Diam Danforth Property Inc.
- Proceeding
- Receivership (court-appointed)Section 243(1) of the Bankruptcy and Insolvency Act and Section 101 of the Courts of Justice Act
- File
- CV-20-00640347-00CL
- Industry
- Real estate
Diam Danforth Property Inc. has been under court-appointed receivership since May 4, 2020, when the Ontario Superior Court of Justice, Commercial List, appointed Rosen Goldberg Inc. as receiver and construction lien trustee on the application of Melvyn Eisen, Trustee. The order was made under section 243(1) of the Bankruptcy and Insolvency Act, section 101 of the Courts of Justice Act and section 68(1) of the Construction Act. The proceeding is active under court file CV-20-00640347-00CL.
Motion Record of Receiver returable May 11, 2021 (Distribution to Second Mortgagees) — Application / notice of application
Supplementary Motion Rwecord of Receiver Returnable August 13, 2020 — Application / notice of application
Order of Justice Koehnen dated August 6, 2020 (Eisen Distribution) — Distribution order
Motion Record of Receiver Returnable July 15, 2020-Distribution (Volume 1of 2) — Application / notice of application
Motion Record of Receiver Returnable July 15, 2020-Distribution (Volume 2 of 2) — Application / notice of application
The court granted an approval and vesting order for the sale to GAL Real Holdings Ltd. Closing terms, as extracted: Vesting is effective upon delivery of the Receiver's certificate to the Purchaser substantially in the form of Schedule 'A'. Sealed: Confidential Appendices 1-4 to the Second Report: the Receiver's summary of offers, the Initial APA, the Purchaser's affidavit sworn June 9, 2020, and emails between the Receiver and its counsel and the Purchaser's counsel dated June 2, 4 and 6, 2020; sealed until completion of the Transaction or further Order.
Source: Approval and Vesting Order of Justice Koehnen dated June 17, 2020
The court approved a sale and investment solicitation process.
Source: Order of Justice Koehnen dated May 22, 2020 (Sale Procedure)
The court put Diam Danforth Property Inc.'s property in the hands of Rosen Goldberg Inc. as receiver and construction lien trustee on May 4, 2020, on Melvyn Eisen's application.
Application to Appoint Receiver returnable May 4, 2020 was filed. Court file CV-20-00640347-00CL.
Source: Application to Appoint Receiver returnable May 4, 2020
Debtor
Diam Danforth Property Inc.
Receiver
Rosen Goldberg
Bench
| Judge | Court | On this docket | Cases on record |
|---|---|---|---|
| Justice Koehnen | Ontario Superior Court of Justice | 6 orders, May 2020 – Aug 2020 | 83 cases on record |
| Justice Conway | Ontario Superior Court of Justice | 2 orders, Jun 2021 | 310 cases on record |
Counsel of record
| Party | Counsel | First seen | Source |
|---|---|---|---|
| ReceiverRosen Goldberg | Blaney McMurtry LLP | 5 May 2020 | Endorsement · 5 May 2020 |
| DebtorDiam Danforth Property Inc. | Laishley Reed LLP | 5 May 2020 | Endorsement · 5 May 2020 |
| Creditorcertain Beneficiaries of the second and third mortgages | Miller Thomson LLP | 5 May 2020 | Endorsement · 5 May 2020 |
| Creditorcertain investors in the Olympia Trust Company second mortgage | Miller Thomson LLP | 21 Jun 2021 | Order · 21 Jun 2021 |
| CreditorGillam Group Ltd | Dentons Canada LLP | 5 May 2020 | Endorsement · 5 May 2020 |
| CreditorGrounded Engineering Inc | Blundell Professional Corporation | 5 May 2020 | Endorsement · 5 May 2020 |
| CreditorMelvyn Eisen | Goldman Sloan Nash & Haber LLP | 4 May 2020 | Endorsement · 5 May 2020 |
| Creditornon-possessory Rosen Goldberg Inc | Blaney McMurtry LLP | 19 May 2020 | Order · 21 Jun 2021 |
| CreditorThrive Capital Management Limited | Scalzi Law LLP | 5 May 2020 | Endorsement · 5 May 2020 |
