussions with secured creditors.

ACM advanced a $21 million financing package in January 2022, supported by both immovable and movable hypothecs registered for $25.2 million. The loan matured in May 2025 without extension, and the debtor made no repayment of principal at maturity. Under the loan agreement, any extension required two months’ written notice and a fee. ACM accepted interest payments after maturity, but only to limit damages, and expressly maintained all rights. By 12 November 2025, the payout statement totaled $21,440,258.41, reflecting accrued interest, yield maintenance, legal fees, and other charges.

Liquidity issues were not limited to the matured facility. Neither 2024 nor 2025 property taxes had been paid, triggering a City of Montreal tax sale notice on 10 September 2025 with a scheduled sale date of 17 November 2025. Brivia informed ACM that the debtor could not pay the outstanding $178,540.32, forcing ACM to advance the amount to prevent the building from being auctioned. The lender also learned that Brivia was experiencing broader liquidity pressure across other projects, reinforcing concerns about the debtor’s financial stability. Attempts to sell the property produced no firm offers prior to September. A later offer on 17 November 2025 was insufficient to repay ACM and included conditions the lender rejected.

The Court concluded that the debtor was unable to manage its obligations or protect the value of the property. Deloitte is now authorized to take possession of the property, collect rents, secure and preserve the asset, manage ongoing operations, and retain agents or professionals as needed. BCF LLP represented the petitioner.