Ontario · Receivership (court-appointed)
Second Report of the Receiver dated February 11, 2019
Court officer report · 11 February 2019
Also filed as: Second Report of the Receiver dated February 11, 2019; Second Report of the Receiver dated February 11, 2019
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 filing26 verified
- appointeeKSV Kofman Inc.
- appointee roleReceiver and Manager
- courtONTARIO SUPERIOR COURT OF JUSTICE (COMMERCIAL LIST)
- court file noCV-17-11689-00CL
- commencement date2 February 2017
- secured creditorsnote: Principal only, per unaudited table of the Textbook Entities' secured obligations (in $000s). · page: 17 · as of: Fourth Report dated June 6, 2017 · amount: 10806000 · debtor: Textbook (774 Bronson Avenue) Inc. · creditor: Trustee Corporation (syndicated mortgage investment raised from Investors) · currency: CAD · security: Syndicated mortgage advanced under Loan Agreement; Trustee Corporation was to hold a second-ranking security interest behind the existing mortgage (footnote, p. 54)
- secured creditorsnote: Principal only (in $000s table). Other Lender obligations are understood to rank in priority to the Trustee Corporations (p. 5). · page: 17 · as of: Fourth Report dated June 6, 2017 · amount: 5700000 · debtor: Textbook (774 Bronson Avenue) Inc. · creditor: Vector Financial Services Ltd. · currency: CAD · security: Mortgage (Other Lender)
- secured creditorsnote: Principal only (in $000s table). Other Lender obligations are understood to rank in priority to the Trustee Corporations (p. 5). · page: 17 · as of: Fourth Report dated June 6, 2017 · amount: 3500000 · debtor: Textbook Ross Park Inc. · creditor: 2377358 Ontario Ltd. and Creek Crest Holdings Inc. · currency: CAD · security: Mortgage (Other Lender); the table names both entities together as mortgagee for this single amount
- secured creditorsnote: Principal only, per unaudited table of the Textbook Entities' secured obligations (in $000s). · page: 17 · as of: Fourth Report dated June 6, 2017 · amount: 11617000 · debtor: Textbook Ross Park Inc. · creditor: Trustee Corporation (syndicated mortgage investment raised from Investors) · currency: CAD · security: Syndicated mortgage advanced under Loan Agreement; Trustee Corporation was to hold a second-ranking security interest behind the existing mortgage (footnote, p. 54)
- secured creditorsnote: Principal only, per unaudited table of the Textbook Entities' secured obligations (in $000s). No Other Lender mortgage stated for this entity. · page: 17 · as of: Fourth Report dated June 6, 2017 · amount: 7927000 · debtor: Textbook (555 Princess Street) Inc. · creditor: Trustee Corporation (syndicated mortgage investment raised from Investors) · currency: CAD · security: Syndicated mortgage advanced under Loan Agreement; Trustee Corporation was to hold a first-ranking security interest (footnote, p. 54)
- secured creditorsnote: Principal only, per unaudited table of the Textbook Entities' secured obligations (in $000s). No Other Lender mortgage stated for this entity. · page: 17 · as of: Fourth Report dated June 6, 2017 · amount: 6387000 · debtor: Textbook (525 Princess Street) Inc. · creditor: Trustee Corporation (syndicated mortgage investment raised from Investors) · currency: CAD · security: Syndicated mortgage advanced under Loan Agreement; Trustee Corporation was to hold a first-ranking security interest (footnote, p. 54)
- secured creditorsnote: Principal only, per unaudited table of the Textbook Entities' secured obligations (in $000s). · page: 17 · as of: Fourth Report dated June 6, 2017 · amount: 8397000 · debtor: Textbook (445 Princess Street) Inc. · creditor: Trustee Corporation (syndicated mortgage investment raised from Investors) · currency: CAD · security: Syndicated mortgage advanced under Loan Agreement; Trustee Corporation was to hold a second-ranking security interest behind the existing mortgage (footnote, p. 54)
- secured creditorsnote: Principal only (in $000s table). Other Lender obligations are understood to rank in priority to the Trustee Corporations (p. 5). Kingsett, as a secured creditor of 445 Princess, brought the January 2018 motion for the 445 Receivership Order (p. 4). · page: 17 · as of: Fourth Report dated June 6, 2017 · amount: 7000000 · debtor: Textbook (445 Princess Street) Inc. · creditor: Kingsett Mortgage Corporation · currency: CAD · security: Mortgage (Other Lender)
- secured creditorsnote: Principal only (in $000s table). STATUS: subsequently REPAID (principal, interest and fees) out of a Court-ordered super-priority MarshallZehr Group Inc. receivership loan of $1.662 million (p. 18); not a current obligation to this mortgagee. · page: 18 · as of: Fourth Report dated June 6, 2017 · amount: 1250000 · debtor: Memory Care Investments (Oakville) Ltd. · creditor: 2174217 Ontario Inc. · currency: CAD · security: Mortgage (Other Lender)
- secured creditorsnote: Present secured obligations, principal only, per unaudited table of the Memory Care Entities (in $000s). · page: 18 · as of: Fourth Report dated June 6, 2017 · amount: 9063000 · debtor: Memory Care Investments (Oakville) Ltd. · creditor: Trustee Corporation (syndicated mortgage investment raised from Investors) · currency: CAD · security: Syndicated mortgage advanced under Loan Agreement; Loan Agreement prohibited granting first-ranking security to any other lender except construction financing (p. 19)
- secured creditorsnote: Principal only (in $000s table). STATUS: subsequently REPAID (principal, interest and fees) out of a Court-ordered super-priority MarshallZehr Group Inc. receivership loan of $1.775 million (p. 18); not a current obligation to this mortgagee. · page: 18 · as of: Fourth Report dated June 6, 2017 · amount: 1250000 · debtor: 1703858 Ontario Inc. (Burlington) · creditor: 2174217 Ontario Inc. · currency: CAD · security: Mortgage (Other Lender)