| # | Priority class | Creditor | Amount | Source |
|---|---|---|---|---|
| 4 | Secured | Melvyn Eisen, Trustee (Melvyn D. Eisen) — first mortgage and GSA lender (99.56% direct; remaining 0.44% transferred from Community Trust Company on April 22, 2020)Mortgage on 2359 Danforth Avenue, Toronto (dated Feb 29, 2019) and General Security Agreement (dated Feb 17, 2019; PPSA file 748765341 registered Mar 4, 2019). Amount borrowed under the Jan 16, 2019 commitment letter: $11,500,000. — Demand amount = $11,500,000 principal + $166,985.75 interest (Mar 1 to Apr 24, 2020) + $4,520 appraisal costs + $15,000 costs. The affidavit also states a default of $11,662,601.96 as of April 1, 2020. Mortgage ranks first by postponements, with the possible exception of two construction liens for holdback deficiencies. Debtor consented to immediate enforcement on · as of 23 Apr 2020 | $11.7M | Application to Appoint Receiver returnable May 4, 2020 |
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 8 | Unsecured | |||
| 8 | Unsecured |
8 more claims in 2 classes The stack holds Secured and Unsecured claims.
Every creditor and every amount, drawn to scale.
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See all plansThis proceeding was commenced by a secured creditor. The record does not include the debtor’s own statement of assets and liabilities — that ceiling is the record’s, not this page’s.
Sale approved — Court approved the Transaction under the Amended APA and vesting of the Purchased Assets in the Purchaser upon delivery of the Receiver's certificate.Approval and Vesting Order of Justice Koehnen dated June 17, 2020 · 17 Jun 2020
| Purchaser | Price | Status | Source |
|---|---|---|---|
| GAL Real Holdings Ltd.the Real Property municipally known as 2359 Danforth Avenue, Toronto, Ontario, and the Purchased Assets described in the Amended APA · real property · agreement 9 Jun 2020 | Subscribers | Approved17 Jun 2020 | Approval and Vesting Order of Justice Koehnen… |
| Date | Document | File |
|---|---|---|
Order Of Justice Conway dated JUne 21, 2021 (Distribution)
| PDF · Subscribers | |
Order of Justice Conway dated June 21, 2021 (Miller Thomson fees)
| PDF · Subscribers | |
Endorsement of Justice Pattillo dated May 11, 2021 (scheduling )
| PDF · Subscribers | |
| Motion Record of Receiver returable May 11, 2021 (Distribution to Second Mortgagees) | PDF · Subscribers | |
| Supplementary Motion Rwecord of Receiver Returnable August 13, 2020 | PDF · Subscribers | |
Order of Justice Koehnen dated August 6, 2020 (Eisen Distribution)
| PDF · Subscribers | |
Order of Justice Koehnen dated July 15, 2020 ( Distribution)
| PDF · Subscribers | |
| Motion Record of Receiver Returnable July 15, 2020-Distribution (Volume 1of 2) | PDF · Subscribers | |
Motion Record of Receiver Returnable July 15, 2020-Distribution (Volume 2 of 2)
| PDF · Subscribers | |
Approval and Vesting Order of Justice Koehnen dated June 17, 2020
| PDF · Subscribers | |
Motion Record of Receiver Returnable June 17, 2020
| PDF · Subscribers | |
Order of Justice Koehnen dated May 22, 2020 (Sale Procedure)
| PDF · Subscribers | |
Motion Record of Receiver Returnable May 22, 2020
| PDF · Subscribers | |
Endorsement of Justice Koehnen
| PDF · Subscribers | |
Factum of Applicant ( appointment of receiver)
| PDF · Subscribers | |
Receivership Appointment Order dated May 4, 2020
| PDF · Subscribers | |
Application to Appoint Receiver returnable May 4, 2020
| 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., “Diam Danforth Property Inc.” (Receivership (court-appointed)), Ontario Superior Court of Justice. Retrieved 4 November 2026, https://proceedings.ca/case/diam-danforth-property-inc