Sunrise Acquisition (Elmvale) Inc., Receivership

Sunrise Acquisition (Elmvale) Inc., an Ontario-based real estate company, was placed in receivership on April 15 on application by AFC Mortgage Administration Inc. (“AFC”), owed approximately $4.7 million.

The company is the beneficial owner of 10 acres of property in Elmvale, Ontario approved for a 65 freehold townhome development financed by AFC.

Certain entities related to the company, including Sunrise Acquisitions (Hwy 7) Inc., have been involved in insolvency proceedings over the last few years during which KSV as receiver discovered that the company’s principals, Sajjad Hussain and Muzammil Kodwavi, had misappropriated over $14 million in funds.

AFC brought the receivership application after Mr. Hussain and Mr. Kodwavi failed to attend multiple examinations, produce the required documentation, or pay a Court-approved settlement. The company brought a competing CCAA application, but the Court granted AFC’s receivership application.

Rosen Goldberg is the receiver.

Counsel is Teplitsky for the receiver, Mand Rai for AFC and Tyr for Sunrise Elmvale.

By: Dina Milivojevic