Ontario · CCAA
Pre-Filing Report of the Proposed Monitor
Pre-filing report · 15 October 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 filing8 verified
- secured creditorsnote: Amount subject to ongoing interest and costs (per report footnote 2). Construction Lender's rights and Security are to be assigned to TCC Mortgage Holdings Inc. pursuant to pending TCC Assignment Agreements not yet executed as of report date; TCC also acting as proposed DIP Lender. · page: 6 · as of: 2024-10-01 · amount: 73146753 · debtor: Mizrahi Development Group (1451 Wellington) Inc. · creditor: Trez Capital Limited Partnership, by its general partner Trez Capital (2011) Corporation ("Construction Lender") · currency: CAD · security: First mortgage registered against the Real Property, held by Computershare Trust Company of Canada on behalf of the Construction Lender; First Lien Indebtedness facility capped at the lower of $67 million or 73.6% of eligible project costs, plus a $1 million letter of credit facility
- secured creditorsnote: Amount subject to ongoing interest and costs. Pending assignment to TCC Mortgage Holdings Inc. · page: 6 · as of: 2024-10-01 · amount: 7908211 · debtor: Mizrahi Development Group (1451 Wellington) Inc. · creditor: Trez Capital Limited Partnership, by its general partner Trez Capital (2011) Corporation ("Construction Lender") · currency: CAD · security: Second mortgage registered against the Real Property, held by Computershare Trust Company of Canada on behalf of the Construction Lender; Second Lien Indebtedness under a $6 million second credit facility
- financial positionnote: Document states most of MDG's asset base consisted of land acquisition and development costs valued at around $85 million, plus limited prepaid expenses and deposits (a component, not a stated total). Liabilities are stated only as individual components (Construction Lender First/Second Lien, V2I, Berry, 1445 Parcel seller consideration, CWB loan, trade payables) with no aggregate total given; per reporting rules these are not summed. · page: 8 · as at: 2023-12-31 · basis: unaudited financial statements · scope: Mizrahi Development Group (1451 Wellington) Inc. (single-purpose entity) · currency: CAD
- secured creditorsnote: MDG is a guarantor of a loan personally made by V2I to Sam Mizrahi (director/principal, related party); original loan $12,900,000 (2019), maturity extended to Dec 31, 2023; V2I issued Notice of Intention to Enforce Security and commenced enforcement proceedings. · page: 8 · as of: 2024-10-10 · amount: 13300000 · debtor: Mizrahi Development Group (1451 Wellington) Inc. (guarantor); Sam Mizrahi (personal borrower) · creditor: V2 Investment Holdings Inc. ("V2I") · currency: CAD · security: Mortgage registered against the Real Property on April 15, 2024 following default; demand debenture granting V2I a charge over the Real Property upon default
- secured creditorsnote: Surety facility insures purchaser deposits; $24,000,000 is the stated facility value, not a balance owing. · page: 8 · debtor: Mizrahi Development Group (1451 Wellington) Inc. · creditor: Westmount Guarantee Services Inc. · currency: CAD · security: Mortgage registered against the Real Property on October 29, 2019, granted to secure a $24,000,000 surety/deposit-insurance facility (facility value, not a stated outstanding balance)
- secured creditorsnote: Disputed claim: MDG/MDI take the position no further amount is owing after repayment of the $4,000,000 first facility (of original $10,000,000 Berry Loan); Berry claims additional amounts outstanding. Berry has no registrations against MDG or the Real Property (security unperfected/unregistered). Personal guarantor: Sam Mizrahi. · page: 9 · debtor: Mizrahi Developments Inc. (MDI), affiliate of MDG · creditor: David Berry · currency: CAD · security: General security agreement covering all current and future personal property of MDI and MDG; personal guarantees
- secured creditorsnote: Amount owing to Alenfrage is subsumed within the trade payable balance owing to Mizrahi Inc. (MI) of $4,836,364 as at September 30, 2024; MI's own trade payable is unsecured. · page: 10 · as of: 2024-09-19 · amount: 107293.5 · debtor: Mizrahi Development Group (1451 Wellington) Inc. · creditor: Alenfrage Designer Paint Inc. (o/a Alenfrage Painting Service) · currency: CAD · security: Construction lien filed against the Project under the Construction Act
- secured creditorsnote: Loan intended for environmental remediation obligations under Brownfield Financial Tax Incentive Program. · page: 12 · amount: 675930.46 · debtor: Mizrahi Development Group (1451 Wellington) Inc. · creditor: CWB Maxium Financial Inc. · currency: CAD · security: General security agreement dated December 1, 2022, covering MDG's personal property, intellectual property, and real estate (freehold and leasehold); promissory note