Ontario · Receivership (court-appointed)
Application Record
Application / notice of application · 22 April 2025
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 filing11 verified
- applicantDOWNING STREET FINANCIAL INC.
- courtSUPERIOR COURT OF JUSTICE (COMMERCIAL LIST)
- court file noCV-24-00732760-00CL
- provinceONTARIO
- statutory basisSection 243 of the Bankruptcy and Insolvency Act R.S.C.1985 c. B-3, as amended, section 68 of the Construction Act, R.S.O. 1990, c. C. 30, and section 101 of the Courts of Justice Act, R.S.O. 1990, c. C.43
- commencement date6 December 2024
- secured creditorsnote: Subordinated to the Downing Cartier First Mortgage pursuant to a Subordination and Standstill Agreement between Downing Street and Alleghe dated July 9, 2021 · page: 15 · as of: 2021-07-09 · amount: 1000000 · debtor: 257 Inc. and 266 Inc. (the Debtors) · creditor: Alleghe Mortgage Fund Ltd. · currency: CAD · security: Second ranking charge ("Alleghe Second Mortgage") registered July 9, 2021 over 122 Cartier and 124 Cartier
- secured creditorsnote: Regulatory/municipal tax arrears; Debtors had failed to pay property taxes since 2023 for 122 Cartier, 124 Cartier and the 340 Property, and since 2021 for 126 Cartier and the 342 Property; failure to pay constitutes an additional default under the Loan · page: 17 · as of: 2024-11-28 · amount: 61491.49 · debtor: 257 Inc. and 266 Inc. (the Debtors) · creditor: Municipality of Richmond Hill · currency: CAD · security: Statutory lien for unpaid municipal property taxes on the Cartier Properties
- secured creditorsnote: Registration of the lien constitutes an event of default under the Loan · page: 17 · as of: 2024-10-21 · amount: 84750 · debtor: 257 Inc. and 266 Inc. (the Debtors) · creditor: Cope Project Management Corporation · currency: CAD · security: Construction lien ("Cope Lien") registered against the Cartier Properties
- secured creditorsnote: Loan principal increased from $6,000,000 (stated principal outstanding at the time) to $6,500,000 pursuant to the January 2025 Forbearance (Additional Loan Funds of $500,000). The original 2021 charge was registered for $6,300,000 with Firm Capital Mortgage Fund Inc. holding a priority $4,000,000 share and Downing Street holding a subordinate $2,300,000 share; how these original shares relate to the current $6,500,000 Loan amount is not explained in the excerpted materials. Separately, '2025 Interest Arrears' of $195,204.16 are stated as of February 28, 2025 (not included in the $6,500,000 figure). Debt is also personally guaranteed by Shahnaz Ebrahimi and Khosrow Rangchi (principals of the Debtors) under a Guarantee and Postponement of Claim dated July 8, 2021, and additionally guaranteed by Prudence Ventures Inc. and Aria Real Estate Group Inc. under guarantees dated January 24, 2025, secured by Collateral Mortgages of $6,500,000 over properties owned by Rangchi, Prudence and Aria (not the Cartier Properties). · page: 54 · as of: 2025-01-28 · amount: 6500000 · debtor: 257 Inc. and 266 Inc. (the Debtors) · creditor: Downing Street Financial Inc. · currency: CAD · security: First mortgage ("Downing Cartier First Mortgage") registered as Instrument No. YR3280094 in LRO #65 on July 9, 2021 over 122 Cartier, 124 Cartier, 126 Cartier Crescent and the 340/342 Properties; Notice of Mortgage Amendment registered as Instrument No. YR3761818 on January 28, 2025; also secured by a General Security Agreement dated July 8, 2021 and a General Assignment of Rents and Leases dated July 8, 2021
- secured creditorsnote: Figure is the registered principal share at time of registration, not a stated current balance; Firm Capital is not otherwise referenced in the forbearance agreements or demand letters excerpted here, so its present status is unclear. · page: 152 · as of: 2021-07-09 · debtor: 257 Inc. and 266 Inc. (the Debtors) · creditor: Firm Capital Mortgage Fund Inc. · currency: CAD · security: Priority $4,000,000 share of the $6,300,000 principal registered under Instrument No. YR3280094 (LRO #65, July 9, 2021); ranks as a prior encumbrance ahead of Downing Street Financial Inc.'s $2,300,000 share per the registered Additional Provisions