King Square Ltd., and Markland Residential Corporation
Follow- Proceeding
- Receivership (court-appointed)section 243(1) of the Bankruptcy and Insolvency Act and section 101 of the Courts of Justice Act
- Court
- Ontario Superior Court of Justice · Commercial List
- File
- CV-23-00710215-00CL
King Square Ltd. and Markland Residential Corporation remain subject to an active BIA proceeding arising out of the appointment of a Receiver on December 13, 2023 over two adjoining assets, the King Square Property (Phase 1 lands) and the Development Land (Phase 2/3 lands). MarshallZehr Group Inc., which took an assignment of Firm Capital Mortgage Fund Inc.'s security shortly before the appointment, is owed approximately $52 million in principal and interest as at the appointment date and holds a first charge on the King Square Property and a second charge on the Development Land. Firm Capital recovered the entirety of Facility A between March 2020 and November 2023 through power of sale and has no outstanding balance. Am-Stat Corporation, first mortgagee of the Development Land on a registered principal of $20,000,000, was owed approximately $21 million as at December 31, 2023, including interest accrued to November 30, 2023.
Motion Record of York Region Standard Condominium Corp Part 1 — Application / notice of application
Motion Record of York Region Standard Condominium Corp Part 2 — Application / notice of application
Motion Record of York Region Standard Condominium Corp Part 3 — Application / notice of application
Motion Record of York Region Standard Condominium Corp Part 4 — Application / notice of application
The court granted an approval and vesting order for the sale to 2727297 Ontario Inc. Closing terms, as extracted: Vesting effective upon delivery of Receiver's Certificate confirming payment of purchase price and satisfaction of closing conditions.
Source: Approval and Vesting Order, dated September 27, 2024
The officer filed report no. Second Report. The Receiver continues marketing and selling the King Square retail units, having entered four agreements of purchase and sale (including the APS under review) with closings staggered through March 2025, while separately advancing planning approvals and marketing efforts to sell the adjacent Development Land, for which no bid deadline has yet been set.
Source: Second Report of the Receiver - Part 1, dated September 23, 2024
The court appointed Ernst & Young Inc. as receiver, on the application of MarshallZehr Group Inc.. Court file CV-23-00710215-00CL.
Source: Appointing Receiver Order
Application Record Part 1 was filed. Court file CV-23-00710215-00CL.
Source: Application Record Part 1
Debtor
King Square Ltd., and Markland Residential Corporation
Receiver
EY
Bench
| Judge | Court | On this docket | Cases on record |
|---|---|---|---|
| Justice Black | Ontario Superior Court of Justice | 2 orders, Sep 2024 | 176 cases on record |
| Justice Kimmel | Ontario Superior Court of Justice | 2 orders, Apr 2024 | 182 cases on record |
| Justice Steele | Ontario Superior Court of Justice | 2 orders, Dec 2023 | 220 cases on record |
Counsel of record
| Party | Counsel | First seen | Source |
|---|---|---|---|
| ReceiverEY | Aird & Berlis LLP · Chaitons LLP | 13 Jun 2025 | Service list · 13 Jun 2025 |
| CreditorAltus Group Limited | Pallett Valo LLP | 13 Jun 2025 | Service list · 13 Jun 2025 |
| CreditorAm-Stat Corporation | Dickinson Wright LLP · Meretsky Law Firm | 13 Jun 2025 | Factum · 9 Mar 2026 |
| CreditorCult Iron Works Limited | Pallett Valo LLP | 13 Jun 2025 | Service list · 13 Jun 2025 |
| CreditorDuka Property Management Inc | Re-Law LLP | 13 Jun 2025 | Service list · 13 Jun 2025 |
| CreditorFAAN Mortgage Administrators Inc | Osler, Hoskin & Harcourt LLP | 13 Jun 2025 | Service list · 13 Jun 2025 |
| CreditorNon- YRSCC 1415 | Shibley Righton LLP | 31 Mar 2026 | Factum · 31 Mar 2026 |
| CreditorOMJ Mortgage Capital Inc | Perlin Bal Figol LLP | 13 Jun 2025 | Service list · 13 Jun 2025 |
| CreditorSchindler Elevator Corporation | Blaney McMurtry LLP | 13 Jun 2025 | Service list · 13 Jun 2025 |
