Stateview Homes, receivership

Stateview Homes, a Woodbridge, Ontario-based home developer, had 7 of its developments and certain industrial properties (together, the “Debtors”) placed in receivership on May 2, 2023 on application by lenders KingSett, Atrium Mortgage Corporation and Dorr Capital. The secured debt owing on the Debtors’ properties placed in receivership exceeds $300 million, including approximately $172 million to KingSett, $24 million to Atrium and $47 million to Dorr Capital. In April, StateView failed to make scheduled payments to its lenders. Shortly thereafter the applicants learned that certain StateView companies and individuals had acknowledged, pursuant to a recent settlement agreement, that their accounts at TD had been used to perpetrate an extensive cheque kiting scheme which resulted in TD suffering losses that exceed $37 million. The settlement agreement contemplated, among other things, significant immediate payments to TD in priority to the applicants and Stateview's other creditors. With no liquidity, no ability to raise capital, and liens impacting the ability to advance construction and close townhomes on certain projects, the applicants applied for a receiver to be appointed over various properties to preserve and maximize their value for the benefit of all stakeholders. The Debtors’ projects that have been placed in receivership are On the Mark, Nao I, Nao II, Minu, High Crown, BEA Towns, Nashville and certain industrial buildings. KSV is the Receiver. Counsel is Bennett Jones for Kingsett, Cassels for the Receiver of Nao I, Minu, High Crown, On the Mark and the Industrial properties and Paliare Roland for the Receiver of BEA Towns, Nao II and Nashville, Norton Rose Fulbright for the Debtors, McCarthy Tétrault for TD Bank, Blaney McMurtry for Dorr Capital and Equitable Bank, Lenczner Slaght for certain of StateView’s principals, and Chaitons for Atrium.