Ontario builder, property company placed in receivership over RBC debt

Diamond Luxury Builders Inc. and 1000704900 Ontario Inc. were placed into receivership on June 26, 2026, on application by Royal Bank of Canada, owed approximately $2.7 million, after months of payment and reporting defaults.

Diamond Luxury, incorporated in 2020, operates a builder business from 1534 Dundas Street West in Mississauga, which is owned by 1000704900 Ontario Inc. Both companies are directed by Imran Ahmed. RBC provided Diamond Luxury with a $1.5 million revolving demand facility and $50,000 business credit card, while the numbered company received a $1.125 million non-revolving term loan secured in part by a $1.5 million collateral mortgage over the property. Ahmed and the companies also provided guarantees.

RBC issued demands and enforcement notices on February 26, 2026. The defaults later identified to the court included approximately ten months of failures to provide required financial reports, an approximately $29,000 business credit card balance, and broader difficulties keeping the loans current. No payments were made between March 17 and June 24, 2026. The application was adjourned several times to allow the debtors to address the defaults and arrange refinancing.

At the June 23 hearing, the companies sought another 30 days to refinance. Justice LeMay instead gave them until June 26 to pay accrued interest and produce firm refinancing sufficient to repay RBC. The interest was paid, but the financing letter provided for only a $1.125 million first mortgage, which required RBC to be paid out before registration and was not scheduled to close for several weeks. Justice LeMay concluded that the companies had not demonstrated a reasonable prospect of repayment and granted the receivership. He declined at that stage to enter judgment against Ahmed under his personal guarantees because recoveries from the corporate assets could reduce any shortfall.

Fuller Landau is the receiver. Counsel includes Lerners for RBC and Granville Cadogan for the corporate respondents.