FlexModular
FollowActive
- Proceeding
- Receivership (court-appointed)section 243(1) of the Bankruptcy and Insolvency Act and section 101 of the Courts of Justice Act
- File
- CV-26-00000041-0000
Filings held8
Last activity20 Jul 2026
On the record210 days
Secured debt$1.31M
OverviewSummary updated
FlexModular is the subject of a court-appointed receivership application filed February 3, 2026 in the Ontario Superior Court of Justice (In Bankruptcy and Insolvency) under section 243 of the BIA, court file CV-26-00000041-0000. The applicant secured creditor is Royal Bank of Canada, which reports amounts outstanding as of January 29, 2026, excluding legal fees, of $810,380.75 from 12466546 Canada Inc., $339,735.85 from 1947366 Ontario Inc. and $1,310,207.10 from 2752172 Ontario Inc. RBC holds general security agreements over the personal property of each of those entities and of T. Lawton Holdings Inc., which guaranteed the three credit agreements, plus a first mortgage against the real property in the registered principal amount of $4,000,000. Cited defaults include unpaid property taxes of $48,604.43 and RealCo's grant of a $600,000 second mortgage to Tokio Marine Canada Ltd. without RBC's consent. The proceeding is active.
Proceedings AIAsk this case — answers cite the filings
Case updates8 dated entries
#Filing
Notice and Statement of the Receiver dated March 20, 2026 — Notice of receiver (s. 245 / Form 87)
#Order
The court appointed KPMG Inc. as receiver and manager, on the application of ROYAL BANK OF CANADA. Court file CV-26-00000041-0000.
#Filing
Royal Bank of Canada commenced the receivership application in Ontario Superior Court under court file CV-26-00000041-0000, opening the proceeding against the Lawton group entities.
Parties
Debtor
FlexModular
Receiver
KPMG
Capital structureAs asserted in the filings
| # | Priority class | Creditor | Amount | Source |
|---|---|---|---|---|
| 4 | Secured | Royal Bank of Canada · in 556 casesRBC Mortgage - first mortgage against the Real Property in the registered principal amount of $4,000,000 (Exhibit L); General Security Agreement over all personal property of RealCo (Exhibit I); guaranteed by 194, 124 and Holdings, each limited to $1,500,000; RealCo Credit Agreement (Jan 26, 2023) established a term facility (max principal $1,500,000, maturity Feb 16, 2026) — Amount outstanding per table 'as of January 29, 2026' under the RealCo Credit Agreement, excluding legal fees; events of default include unpaid property taxes of $48,604.43 and RealCo granting a second mortgage to Tokio M · as of 29 Jan 2026 | $1.31M | Application Record dated February 3, 2026 |
| 4 | Secured | Royal Bank of Canada · in 556 casesGeneral Security Agreement over all personal property of 124 (Exhibit H); guaranteed by 194, RealCo and Holdings, each limited to $800,000; 124 Credit Agreement (Aug 15, 2024) established a revolving demand facility (max $600,000) and credit card facility (max $200,000) — Amount outstanding per table 'as of January 29, 2026' under the 124 Credit Agreement, excluding legal fees — debtor: 12466546 Canada Inc. ("124") · as of 29 Jan 2026 | $810K | Application Record dated February 3, 2026 |
| 4 | Secured | Royal Bank of Canada · in 556 casesGeneral Security Agreement over all personal property of 194 (Exhibit J); guaranteed by RealCo, 124 and Holdings, each limited to $250,000; 194 Credit Agreement (Jan 26, 2023) established a revolving demand facility (max $250,000) and credit card facility (max $100,000) — Amount outstanding per table 'as of January 29, 2026' under the 194 Credit Agreement, excluding legal fees — debtor: 1947366 Ontario Inc. ("194") · as of 29 Jan 2026 | $340K | Application Record dated February 3, 2026 |
| 4 | Secured | Tokio Marine Canada Ltd. (the "Surety") · in 5 casesSecond mortgage against the Real Property, registered principal amount of $600,000 — Registered principal amount of second mortgage per Title Search; not a stated outstanding balance. Granting of this second mortgage without RBC's consent is cited as an event of default under the RealCo Credit Agreement — debtor: 2752172 Ontario Inc. ("RealCo") | — | Application Record dated February 3, 2026 |