| CreditorSkygrid Construction Inc | Torkin Manes LLP | 13 Jun 2025 | Service list · 13 Jun 2025 |
| CreditorZhiqi Mao Aka Ray Mao | Metcalfe, Blainey & Burns LLP | 13 Jun 2025 | Service list · 13 Jun 2025 |
| Priority class | Creditor | Amount | Source |
|---|---|---|---|
| Secured | MarshallZehr Group Inc. · in 19 casesas of date of appointment of Receiver (December 13, 2023) — First ranking charge against King Square Property and second ranking charge against Development Land (security assigned from Firm Capital shortly before Receiver's appointment) — Approximately $52 million for principal and interest as at date of Receiver's appointment. Originally co-lender under the Firm Loan (Facility B), fully postponed to Firm Capital under Co-Lending Agreement dated January 27, 2017; Firm Capital recovered entirety of Facility A and, pursuant to an Assignment of Debt and Security Agreement, assigned its security t | $52M | First Report of the Receiver, dated April 9, 2024 |
| Secured | Am-Stat CorporationFirst ranking mortgage against Development Land, registered principal $20,000,000 — As at December 31, 2023, the Am-Stat loan was approximately $21 million, including accrued interest to November 30, 2023, but excluding additional costs, fees, charges and accrued interest from and after December 1, 2023. — debtor: Markland Residential Corporation · as of 31 Dec 2023 | $21M | First Report of the Receiver, dated April 9, 2024 |
| Secured | Building & Development Mortgages Canada Inc. (Centro Mortgage Inc.) and Olympia Trust Company (BDMC) · in 2 casesThird ranking charge against King Square Property, face amount $8,562,687 — FAAN Mortgage Administrators Inc., court-appointed trustee of BDMC representing 176 individual retail investors, advised the Receiver that BDMC is owed approximately $8.5 million, consistent with the registered face amount. — debtor: King Square Ltd. | $8.56M | First Report of the Receiver, dated April 9, 2024 |
| Secured | Gouping LiCertificate of Pending Litigation, subordinate to all prior ranking registrations against both King Square Property and Development Land — Default judgment dated January 3, 2024 in the amount of $6.5 million plus costs (costs amount unstated); judgment obtained against King Square, Markland and two other related party defendants. — debtor: King Square Ltd., Markland Residential Corporation and two other related party defendants · as of 3 Jan 2024 | $6.5M | First Report of the Receiver, dated April 9, 2024 |
| Secured | Aviva Insurance Company of Canada · in 12 casesSecond ranking mortgage on King Square Property (registered face amount $50,000,000) and third ranking mortgage on Development Land (registered face amount $5,000,000) — Aviva provided deposit insurance to King Square indemnifying purchaser deposit losses; face amounts of registered mortgages are registration ceilings, not balances. Aviva has paid out one claim to date in the amount of approximately $579,000. — debtor: King Square Ltd. | $579K | First Report of the Receiver, dated April 9, 2024 |
| Secured | Ontario Superior Court of Justice on behalf of FAAN Mortgage Administrators Inc.Seventh ranking registered charge against King Square Property; face amount unknown — Face amount recorded as 'Unknown' per Receiver's review of title. — debtor: King Square Ltd. | — | First Report of the Receiver, dated April 9, 2024 |
| Secured | Firm Capital Mortgage Fund Inc. · in 10 casesRegistered first ranking charge against King Square Property and second ranking charge against Development Land; total facility maximum (Facility A $50,000,000 + Facility B $32,200,000) = $82,200,000 face amount — DISCHARGED / paid in full - Firm Capital recovered the entirety of amounts owed to it under Facility A between March 2020 and November 2023 through power of sale; security subsequently assigned to MarshallZehr shortly before Receiver's appointment. No outstanding balance remains with Firm Capital. — debtor: King Square Ltd. and Markland Residential Corporation | — | First Report of the Receiver, dated April 9, 2024 |
