OCM Auto Financing Group Ltd. and OCM Auto Financing Fund Ltd. were placed into receivership on September 21, 2026, on application by National Bank of Canada, after a failed refinancing and a dispute over collections from OCM’s auto loan portfolio.
The Ottawa-based companies provide sub-prime and secondary auto lending and third-party loan servicing across Canada. The business was initially financed through private-investor debentures before entering into a financing arrangement with CWB Maxium Financial Inc. in 2023. That facility reached $60 million before evolving into a master purchase and servicing agreement under which CWB funded auto loans and purchased specified receivables. National Bank later succeeded to CWB’s rights.
By late 2025, National Bank wanted to exit the relationship. A December 31, 2025 amending agreement gave OCM until May 29, 2026 to refinance and required a binding third-party capital commitment by April 17. National Bank extended that commitment deadline twice, first to May 29 and then to June 30. OCM pursued refinancing with Encina Lender Finance, but acknowledged in late June that the transaction would not close and retained Sinclair Range Inc. as chief restructuring officer to seek alternatives. On June 30, OCM advised National Bank that it could not repay the indebtedness.
The liquidity crunch then affected OCM’s servicing obligations. National Bank issued an approximately $906,557 collections invoice on July 1 and terminated the servicing arrangement on July 3. By July 6, the blocked account used for collections had a negative balance of approximately $11,217, compared with approximately $809,698 of deposits in May and $769,035 in June. National Bank demanded payment and issued a section 244 notice on July 8, while designating Go To Loans Inc. as replacement servicer.
OCM acknowledged transferring $63,000 from the blocked account and said it had historically used collections to fund ordinary operating expenses before remitting amounts due to the bank at month-end. There were also approximately $420,000 of transactions between June 22 and July 6, including professional fees and payments to shareholders, an investor and a non-arm’s length party. OCM admitted that some shareholder payments were inappropriate and said they had been reimbursed.
KPMG was appointed interim receiver on July 23. Its review identified approximately 3,158 loans with a net present value of $47.2 million, including 1,526 loans worth $19.9 million in National Bank’s portfolio and 1,622 loans worth $27.3 million in OCM’s portfolio. The reserve account held approximately $4.8 million as of July 31. KPMG also reported that OCM appeared to have understated the number of contracts that met the definition of defaulted contracts under the servicing agreement.
On September 21, KPMG was appointed as full receiver and manager over all of the companies’ assets. The receivership order gives KPMG authority to operate or wind down the business, collect receivables, market and sell assets and transition servicing to the replacement servicer. The receiver’s stated plan is to evaluate realization strategies for the property and complete that servicing transition.
As of the receivership, National Bank was owed approximately $14.9 million. Computershare Trust Company of Canada, as trustee for debenture holders, represented approximately $49.9 million of additional debt. There is also nearly $1 million in unsecured claims.
KPMG is the receiver. Counsel includes Gowling WLG for National Bank, Fasken for the receiver and Conway Baxter Wilson for OCM.
