On January 13, 2026, the Ontario Superior Court of Justice (Commercial List) appointed KSV Restructuring Inc. as receiver and manager, without security, over the real and personal property of R & B Properties (2011) Inc. pursuant to an application brought by Portage Capital Nominee Corp. under section 243(1) of the Bankruptcy and Insolvency Act and section 101 of the Courts of Justice Act. The appointment followed a contested hearing in which the debtor sought a short adjournment to file responding materials, a request the court denied after finding ample notice had been given and no evidence that the proposed response would challenge the existence of default or the enforceability of the secured creditor’s security.
R & B Properties (2011) Inc. owns commercial real property municipally known as 761 Queen Street West, Toronto, Ontario, together with related personal property used in connection with the real estate. The receivership appointment covers the real property, associated personal property, and all proceeds derived from them. The record does not disclose when the property was acquired, the original financing amount, or the intended long-term business plan for the asset.
Justice Dunphy found that the debtor’s default first occurred no later than October 2023, followed by more than two years of negotiated forbearance intended to allow refinancing or a sale, none of which were completed. During that period, very substantial property tax arrears accumulated, and two major tenants vacated the property within the last year, leaving the building not cash-flow positive. The court described the asset as a “melting ice cube,” noting that ongoing operating losses and vacancies undermined the debtor’s ability to fund the property from outside sources.
The receivership order authorizes the receiver to take possession and control of the property, manage and operate the business associated with the real estate, engage professionals, collect rents and receivables, and market the property for sale or lease.
Counsel is Blake, Cassels & Graydon for Portage Capital Nominee Corp., Stikeman Elliott for the receiver, and Glaholt Bowles for the company.
