Ontario · Receivership (court-appointed)
First Report to Court dated October 2, 2024
Court officer report · 2 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 filing3 verified
- secured creditorsnote: Report states 'approximately $10.1 million' outstanding as of the date of the Receivership Order (rounded prose figure; no exact dated payout statement on these pages). Debtor's principal's affidavit cites $10,310,037.26 principal and interest per an EQB email of June 6, 2024 (different date; in dispute against the $13,617,097.50 figure in the Smith Affidavit). EQB funded up to 80% of first mortgages and 50% of second mortgages; EQB-funded principal in the current mortgage portfolio is $8,499K (all in default). Approx. $2.6M of EQB debt (eight mortgages discharged/postponed/transferred without consent) is no longer secured by a property charge. Receiver's counsel has not yet conducted a security review of EQB's security. · page: 5 · as of: 2024-08-08 · amount: 10100000 · debtor: EquityLine SPV Limited Partnership · creditor: Equitable Bank (EQB) · currency: CAD · security: Revolving credit facility under Credit Agreement dated August 5, 2021 (as amended), advances up to an aggregate principal of $25 million (facility limit, not balance). Security: general security agreement dated Aug 5, 2021; custodial agreement and title custodian acknowledgement agreement with CTCC (CTCC holds legal title to the mortgages as agent/nominee/bailee for the Debtor); unlimited guarantee from EquityLine Services Corporation (Services Co.); pledge agreement from the MIC; PPSA financing statements registered Aug 27, 2024 against the MIC (re $1.6M diverted repayments) and Sept 10, 2024 against Services Co. (re retained mortgage proceeds).
- secured creditorsnote: Related party: the MIC is the sole limited partner of the Debtor. The report does not state the MIC's priority or security position vis-à-vis EQB; amount shown is its funded share of mortgage principal, not a stated claim against the Debtor. The MIC is itself reported to be winding up. · page: 5 · debtor: EquityLine SPV Limited Partnership · creditor: EquityLine Mortgage Investment Corporation (MIC) · currency: CAD · security: Co-funds the mortgages: $3,306K of the $11,805K current mortgage portfolio principal (first mortgages $1,947K, second mortgages $1,359K); $3,775K across the total portfolio including discharged/postponed.
- unsecured creditorsnote: Debtor principal's sworn statement, approximate; lender not named; no security is described for these loans on these pages. Classified as unsecured only because no security is stated, not because the document says so. · page: 96 · as of: 2024-07-16 · basis: Affidavit of Sergiy Shchavyelyev sworn July 16, 2024: the Debtor borrowed from a third party lender to cover monthly interest payments due to EQB; loans total 'approximately $2,800,000'. · amount: 2800000 · debtor: EquityLine SPV Limited Partnership · creditor: Third party lender (unnamed) · currency: CAD