2055226 Ontario Inc., Alliance (Sutton) Inc., Berkstar Development Inc. and Rose Operating I GP Inc. are in CCAA proceedings under the Companies' Creditors Arrangement Act, commenced August 24, 2026 in the Ontario Superior Court of Justice (court file no. CL-26-00000362-0000) on the application of MarshallZehr Group Inc., with BDO Canada Limited as monitor. MarshallZehr holds first-ranking charges over the project's Phase 1 and Phase 2 and 3 properties and was owed $19,859,527.12 and $22,398,260.31 under its two credit facilities as at July 23, 2026, approximately $42,257,787.43 in aggregate. Seven construction liens totalling approximately $5.7 million are registered against the Phase 1 property. Trade creditors were owed $10.4 million as at July 31, 2026, including the lien amount, and Canada Revenue Agency HST arrears stand at approximately $950,000. Unaudited management-prepared statements for the project show assets of $60.6 million against liabilities of $62.2 million as at December 31, 2025.
The claims bar date has passed — claims were due by
Per the Priority Claims Procedure Order dated 18 September 2026.
The court extended the stay of proceedings to December 4, 2026 and sealed the confidential appendices to the Monitor's Third Report pending completion of the Sale Process and closing of a transaction.
Source: Order ( Stay Extension and Approval of Monitor's Conduct and Reports
Approved the Sale Process with a November 11, 2026 bid deadline and Ducimus Capital Inc.'s agreement solely as the Stalking Horse Bid, at $12,300,000 for Phase 1 and $10,000,000 for the Phase 2 and 3 Property.
Source: Order (Sale Process and Stalking Horse Agreement Approval)
An order made September 18, 2026 set the procedure for filing and determining claims against the Companies, requiring claims to be submitted by October 26, 2026.
Source: Schedule C - Proof of Claim, Pursuant to Priorty Claims Procedure Order made Sept 18, 2026
The court approved a claims process on September 18, 2026, fixing October 26, 2026 as the bar date for filing claims against the Companies.
Source: Priority Claims Procedure Order
BDO's Second Report described stakeholder communications and its review of listing proposals from four brokers for a potential sale of the Project, and proposed a Priority Claims Procedure for pre-filing priority claims.
Source: Second Report of the Monitor
The stay of proceedings was extended to November 13, 2026.
Source: Amended and Restated Initial Order - August, 28, 2026.
The unit sales order authorized the Monitor to complete sales of Phase 1 units under existing agreements at prices up to $1,100,000, excluding HST and extras, without further court approval.
Source: Unit Sales Order
Justice Dunphy granted the initial order on August 24, 2026, appointing BDO Canada Limited as monitor with the stay running to September 3, 2026.
Source: Initial Order, August 26, 2026
Responding Motion Record – Samuel G. Reisman (includes affidavit of Sam Reisman, sworn August 22, 2026) — Response / objection pleading
MarshallZehr filed a further submission in support of the application on August 18, 2026.
Source: Aide Memoire of MZ
MarshallZehr Group Inc. filed its application on August 17, 2026 for an initial order under the Companies' Creditors Arrangement Act, with BDO Canada Limited as proposed monitor, court file CL-26-00000362-0000.
Source: Application Record of the MarshallZehr Group Inc. (the “Applicant”)
Final Pre-Filing Report of BDO Canada Limited in its Capacity as Proposed Monitor — Pre-filing report
Schedule F - Legal Description of Phase 1 Property in the Land Titles Office — Application filed
Schedule G - Legal Description of Phase 2 and 3 Property in the Land Titles Office — Application filed
Case update
Hedge Road: Ducimus sets the floor at $23.3 million
A month after Justice Dunphy called the creditor-led CCAA over the Lake Simcoe subdivision "in substance" a receivership, BDO asks the court to approve a sale process led by a $23.3 million stalking horse from Ducimus Capital, a first-ranking participant in the secured loan, structured as a partial reverse vesting order that would leave 13 pre-construction home purchase agreements behind. Lien claimants have until October 26 to prove priority.
