LJM Development (Hamilton) seeks CCAA protection to complete condo project

LJM Developments (Hamilton) Inc., a single-purpose real estate development company wholly owned by LJM Group Inc., obtained an initial order under the Companies’ Creditors Arrangement Act on February 10, 2026, commencing restructuring proceedings in respect of its Hamilton condominium project.

The company was established to develop LJM Tower, Urban Living in the City, a 313-unit residential condominium located at 2782 Barton Street East in Hamilton. Development began in December 2016. Of 301 pre sale agreements entered into, 258 transactions closed. 43 purchasers defaulted and failed to close.

The applicant now owns 55 unsold residential units, together with unsold parking and storage units, which comprise substantially all of its remaining assets.

The company attributes its insolvency to a sharp downturn in the Hamilton condominium market, which impaired closings and liquidity. Claims against the company total approximately $30.7 million, including $5.7 million owed to construction trades, $7.7 million in development charges owing to the City of Hamilton, and $12.5 million to Canada Revenue Agency in respect of HST.

Westmount Guarantee Services Inc. provided deposit insurance and a Tarion bond with a face value of $6,260,000. Westmount holds a registered mortgage in the principal amount of $30,000,000 against the unsold units and security over approximately $1,300,000 in pre-sale deposits.

At the comeback hearing, the company intends to seek approval of a sale process for the 55 unsold units, including authority to retain EXP Realty Inc., sell units above a confidential target price, and obtain approval and vesting orders without further court attendance for qualifying transactions. RCM Capital Syndication SPV III LP is providing a $2.5 million DIP loan.

Schwartz Levitsky Feldman Inc. is the monitor. Counsel is Paliare Roland Rosenberg Rothstein LLP for the applicant, Aird & Berlis LLP for the monitor, and Cassels Brock & Blackwell LLP for RCM Capital Management Ltd.