Ontario · Receivership (court-appointed)
First Report of the Receiver dated June 14, 2024
Court officer report · 14 June 2024
AI summary
A plain-English summary drawn only from this filing: what it is, why it matters, and the parties, amounts and dates it turns on.
What we verified from this filing17 verified
- secured creditorsnote: Interest and costs continue to accrue, including protective advances by CEI for overdue condominium fees. NRF opinion that the security is valid and enforceable, subject to standard assumptions and qualifications. Two PPSA registrations in favour of CEI. · page: 7 · as of: 2024-02-29 · amount: 13015116 · debtor: Mizrahi (128 Hazelton) Inc. · creditor: Constantine Enterprises Inc. (CEI) – Hazelton Priority Indebtedness (assigned from DUCA Financial Services Credit Union Ltd.) · currency: CAD · security: First-ranking mortgage on the Real Property, general assignment of rents, general security agreement. Underlying DUCA Loan facility approximately $33.5 million (facility size, not the balance). Assigned by DUCA to CEI on February 1, 2024.
- secured creditorsnote: Promissory note dated November 10, 2020, original aggregate principal $2,174,130 (original advance, not the balance). The $2,854,278 figure is from the Receiver's summary table, with no as-at date stated for it. Amounts are subject to accruing interest, fees and costs. Funds were advanced through to Hazelton under the Retail Flow-Through Note. NRF opinion that the security is valid and enforceable, subject to standard assumptions and qualifications. · page: 8 · amount: 2854278 · debtor: Mizrahi 128 Hazelton Retail Inc. · creditor: Constantine Enterprises Inc. (CEI) – Retail Indebtedness · currency: CAD · security: General security agreement by Retail; option agreement granting CEI an option to purchase the Retail APS and the Retail Flow-Through Note for $1 in certain circumstances (not yet occurred); unlimited guarantee by Mr. Mizrahi of all Retail obligations to CEI. Two PPSA registrations in favour of CEI.
- secured creditorsnote: The $18.5 million is a registered maximum principal amount, not an outstanding balance. The Receiver's table lists it as $18,500,000 without stating an outstanding amount. Aviva subordinated its mortgage to the DUCA Mortgage under a priority agreement dated June 27, 2017. CEI registered a postponement in favour of Aviva. · page: 8 · amount: 18500000 · debtor: Mizrahi (128 Hazelton) Inc. · creditor: Aviva Insurance Company of Canada · currency: CAD · security: Charge on the Real Property registered September 22, 2016, in the maximum principal amount of $18.5 million, securing Hazelton's deposit insurance indemnification obligations to homebuyers who paid deposits on units not yet closed. PPSA registration also in favour of Aviva.
- secured creditorsnote: Interest and costs continue to accrue. Subordinated to DUCA (now CEI as holder of the Priority Indebtedness) under a subordination, assignment, postponement and standstill agreement dated June 22, 2017. CEI's mortgage also has a registered postponement in favour of Aviva and the City of Toronto. PPSA registration in favour of CEI. NRF opinion that the security is valid and enforceable, subject to standard assumptions and qualifications. · page: 8 · as of: 2024-02-29 · amount: 31041763 · debtor: Mizrahi (128 Hazelton) Inc. · creditor: Constantine Enterprises Inc. (CEI) – Hazelton Subordinate Indebtedness · currency: CAD · security: Mortgage on the Real Property, general assignment of rents, general security agreement, under the credit agreement dated June 19, 2015 (non-revolving facility, principal $21,000,000).
- secured creditorsnote: Amount outstanding as of November 21, 2023. The Receiver is continuing to review and assess the construction liens. · page: 8 · as of: 2023-11-21 · amount: 507658 · debtor: Mizrahi (128 Hazelton) Inc. · creditor: CEC Mechanical Ltd. · currency: CAD · security: Construction lien registered September 29, 2023 against the Real Property.
- secured creditorsnote: Stated as outstanding; no date given for the amount. Under Receiver review. · page: 8 · amount: 68262 · debtor: Mizrahi (128 Hazelton) Inc. · creditor: CLM General Enterprises · currency: CAD · security: Construction lien registered February 2, 2024 against the Real Property.
- secured creditorsnote: Registered in the amount of $47,502.80. Under Receiver review. · page: 8 · amount: 47502.8 · debtor: Mizrahi (128 Hazelton) Inc. · creditor: 385277 Ontario Limited · currency: CAD · security: Construction lien registered March 8, 2024 against the Real Property.
- secured creditorsnote: Registered in the amount of $138,765.14. Under Receiver review. · page: 8 · amount: 138765.14 · debtor: Mizrahi (128 Hazelton) Inc. · creditor: Penegal Trim & Supply Ltd. · currency: CAD · security: Construction lien registered May 10, 2024 against the Real Property.
- secured creditorsnote: The report states that no obligations are outstanding in respect of this registration. · page: 9 · debtor: Mizrahi 128 Hazelton Retail Inc. · creditor: Mizrahi Constantine (180 SAW) LP · currency: CAD · security: PPSA registration in Ontario against Retail.
- unsecured creditorsnote: Listed by the Receiver among CEI's other claims (section 'Other Known Creditors'); the report does not say whether the lien remains registered, so its secured or unsecured status is not stated. The amount is the lien amount as registered, not a stated current balance. · page: 9 · basis: Indebtedness relating to a construction lien previously registered on title to the Real Property in the amount of $1,351,861, since purchased by CEI. · amount: 1351861 · debtor: Mizrahi (128 Hazelton) Inc. · creditor: Constantine Enterprises Inc. (CEI) – purchased construction lien indebtedness · currency: CAD
- unsecured creditorsnote: Amount is aggregate principal advanced, not a stated current balance. CEI is a related party (50% shareholder of Hazelton). · page: 9 · basis: Unsecured promissory note issued December 3, 2021, under which CEI advanced loans in the aggregate principal amount of $1,500,000. · amount: 1500000 · debtor: Mizrahi (128 Hazelton) Inc. · creditor: Constantine Enterprises Inc. (CEI) – 2021 Grid Note · currency: CAD
- unsecured creditorsnote: Amount is aggregate principal advanced, not a stated current balance. CEI is a related party (50% shareholder of Hazelton). · page: 9 · basis: Unsecured promissory note issued November 10, 2020, under which CEI advanced loans in the aggregate principal amount of $3,200,000. · amount: 3200000 · debtor: Mizrahi (128 Hazelton) Inc. · creditor: Constantine Enterprises Inc. (CEI) – 2020 Grid Note · currency: CAD
- unsecured creditorsnote: Approximate aggregate; the report names no individual creditors. Not verified by the Receiver. · page: 9 · basis: Per a creditors list provided to the Receiver: known unsecured creditors total approximately $4.2 million, owing to consultants, law firms, trade contractors and other parties. · amount: 4200000 · debtor: Mizrahi (128 Hazelton) Inc. · creditor: Unsecured creditors (aggregate as reported, excluding CEI's 2020 and 2021 Grid Notes) · currency: CAD
- purchaserCEI
- sale advisorCBRE Limited
- sale outcometext: Receiver seeks court approval of the Retail APS Sale Process, a stalking horse process with CEI's Stalking Horse APA as the floor bid · scope: parcel · status: process_approved
- stalking horseCEI (300000)