Receiver appointed over Ortino landscaping, excavation group

Adriel Ortino Corp., ADD Equipment Corp., Aden Disposal Corp., AE3 Excavating Corp., AEON Landscaping Corp., All Seasons Gardening & Maintenance Ltd., Anthony’s Excavating and Grading Ltd., HC & C Contracting Inc. and Shilson Excavation & Trucking Inc. (collectively, the “Ortino Group”), a group of largely inactive companies which historically operated a landscaping, excavation and grading business in Ontario, were placed into receivership on May 21, 2026, on application by Bank of Montreal, owed approximately $18.5 million.

BMO’s application followed a deterioration that began after the borrowers’ former bookkeepers abruptly left en masse around October 2023. The borrowers later came to believe the former bookkeepers had misappropriated significant contract revenues through misleading bookkeeping practices and fake invoices. The Court also noted that unbilled receivables were not invoiced or collected, while the borrowers were overcharged for amounts properly due to contractors, suppliers and other third parties.

The financial issues then moved into covenant and reporting defaults. Through the latter half of 2024, the borrowers breached reporting requirements under BMO’s term sheet. BMO refrained from making demand while the borrowers assessed the alleged misappropriation scheme, even though the borrowing base had been significantly overstated and BMO’s collateral was insufficient to secure the indebtedness. By December 2024, certain loans were in overdraft, which BMO also tolerated.

Defaults continued in 2025. In January 2025, the borrowers exceeded the maximum total funded debt to EBITA ratio under the term sheet, leading BMO to deliver a notice of covenant breach and reservation of rights. In February 2025, BMO began receiving garnishment notices and requirements to pay relating to certain borrowers from CRA and other third-party creditors. By May 2025, the borrowers had again breached the term sheet by failing to deliver audited annual consolidated financial statements, quarterly financial statements and monthly borrowing base certificates.

BMO delivered demand letters on May 22, 2025, requiring repayment by June 2, 2025, and commenced the receivership application on June 17, 2025. The receivership was delayed by two forbearance agreements. The first was entered into on September 4, 2025. The second, dated February 2, 2026, extended forbearance until May 31, 2026 and was intended to give the borrowers time to market and sell equipment. Justice Cavanagh found that little progress was made.

The immediate trigger for the return of the receivership application was a liquidity shortfall under the second forbearance agreement in April 2026. BMO notified the Ortino Group of the $60,000 shortfall, but the funds were not advanced within five business days as required. As a result, the second forbearance agreement terminated by its terms.

Justice Cavanagh granted the order after finding that the borrowers had breached their credit arrangements, failed to repay following demand, ceased meaningful operations and were no longer booking new business. Given the lack of operations, BMO’s recovery expected to turn heavily on the group’s landscaping, excavating and ancillary construction equipment.

KSV is the receiver. Counsel is Gowling WLG for BMO, Aird & Berlis for the receiver, Lerners for National Bank, and Harrison Pensa for TD Equipment Financing.