- secured creditorsnote: Present secured obligations, principal only, per unaudited table of the Memory Care Entities (in $000s). · page: 18 · as of: Fourth Report dated June 6, 2017 · amount: 8303000 · debtor: 1703858 Ontario Inc. (Burlington) · creditor: Trustee Corporation (syndicated mortgage investment raised from Investors) · currency: CAD · security: Syndicated mortgage advanced under Loan Agreement; Loan Agreement prohibited granting first-ranking security to any other lender except construction financing (p. 19)
- secured creditorsnote: Principal only (in $000s table). STATUS: subsequently REPAID (principal, interest and fees) out of a Court-ordered super-priority MarshallZehr Group Inc. receivership loan of $1.475 million (p. 18); not a current obligation to this mortgagee. · page: 18 · as of: Fourth Report dated June 6, 2017 · amount: 950000 · debtor: Memory Care Investments (Kitchener) Ltd. · creditor: 2174217 Ontario Inc. · currency: CAD · security: Mortgage (Other Lender)
- secured creditorsnote: Present secured obligations, principal only, per unaudited table of the Memory Care Entities (in $000s). · page: 18 · as of: Fourth Report dated June 6, 2017 · amount: 10577000 · debtor: Memory Care Investments (Kitchener) Ltd. · creditor: Trustee Corporation (syndicated mortgage investment raised from Investors) · currency: CAD · security: Syndicated mortgage advanced under Loan Agreement; Loan Agreement prohibited granting first-ranking security to any other lender except construction financing (p. 19)
- secured creditorsnote: Stated as 'Scollard borrowed $13.596 million from Investors' - principal borrowed. · page: 19 · as of: Fourth Report dated June 6, 2017 · amount: 13596000 · debtor: Scollard Development Corporation · creditor: Investors (syndicated mortgage, advanced via the applicable Trustee Corporation) · currency: CAD · security: Syndicated mortgage under Loan Agreement; Loan Agreement prohibits granting first-ranking security to any other lender except construction financing (p. 19)
- secured creditorsnote: Stated as 'Legacy Lane borrowed $3.478 million from Investors' - principal borrowed. The document states 'Legacy Lane has no other secured obligations.' · page: 19 · as of: Fourth Report dated June 6, 2017 · amount: 3478000 · debtor: Legacy Lane Investments Ltd. · creditor: Investors (syndicated mortgage, advanced via the applicable Trustee Corporation) · currency: CAD · security: Syndicated mortgage under Loan Agreement
- secured creditorsnote: Stated total, approximate ('totalling approximately $800,000'). Receiver's counsel is reviewing the lien claims to determine their validity and priority - not yet confirmed. · page: 19 · as of: Fourth Report dated June 6, 2017 · amount: 800000 · debtor: Scollard Development Corporation · creditor: Lien claimants (three liens registered on title; claimants not named) · currency: CAD · security: Three liens registered on title against the Scollard Real Property
- secured creditorsnote: Approximate ('in the approximate amount of $2.5 million'). STATUS: REPAID during the receivership from the Downing Street Financial Inc. $3.5 million super-priority Court-ordered receiver's borrowing (p. 19); not a current obligation. · page: 19 · as of: Fourth Report dated June 6, 2017 · amount: 2500000 · debtor: Scollard Development Corporation · creditor: Firm Capital Mortgage Corporation · currency: CAD · security: Mortgage
- secured creditorsnote: Stated as 'McMurray borrowed $3.5 million from Investors' - principal borrowed. · page: 20 · as of: Fourth Report dated June 6, 2017 · amount: 3500000 · debtor: McMurray Street Investments Inc. · creditor: Investors (syndicated mortgage, advanced via the applicable Trustee Corporation) · currency: CAD · security: Syndicated mortgage under Loan Agreement; Loan Agreement prohibits granting first-ranking security to any other lender except construction financing (p. 20)
- secured creditorsnote: 'McMurray has a mortgage owing in the amount of $2 million to Pillar Financial Services Inc.' The Receiver has not been able to trace the mortgage proceeds received from Pillar into McMurray's bank statements. · page: 20 · as of: Fourth Report dated June 6, 2017 · amount: 2000000 · debtor: McMurray Street Investments Inc. · creditor: Pillar Financial Services Inc. · currency: CAD · security: Mortgage
- secured creditorsnote: Approximate: 'secured debt obligations of the Receivership Companies currently total approximately $60,243,000, including approximately $54,231,000 owing to the Trust Companies ... and the balance owing to other lenders, primarily mortgagees.' Reflects an initial distribution of approximately $5.1 million to the Scollard Trust Co. from the Court-approved sale of the Scollard property (footnote, p. 91). The claim states the real properties, collectively purchased for approximately $13,455,000, are virtually the only valuable assets available to satisfy these obligations. The Report's own background separately states aggregate principal borrowings of all eleven Receivership Companies of approximately $119.940 million ($93.675 million to the Trustee Corporations and $23.675 million to Other Lenders, which rank in priority) (p. 5); Investors holding through an RRSP have their mortgage with Olympia Trust instead of the applicable Trustee Corporation (p. 4). Aggregate - do not sum with the itemised per-entity entries. · page: 91 · as of: Fresh as Amended Statement of Claim (leave to amend granted August 31, 2017) · amount: 54231000 · debtor: Receivership Companies (collectively, as defined in the Fresh as Amended Statement of Claim) · creditor: Trust Companies (Trustee Corporations) - aggregate per Fresh as Amended Statement of Claim · currency: CAD · security: Syndicated mortgages (monies raised by the Trust Companies from investors)