Ontario · CCAA
Supplement to the Thirty-Third Report of the Monitor to the Court dated October 19, 2026.pdf
Court officer report · 19 October 2026
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 filing12 verified
- secured creditorsnote: $22,000,000 is the charge amount, not a stated outstanding balance. The Surety subordinated its rights to the Plan Sponsor's Charge under a Priority Agreement dated August 16, 2022 (including costs, fees, protective disbursements and expenses incurred by the Plan Sponsor). DIP agreement describes the Westmount Deposits Mortgage as third-position and fully postponed to the DIP Lender's security. · page: 4 · debtor: Hazelton Development Corporation · creditor: Westmount Guarantee Services Inc. (the Surety) · currency: CAD · security: Charge against the Project Lands in the amount of $22,000,000, ranking fifth under the Sanction Order (security for the excess condominium deposit insurance facility and Tarion warranty bond)
- secured creditorsnote: The ~$4.37 million is the aggregate amount of the bonds, not a determined claim amount. Validity and quantum of lien claims are not yet determined; other Lien Claimants may assert rights in respect of the bonds. Lien Claimants dispute that the Plan Sponsor's Charge outranks their claims. Lien Bonds are not Retained Assets and are unaffected by the proposed ARVO. · page: 5 · debtor: Hazelton Development Corporation · creditor: Lien bond security: City Electric Inc., Stellar Formwork Ltd., Gillam Urban Constructors Inc. (construction lien claims secured by Lien Bonds) · currency: CAD · security: Three Lien Bonds posted under section 44 of the Construction Act (Ontario) in connection with construction lien proceedings by these three claimants, aggregate approximately $4.37 million
- secured creditorsnote: No outstanding balance stated on these pages; $80,000,000 is the borrowing authorization and charge ceiling, not a balance. Loan agreement dated July 5, 2022, originally a DIP commitment dated June 8, 2022 (maturity August 1, 2023 or as extended). Amounts the lender pays to cure liens/encumbrances are added to the secured obligations. The Monitor reports it does not expect the DIP Lender or subordinate stakeholders to be repaid in full from Project proceeds (reported since the Fifteenth Report, Jan 25, 2024). Lien claimants dispute that their claims rank behind this charge. · page: 5 · debtor: Hazelton Development Corporation · creditor: Firm Capital Mortgage Fund Inc. (Plan Sponsor / DIP Lender; Plan Sponsor's Charge) · currency: CAD · security: Plan Sponsor's Charge (court-ordered, first-ranking, maximum $80,000,000) registered on title to the Project Lands as Instrument No. PR4101588, incorporating Standard Charge Terms No. 200033; Plan Sponsor authorized to borrow up to $80,000,000 under the Plan Sponsor Funding Agreement. Related security documents include a GSA, assignments of rents, agreements of purchase and sale, project documents and cash security posted with Tarion, municipalities and financial institutions, plus guarantees from Guarantors.
- unsecured creditorsnote: No amount stated on these pages. Monitor expects purchasers may assert deposit claims against Tarion and/or the Surety; Surety counsel confirmed no concerns regarding facility limits for purchasers with valid claims. The DIP agreement references a deposit threshold of $18,500,000 (a covenant threshold for use of deposits in the Project, not a stated claim balance). · page: 7 · basis: Deposits paid under pre-sale agreements of purchase and sale; Transaction is conditional on termination/disclaimer of remaining Pre-Sale Contracts · debtor: Hazelton Development Corporation · creditor: Pre-Sale Purchasers (deposit claims) · currency: CAD
- secured creditorsnote: Ceiling of the charge, not an outstanding balance. Sanction Order priority list as amended and restated: Plan Sponsor's Charge ($80M), Administration Charge ($300,000), Directors' Charge ($100,000), DIP Lender's Charge ($16M), Westmount charge ($22M), Deposit Refund Charge ($6M). · page: 150 · debtor: Hazelton Development Corporation · creditor: Firm Capital Mortgage Fund Inc. (DIP Lender's Charge) · currency: CAD · security: DIP Lender's Charge, maximum $16,000,000, ranking fourth under the Sanction Order priority waterfall (after the Plan Sponsor's Charge, Administration Charge and Directors' Charge)
- secured creditorsnote: Ceiling of the charge, not an outstanding balance. · page: 151 · debtor: Hazelton Development Corporation · creditor: Firm Capital Mortgage Fund Inc. (Deposit Refund Charge) · currency: CAD · security: Deposit Refund Charge on the Property in favour of the DIP Lender, maximum $6,000,000, ranking sixth; does not secure any obligation existing before the Sanction Order
- operational summaryThe Monitor reports on CRA/MOF positions, Plan Sponsor's Charge documents and lien claimant comments for an approval and reverse vesting order motion. If the order is granted, the Monitor will bankrupt ResidualCo after closing, with lien and pre-sale deposit claims addressed in that bankruptcy and under Tarion/surety processes.
- purchaserFirm Capital Mortgage Fund Inc.
- recovery outcomeentries: basis: plan · quote: shall also distribute to each Affected Creditor with a Voting Claim in the General Unsecured Creditor Class an amount equal to 100% of such Affected Creditor's Voting Claim · pct of: unstated · outcome: paid_in_full · pct low: 100 · pct high: 100 · class key: unsecured · stated by: debtor · class label: each Affected Creditor with a Voting Claim in the General Unsecured Creditor Class · interim final: unstated · conditional on: Plan approved by the Required Majority in both the Depositor Creditor Class and the General Unsecured Creditor Class and Sanction Order granted; paid once the Highlight Project has achieved 90% occupancy, Secured Creditors have been paid in full, and the Applicant has sufficient liquidity as determined by the Monitor · claims qualifier: unstated · stated on: 2026-10-19 · table missing:
- report date19 October 2026
- report noSupplement to the Thirty-Third Report of the Monitor
- sale outcometext: The Monitor's motion for approval of the Transaction with Firm Capital and an approval and reverse vesting order was scheduled to be heard October 1, 2026; the Transaction is conditional on termination and disclaimer of the remaining Pre-Sale Contracts, and closing had not yet occurred. · scope: whole_business · status: pending_approval