King David property placed into receivership over $4.5 million mortgage debt

King David Inc. was placed into a limited receivership on July 9, 2026, on application by first-ranking secured lender CC2 (100) GP Inc., which was owed approximately $4.5 million under a matured mortgage facility. Justice Myers appointed AlixPartners Restructuring, Inc. as receiver over the company’s property at 100 Cathedral High Street in Markham and related personal property and proceeds. The order does not extend to King David’s other lands already subject to a separate receivership or to the neighbouring property at 101 Cathedral High Street.

The receivership covers a 1.48-acre parcel of vacant land within the Cathedraltown development. The site is approved for a mid-rise residential condominium building. CC2 acquired its first-ranking mortgage and related security by assignment on April 21, 2026. The security originated under a September 18, 2023 commitment from HF Markham (CC2) LP for a $5 million, 13-month term facility. It included a first charge over the Markham land, a site-specific general security agreement covering related personal property and a guarantee dated October 17, 2023.

The facility carried interest at the greater of 12.25% annually or CIBC’s prime rate plus 5.05% for its first 12 months. The rate then increased to the greater of 20.25% or prime plus 13.05%. Both the mortgage and general security agreement included contractual rights to appoint a receiver following default.

The loan matured on December 1, 2024 and was not repaid. The original lender demanded $5,139,127 on January 16, 2025 and delivered a notice of intention to enforce security. A February 4, 2025 forbearance agreement acknowledged indebtedness of approximately $5.18 million as of February 1 and deferred enforcement through December 1, 2025. King David acknowledged the amount owing, their repayment obligations and the validity of the lender’s security.

The forbearance expired without repayment. By April 30, 2026, the balance had declined to approximately $4.5 million, excluding legal fees and disbursements, reflecting principal of $4.05 million plus accrued interest, default fees and estimated planning costs. Interest continued to accrue after that date.

The Markham property is also subject to a second charge with a registered principal amount of $3.5 million held by Romandale Farms Limited. That mortgage was initially registered in October 2023, transferred to AFC Mortgage Administration Inc. and Brexit Holdings Inc., and transferred back to Romandale in January 2025.

King David owns additional Cathedraltown properties across the street from the 100 Cathedral High Street parcel. Those lands were placed into a separate receivership in December 2023, with TDB appointed receiver. Justice Steele approved a stalking horse sale process for those properties in September 2025, and a sale was subsequently approved in April 2026. The July order expressly excludes those assets from AlixPartners’ mandate, avoiding overlap between the 2 receiverships.

AlixPartners is the receiver. Counsel includes Dickinson Wright for CC2 and Cassels for Vector Financial Services, whose related property at 101 Cathedral High Street is excluded from the receivership.