Case update
Hedge Road: the fight over the form of the order
MarshallZehr Group, owed $42.9 million on a stalled Lake Simcoe subdivision, brought a creditor-led CCAA application seeking a monitor with the power to make every Major Decision the co-owners used to make unanimously. Nobody opposes the filing — not even Sam Reisman, the director, subordinated lender and 12.8% mortgage participant who answered it. Six days of duelling affidavits, two aide memoires and an exchange of letters filed as a motion record later, what Justice Dunphy decides on August 24 is what the initial order says.
Debtor
2055226 Ontario Inc., Alliance (Sutton) Inc., Berkstar Development Inc., and Rose Operating I GP Inc.
Monitor
BDO
Bench
| Judge | Court | On this docket | Cases on record |
|---|---|---|---|
| Justice Dunphy | Ontario Superior Court of Justice | 7 orders, Aug 2026 – Sep 2026 | 93 cases on record |
Counsel of record
| Party | Counsel | First seen | Source |
|---|---|---|---|
| MonitorBDO | Norton Rose Fulbright Canada LLP | 25 Aug 2026 | Service list · 25 Aug 2026 |
| Applicant2055226 Ontario Inc., Alliance (Sutton) Inc., Berkstar Development Inc., and Rose Operating I GP Inc. | Miller Thomson LLP · Frank Feldman Law · Reconstruct LLP | 17 Aug 2026 | Service list · 25 Aug 2026 |
| CreditorAM Group of Companies Ltd | Duncan, Linton LLP | 24 Aug 2026 | Application · 24 Aug 2026 |
| CreditorApplewood Air Conditioning | Michael A. Cohen, Barrister & Solicitor | 24 Aug 2026 | Application · 24 Aug 2026 |
| CreditorDucimus Capital Inc | Fasken Martineau DuMoulin LLP | 24 Aug 2026 | Application · 24 Aug 2026 |
| CreditorLake Scugog Lumber Inc | Loopstra Nixon LLP | 24 Aug 2026 | Application · 24 Aug 2026 |
| CreditorMarshallZehr Group Inc | Miller Thomson LLP | 27 Aug 2026 | Factum · 27 Aug 2026 |
| CreditorMartino Contractors Ltd | Battiston & Associates | 24 Aug 2026 | Application · 24 Aug 2026 |
| CreditorMose Drywall Systems Ltd | Gionet Fairley Wood LLP | 24 Aug 2026 | Application · 24 Aug 2026 |
| CreditorSam Reisman | Thornton Grout Finnigan LLP | 23 Aug 2026 | Affidavit · 23 Aug 2026 |
| CreditorTarion Warranty Corporation | Torys LLP | 25 Aug 2026 | Service list · 25 Aug 2026 |
| CreditorYork Region Vacant Land Cond Corp No | Shibley Righton LLP | 24 Aug 2026 | Application · 24 Aug 2026 |
| # | Priority class | Creditor | Amount | Source |
|---|---|---|---|---|
| 4 | Secured | Marshallzehr Group Inc. · in 19 casesas of Filing Date (August 24, 2026) — Listed as secured creditor per Monitor's List of Creditors, dated August 25, 2026, based on Companies' books and records as of Filing Date — debtor: 2055226 Ontario Inc., Alliance (Sutton) Inc., Berkstar Development Inc. and Rose Operating I GP Inc. | $42.9M | Notice to Creditors |
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured |
74 more claims in 2 classes The stack holds Secured and Unsecured claims.
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See all plans2 transactions · 2 proposed — Sale Process approved and Stalking Horse Agreement approved solely as the Stalking Horse Bid; approval of any sale and vesting to be sought on a subsequent motion if it is the Successful BidOrder (Sale Process and Stalking Horse Agreement Approval) · 28 Sep 2026
| Purchaser | Price | Status | Source |
|---|---|---|---|
| Phase 1 Unit purchasers under Existing APAs, unnamedthe Phase 1 Units · real property | Sealed | Proposed | First Report of the Monitor |
| Ducimus Capital Inc.Stalking horseshare and asset purchase of the Respondents' Property including the Phase 1 Property and the Phase 2 and 3 Property, approved solely as the Stalking Horse Bid · assets and shares · agreement 21 Sep 2026 | Subscribers | Proposed | Order (Sale Process and Stalking Horse… |
As at ·
The 2 totals the debtor stated at filing
Each one as the filing states it, with its source.
