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.
The court granted an approval and vesting order for the sale to The Corporation of The Township of Southgate. Closing terms, as extracted: Delivery of Receiver's Certificate confirming payment, satisfaction of closing conditions, and completion of the Transaction vests the Purchased Assets in the Purchaser. Sealed: Sale Agreement.
Notice and Statement of the Receiver dated March 20, 2026 — Notice of receiver (s. 245 / Form 87)
The court appointed KPMG Inc. as receiver and manager, on the application of ROYAL BANK OF CANADA. Court file CV-26-00000041-0000.
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.
Case update
Flex Modular: what the receiver did not find in Dundalk
On March 10, KPMG, as receiver, attended the Dundalk, Ontario plant from which Flex Modular made and installed modular buildings, and found it substantially vacant, with no meaningful machinery, equipment or inventory and no physical books or records. On July 20 the court approved the site's sale to the Township of Southgate; the price is sealed.
Debtor
FlexModular
Receiver
KPMG
Bench
| Judge | Court | On this docket | Cases on record |
|---|---|---|---|
| Justice Chang | Ontario Superior Court of Justice | 2 orders, Jul 2026 | 7 cases on record |
| Justice McSweeney | Ontario Superior Court of Justice | 2 orders, Feb 2026 | 6 cases on record |
Counsel of record
| Party | Counsel | First seen | Source |
|---|---|---|---|
| ReceiverKPMG | Aird & Berlis LLP | 20 Jul 2026 | Order · 20 Jul 2026 |
| # | Priority class | Creditor | Amount | Source |
|---|---|---|---|---|
| 4 | Secured | Royal Bank of Canada · in 584 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 | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 4 | Secured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured |
42 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 plansSale 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 |
As at ·
The total 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 |
|---|---|---|
Ancillary Relief Order dated July 20, 2026
| PDF · Subscribers | |
Approval and Vesting Order dated July 20, 2026
| PDF · Subscribers | |
| Motion Record dated July 9, 2026 | PDF · Subscribers | |
Notice and Statement of the Receiver dated March 20, 2026
| PDF · Subscribers | |
Affidavit of Jason Gagnon sworn March 10, 2026
| PDF · Subscribers | |
Appointment Order dated February 23, 2026
| PDF · Subscribers | |
Endorsement of Justice McSweeney dated February 23, 2026
| PDF · Subscribers | |
Application Record dated February 3, 2026
| PDF · Subscribers | |
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CiteProceedings., “FlexModular” (Receivership (court-appointed)), Ontario Superior Court of Justice. Retrieved 4 November 2026, https://proceedings.ca/case/flexmodular
Sources last checked · summary updated 8 August 2026 · Report a correction · Printed from proceedings.ca/case/flexmodular
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.