Elderwood Holdings Inc., Elderwood Townhomes Inc., Elderwood Townhomes II Inc. and 2633501 Ontario Inc., Toronto, Ontario-based real estate companies, were placed into receivership on February 27 on application by Trez Capital Limited Partnership, owed approximately $10.3 million.

Trez Capital provided a loan to the companies to fund the construction of a six-storey residential building with 62 strata residential units and 13 rental apartments. The companies have defaulted on the loan, including by failing to make scheduled interest payments and failing to repay the loan on maturity.

In addition, the companies have yet to obtain certain rezoning approvals required for the project to be six storeys tall. Without these approvals, Trez Capital is concerned the companies cannot proceed with pre-selling the units and will not satisfy certain conditions precedent required to procure sufficient refinancing to repay the indebtedness.

KSV is the receiver.

Counsel is Bennett Jones for Trez Capital and Bresver Grossman Chapman & Habas for the companies.