| 4 | Secured | Royal Bank of Canada · in 556 casesGeneral Security Agreement over all personal property of Holdings (Exhibit K) — Holdings is not a direct borrower under any Credit Agreement; its GSA secures its guarantees of the 124, RealCo and 194 Credit Agreements (each guarantee limited to a stated principal amount); no separate outstanding balance stated for Holdings — debtor: T. Lawton Holdings Inc. ("Holdings") | — | Application Record dated February 3, 2026 |
| 8 | Unsecured | Buttconas of March 10, 2026 — debtor: 12466546 Canada Inc. | $285K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Trinity Communication Services Ltd. · in 2 casesas of March 10, 2026 — debtor: 12466546 Canada Inc. | $265K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Receiver General · in 75 casesas of March 10, 2026 — Receiver General - likely CRA source deductions/remittances (deemed trust class) — debtor: 1947366 Ontario Inc. | $148K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Receiver General · in 75 casesas of March 10, 2026 — Receiver General - likely CRA source deductions/remittances (deemed trust class) — debtor: 2752172 Ontario Inc. | $79.4K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | The Township of Southgateas of March 10, 2026 — Municipal taxes — debtor: 2752172 Ontario Inc. | $55.5K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | On-Site Rescue Incas of March 10, 2026 — debtor: 12466546 Canada Inc. | $36.4K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Blackfire Sprinkler Co.as of March 10, 2026 — debtor: 12466546 Canada Inc. | $27.6K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Craftmanship Construction Inc.as of March 10, 2026 — debtor: 12466546 Canada Inc. | $26K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Siemens · in 4 casesas of March 10, 2026 — debtor: 12466546 Canada Inc. | $24.6K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | A.C. Technical Systems Ltd.as of March 10, 2026 — debtor: 12466546 Canada Inc. | $20.8K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | TK Elevator Limitedas of March 10, 2026 — debtor: 12466546 Canada Inc. | $20.4K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Taylor Sheet Metalas of March 10, 2026 — debtor: 12466546 Canada Inc. | $18.4K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Central York Automotive Ltd.as of March 10, 2026 — debtor: 12466546 Canada Inc. | $17.9K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Destiny Roofing Corp.as of March 10, 2026 — debtor: 12466546 Canada Inc. | $17.3K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | VML Plumbing & Mechanical Inc.as of March 10, 2026 — debtor: 12466546 Canada Inc. | $12.3K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | MNP LLP · in 63 casesas of March 10, 2026 — debtor: 2752172 Ontario Inc. | $11.8K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Gerrits Engineering Ltd.as of March 10, 2026 — debtor: 1947366 Ontario Inc. | $10.7K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | C3Techs Incas of March 10, 2026 — debtor: 12466546 Canada Inc. | $8.46K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Odam Electric Inc.as of March 10, 2026 — debtor: 1947366 Ontario Inc. | $6.82K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Harwood's Constructions Ltd.as of March 10, 2026 — debtor: 12466546 Canada Inc. | $6.68K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Peak Performance HRas of March 10, 2026 — debtor: 12466546 Canada Inc. | $6.53K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | XL Architecture & Modular Design Ltd.as of March 10, 2026 — debtor: 1947366 Ontario Inc. | $5.65K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | MNP LLP · in 63 casesas of March 10, 2026 — debtor: T. Lawton Holdings Inc. | $5.1K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | MNP LLP · in 63 casesas of March 10, 2026 — debtor: 12466546 Canada Inc. | $5K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Odam Electric Inc.as of March 10, 2026 — debtor: 12466546 Canada Inc. | $4.18K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Metro