Evergrande-linked Montebello resort placed in receivership

Caisse Desjardins de Brossard secured the appointment of PricewaterhouseCoopers Inc. as receiver over Millennium Golden Jiachen Hotel Holdings Ltd. and 4345118 Canada Inc., which own the landmark Fairmont Le Château Montebello resort, on 3 November 2025.

Fairmont Le Chateau Montebello is a 211 room, four season resort located on rue Notre Dame in Montebello operated by Fairmont Hotels Inc. under an existing management agreement. The financial difficulties stem from Millennium’s failure to repay its obligations at the end of the term under a 2018 financing arrangement with Desjardins that was later amended and supported by both immovable and movable hypothecs. Desjardins issued a demand for payment and a section 244 notice on 3 June 2025 after citing multiple defaults, including non-payment at maturity and a material adverse change linked to the financial distress of the group’s indirect shareholder, the delisted China Evergrande Group.

As of 18 September 2025, the secured indebtedness totaled approximately $10.8 million, supported by a $13.5 million financing facility and a $3 million term deposit subject to a separate security agreement. PwC’s initial inventory identifies additional liabilities, including related party loans of $47.9 million and operational payables exceeding $5 million.

Under the order, PwC is authorized to manage the hotel’s operations, coordinate with the Fairmont operator under a non-disturbance agreement, and implement a sale process for the property.

Counsel is Gowling WLG for Desjardins.