Ontario · Receivership (court-appointed)
Application Record of the Applicant dated December 3, 2024
Application / notice of application · 3 December 2024
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What we verified from this filing10 verified
- applicantMERIDIAN CREDIT UNION LIMITED
- courtSUPERIOR COURT OF JUSTICE
- court file noCV-24-00003695-0000
- statutory basissubsection 243(1) of the Bankruptcy and Insolvency Act and section 101 of the Courts of Justice Act
- appointeemsi Spergel Inc.
- appointee roleProposed Receiver
- commencement date3 December 2024
- secured creditorsnote: Property tax arrears per Tax Certificate dated November 18, 2024 (Exhibit O). Affiant states these arrears take priority over Meridian's Mortgage, erode equity in the Property, and diminish Meridian's security - a priority/regulatory-type municipal claim ranking ahead of the mortgage. · page: 38 · as of: 2024-11-18 · amount: 6219.51 · debtor: 2444877 Ontario Inc. · creditor: Town of Minto · currency: CAD · security: Statutory municipal property tax lien on 212 Main Street West, Palmerston, Ontario
- secured creditorsnote: $350,492.00 is the registered principal amount, not a stated outstanding balance - no balance is given. Registration of this charge was contrary to covenants in Meridian's Credit Agreement and was cited as an event of default. This creditor's earlier "Old 265 Mortgage" (Instrument WC725256, registered March 20, 2024) was discharged as part of the Loan payout on June 18, 2024, with a $40,000.00 pay-down and the remaining $363,983.49 deferred to a charge on a different property (109-113 Inkerman Street, St. Thomas) - that discharged mortgage is not reported as current security. · page: 38 · debtor: 2444877 Ontario Inc. · creditor: 2654231 Ontario Inc. · currency: CAD · security: Charge/Mortgage registered June 24, 2024 as Instrument No. WC732726 ("New 265 Mortgage") against 212 Main Street West, Palmerston, Ontario, in the registered principal amount of $350,492.00; ranks subsequent to Meridian's Mortgage
- secured creditorsnote: Exact balance per Meridian payout statement dated October 14, 2024 (Exhibit T), the demand letter of October 25, 2024 and the Notice of Intention to Enforce Security (Form 86), all stating $2,616,578.99 as of October 14, 2024, comprising principal $2,505,891.48, accrued interest $36,679.97, prepayment penalty $73,707.54 and administrative fee $300.00, with interest continuing to accrue at 6.00% per annum ($411.93/diem). Loan facility was originally advanced as $2,551,500.00 (Notice of Application) / $2,511,500.00 (Affidavit) - a facility amount, not the balance. Singh is director of the Borrower; his guarantee is a related-party personal guarantee (individual, not a company). PPSA search confirms Meridian is the only party with a registered PPSA security interest against the Borrower. · page: 130 · as of: 2024-10-14 · amount: 2616578.99 · debtor: 2444877 Ontario Inc. · creditor: Meridian Credit Union Limited · currency: CAD · security: First-ranking Collateral Mortgage/Charge (registered principal $2,511,500.00) registered June 18, 2024 as Instrument No. WC732223 against 212 Main Street West, Palmerston, Ontario (LRO No. 61); Notice of Assignment of Rents registered June 18, 2024 as Instrument No. WC732224 (General Assignment of Leases and Rents dated March 7, 2024); General Security Agreement dated March 7, 2024 over all present and after-acquired personal property, perfected by PPSA registration March 4, 2024; unlimited personal guarantee from Gurmit Singh