| Secured | Stateview Homes Inc.Sixth ranking charge against Development Land, face amount $4,500,000 — Face amount is registered mortgage principal, not a stated balance. — debtor: Markland Residential Corporation | — | First Report of the Receiver, dated April 9, 2024 |
| Secured | First Source Mortgage Corporation (as transferred to 2198136 Ontario Ltd., as transferred to Wu Family Holdings / Wu Family Holdings Inc.) · in 3 casesFifth ranking charge ($7,000,000 face amount) and sixth ranking charge ($7,000,000 face amount) against King Square Property; fifth ranking charge ($7,000,000 face amount) against Development Land — Face amounts are registered mortgage principal amounts, not stated balances; original lender First Source Mortgage Corporation, subsequently transferred through 2198136 Ontario Ltd. to Wu Family Holdings/Wu Family Holdings Inc. — debtor: King Square Ltd. and Markland Residential Corporation | — | First Report of the Receiver, dated April 9, 2024 |
| Secured | OYSX Inc.Fourth ranking charge against King Square Property (face amount $5,000,000); fourth ranking charge against Development Land (face amount $6,000,000) — Face amounts are registered mortgage principal amounts; no balance stated. — debtor: King Square Ltd. and Markland Residential Corporation | — | First Report of the Receiver, dated April 9, 2024 |
“not stated” means the record names the claim without a figure; “—” means not in the extracted record.
This 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.
Approval pending — King Square Units: four agreements of purchase and sale for Permitted Transactions entered into; two vesting orders signed for early fall closings; the APS for units 2R1/2R2 requires court approval as it exceeds the Permitted Transaction thresholdSecond Report of the Receiver - Part 1, dated September 23, 2024 · 23 Sep 2024
| Purchaser | Price | Status | Source |
|---|---|---|---|
| 2727297 Ontario Inc.the property described in Schedule 'A' hereto (the ' Purchased Assets ') · real property · agreement 26 Aug 2024 | SealedPurchase price stated to exceed the threshold of the Permitted Transactions; amount not disclosed as it is sealed. | Approved27 Sep 2024 | Approval and Vesting Order, dated September 27,… |
| Date | Document | File |
|---|---|---|
Factum of Am-Stat Corporation
| ||
| Motion Record of York Region Standard Condominium Corp Part 1 | ||
| Motion Record of York Region Standard Condominium Corp Part 2 | ||
| Motion Record of York Region Standard Condominium Corp Part 3 | ||
| Motion Record of York Region Standard Condominium Corp Part 4 | ||
| Aide Memoire of the Court -Appointed Receiver | ||
Aide Memoire of the York Region Standard Condominium Corp
| ||
| Motion Record of Am-Stat Corporation | ||
Aide Memoire of AM-STAT Corporation
| ||
Service List
| ||
Ancillary Order, dated September 27, 2024
| ||
Approval and Vesting Order, dated September 27, 2024
| ||
Endorsement of Black, J., dated September 27, 2024
| ||
| Motion Record - Part 1, returnable September 27, 2024 | ||
| Motion Record - Part 2, returnable September 27, 2024 | ||
Second Report of the Receiver - Part 1, dated September 23, 2024
| ||
| Second Report of the Receiver - Part 2, dated September 23, 2024 | ||
Endorsement of Kimmel, J., dated April 15, 2024
| ||
| Motion Record, returnable April 15, 2024 | ||
Order, dated April 15, 2024
| ||
First Report of the Receiver, dated April 9, 2024
| ||
| King Square Ltd 245-246 Notice | ||
| Markland Residential Corporation 245-246 Notice | ||
Appointing Receiver Order
| ||
Endorsement
| ||
Application Record Part 1
| ||
Application Record Part 2
| ||
Application Record Part 3
| ||
Filing titles, dates, and extracted key facts are public.
CiteProceedings., “King Square Ltd., and Markland Residential Corporation” (Receivership (court-appointed)), Ontario Superior Court of Justice · Commercial List. Retrieved 20 September 2026, https://proceedings.ca/case/king-square-ltd-and-markland-residential-corporation