Compactor Service Inc. · in 3 casesas of March 10, 2026 — debtor: 12466546 Canada Inc. | $3.57K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Zuccaro Constructionas of March 10, 2026 — debtor: 1947366 Ontario Inc. | $1.81K | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Maxx Global Networksas of March 10, 2026 — debtor: 12466546 Canada Inc. | $958 | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Intertek · in 7 casesas of March 10, 2026 — debtor: 12466546 Canada Inc. | $904 | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Watson Building Suppliesas of March 10, 2026 — debtor: 12466546 Canada Inc. | $889 | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Municipality of West Nipissingas of March 10, 2026 — Municipal taxes — debtor: 1947366 Ontario Inc. | $569 | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Cooper Equipment Rentals · in 11 casesas of March 10, 2026 — debtor: 12466546 Canada Inc. | $486 | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | MNP LLP · in 63 casesas of March 10, 2026 — debtor: 1947366 Ontario Inc. | $380 | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Chalmers Fuels · in 2 casesas of March 10, 2026 — debtor: 12466546 Canada Inc. | $239 | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Battlefield Equipment · in 4 casesas of March 10, 2026 — debtor: 1947366 Ontario Inc. | $181 | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Brae-Con Building Suppliesas of March 10, 2026 — debtor: 12466546 Canada Inc. | $68 | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Battlefield Equipment · in 4 casesas of March 10, 2026 — debtor: 12466546 Canada Inc. | $34 | Notice and Statement of the Receiver dated March 20, 2026 |
| 8 | Unsecured | Various Employees · in 37 casesas of March 10, 2026 — Amount owed unknown — debtor: 12466546 Canada Inc. | — | Notice and Statement of the Receiver dated March 20, 2026 |
“not stated” means the record names the claim without a figure; “—” means not in the extracted record.
Sale processPer the transactions
Sale approvedApproval and Vesting Order dated July 20, 2026 · 20 Jul 2026
| Purchaser | Price | Status | Source |
|---|---|---|---|
| The Corporation of The Township of Southgatethe Purchased Assets (as defined in the Sale Agreement), including, without limitation, the Real Property · real property · agreement 8 Jun 2026 | Sealed | Approved20 Jul 2026 | Approval and Vesting Order dated July 20, 2026 |
Closing termsDelivery of Receiver's Certificate confirming payment, satisfaction of closing conditions, and completion of the Transaction vests the Purchased Assets in the Purchaser.Approval and Vesting Order dated July 20, 2026
Sealed materialsSale AgreementApproval and Vesting Order dated July 20, 2026
Estate financialsReported figures — never derived
Total assets at filing$9.23M
As at 30 Sep 2025 · per Debtors' most recent available [internal and unaudited] financial statements; consolidated book values, which may differ materially from realizable value · Consolidated - 12466546 Canada Inc., 2752172 Ontario Inc., and 1947366 Ontario Inc.; T. Lawton Holdings Inc. excluded (information not provided; understood to have no material assets other than interests in the other three Debtors) — Receiver has been unable to locate current financial information for the Debtors; figures represent book values, not necessarily realizable value
Documents8 filings
| Date | Document | File |
|---|---|---|
Ancillary Relief Order dated July 20, 2026
| ||
Approval and Vesting Order dated July 20, 2026
| ||
| Motion Record dated July 9, 2026 | ||
Notice and Statement of the Receiver dated March 20, 2026
| ||
| Affidavit of Jason Gagnon sworn March 10, 2026 | ||
Appointment Order dated February 23, 2026
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Endorsement of Justice McSweeney dated February 23, 2026
| ||
Application Record dated February 3, 2026
| ||
Filing titles, dates, and extracted key facts are public.
CiteProceedings., “FlexModular” (Receivership (court-appointed)), Ontario Superior Court of Justice. Retrieved 20 September 2026, https://proceedings.ca/case/flexmodular