Vandyk - Uptowns Limited, Receivership

Vandyk – Uptowns Limited, a member of the Vandyk Group of Companies which owns property in Brampton, Ontario intended for a condominium development (which is in the process of being constructed), was placed in receivership on November 14, on application by KingSett Mortgage Corporation and Dorr Capital Corporation, owed approximately $183 million by the company and certain other Vandyk subsidiaries.

The companies have defaulted on numerous mortgages for the five properties they are developing, including by allegedly diverting more than $37 million of funds, failing to pay property taxes and failing to pay interest when due.

Vandyk – Uptowns Limited was immediately placed into receivership, while four other subsidiaries were given time to repay the loan.

KSV was appointed receiver.

Counsel is Osler for the receiver, Bennett Jones for KingSett and Dorr Capital, Paliare Roland for the companies, and Gowlings for Otera Capital.

By: Dina Milivojevic