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See all plans| Date | Document | File |
|---|---|---|
Order ( Stay Extension and Approval of Monitor's Conduct and Reports
| PDF · Subscribers | |
Order (Sale Process and Stalking Horse Agreement Approval)
| PDF · Subscribers | |
Third Report of the Monitor
| PDF · Subscribers | |
Priority Claims Procedure Order
| PDF · Subscribers | |
Schedule A - Notice to Priority Creditors
| PDF · Subscribers | |
| Schedule B - Instruction Letter for the Priority Claim Procedure | PDF · Subscribers | |
Schedule C - Proof of Claim, Pursuant to Priorty Claims Procedure Order made Sept 18, 2026
| PDF · Subscribers | |
Factum
| PDF · Subscribers | |
| Motion Record | PDF · Subscribers | |
Second Report of the Monitor
| PDF · Subscribers | |
Amended and Restated Initial Order - August, 28, 2026.
| PDF · Subscribers | |
Unit Sales Order
| PDF · Subscribers | |
Factum of the Application - August, 27, 2026
| PDF · Subscribers | |
First Report of the Monitor
| PDF · Subscribers | |
Notice to Creditors
| PDF · Subscribers | |
Service List
| PDF · Subscribers | |
Endorsement, dated August 26, 2026
| PDF · Subscribers | |
Initial Order, August 26, 2026
| PDF · Subscribers | |
Motion Record – Ducimus Capital Inc.
| PDF · Subscribers | |
| Schedule D - Notice of Revision or Disallowance of Claim | PDF · Subscribers | |
Affidavit of Manav Acharya sworn August 23, 2026
| PDF · Subscribers | |
| Aide Memoire of Applicant | PDF · Subscribers | |
Factum of Samuel G. Reisman
| PDF · Subscribers | |
Supplementary Affidavit of Alex Troop sworn August 23, 2026
| PDF · Subscribers | |
| Responding Motion Record – Samuel G. Reisman (includes affidavit of Sam Reisman, sworn August 22, 2026) | PDF · Subscribers | |
Aide Memoire of MZ
| PDF · Subscribers | |
Affidavit of Alex Troop sworn August 17, 2026
| PDF · Subscribers | |
Application Record of the MarshallZehr Group Inc. (the “Applicant”)
| PDF · Subscribers | |
| Factum of the Applicant | PDF · Subscribers | |
Final Pre-Filing Report of BDO Canada Limited in its Capacity as Proposed Monitor
| PDF · Subscribers | |
| Pre- Filing Report | PDF · Subscribers | |
| FAQ – Purchaser Inquiries | PDF · Subscribers | |
| Schedule E - Notice of Dispute | PDF · Subscribers | |
| Schedule F - Legal Description of Phase 1 Property in the Land Titles Office | PDF · Subscribers | |
| Schedule G - Legal Description of Phase 2 and 3 Property in the Land Titles Office | PDF · Subscribers | |
Filing titles and dates are public, and so is each filing's own page. The figures read from them are for subscribers.
CiteProceedings., “2055226 Ontario Inc., Alliance (Sutton) Inc., Berkstar Development Inc., and Rose Operating I GP Inc.” (CCAA), Ontario Superior Court of Justice. Retrieved 4 November 2026, https://proceedings.ca/case/2055226-ontario-inc-alliance-sutton-inc-berkstar-development-inc-and-rose-operat
Sources last checked · summary updated 27 August 2026 · Report a correction · Printed from proceedings.ca/case/2055226-ontario-inc-alliance-sutton-inc-berkstar-development-inc-and-rose-operat
Facts and summaries are extracted automatically from the court filings linked on each page; the filings remain the authoritative record. Suggested corrections are reviewed against the source filings.