Ontario · Receivership (court-appointed)
Application to Appoint Receiver returnable May 4, 2020
Application / notice of application · 1 May 2020
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 filing16 verified
- applicantMELVYN EISEN, TRUSTEE
- commencement date1 May 2020
- courtONTARIO SUPERIOR COURT OF JUSTICE (COMMERCIAL LIST)
- court file noCV-20-00640347-00CL
- statutory basisSection 243(1) of the Bankruptcy and Insolvency Act and Section 101 of the Courts of Justice Act
- appointee rolereceiver and manager
- appointeeRosen Goldberg Inc.
- secured creditorsnote: Demand amount = $11,500,000 principal + $166,985.75 interest (Mar 1 to Apr 24, 2020) + $4,520 appraisal costs + $15,000 costs. The affidavit also states a default of $11,662,601.96 as of April 1, 2020. Mortgage ranks first by postponements, with the possible exception of two construction liens for holdback deficiencies. Debtor consented to immediate enforcement on April 24, 2020. · page: 8 · as of: 2020-04-23 · amount: 11666985.75 · debtor: DIAM Danforth Property Inc. · creditor: Melvyn Eisen, Trustee (Melvyn D. Eisen) — first mortgage and GSA lender (99.56% direct; remaining 0.44% transferred from Community Trust Company on April 22, 2020) · currency: CAD · security: Mortgage on 2359 Danforth Avenue, Toronto (dated Feb 29, 2019) and General Security Agreement (dated Feb 17, 2019; PPSA file 748765341 registered Mar 4, 2019). Amount borrowed under the Jan 16, 2019 commitment letter: $11,500,000.
- secured creditorsnote: The affiant states the Eisen loan was in part to redeem a First National mortgage then in default; current status of First National's security (discharged or outstanding) is not stated. Not reported as a current balance. · page: 33 · debtor: DIAM Danforth Property Inc. · creditor: Related PPSA/mortgage position of First National Financial GP Corporation (prior lender) · currency: CAD · security: PPSA registrations 20170425 1613/1614/1615 1590 2468-2470 referenced in the subordination change statement
- unsecured creditorsnote: Regulatory exposure, not an existing debt. The City intends to contract for backfilling if the Order is not complied with; affiant states those costs would take priority over his security. Affiant refers to a remedial contract of more than $2 million discussed by the engineer, which is not a stated claim. · page: 38 · basis: Regulatory quasi-debt: Order to Remedy Unsafe Building dated April 17, 2020 (Building Code Act, s. 15.9(4)) · debtor: DIAM Danforth Property Inc. · creditor: City of Toronto — potential backfilling costs under Order to Remedy Unsafe Building · currency: CAD
- unsecured creditorsnote: Municipal taxes owing; prior-ranking claim on the Land and an event of default under the mortgage and GSA. Municipal tax priority class, not ordinary unsecured. · page: 39 · as of: 2020-04-27 · basis: Tax certificate dated April 27, 2020 (Exhibit O) · amount: 104671.02 · debtor: DIAM Danforth Property Inc. · creditor: City of Toronto — municipal property taxes · currency: CAD
- secured creditorsnote: Amount not stated. Ranking not stated; the affiant has had no communication with this party. · page: 40 · debtor: DIAM Danforth Property Inc. · creditor: Thrive Capital Management Limited — chargee on the Land · currency: CAD · security: Charge registered on the Land on July 29, 2019
- secured creditorsnote: Amount is the claimed lien amount, registered April 7, 2020; the claim has not been adjudicated and ranking relative to the mortgage is not stated beyond holdback-deficiency lien comments. · page: 41 · as of: 2020-04-07 · amount: 1263935 · debtor: DIAM Danforth Property Inc. · creditor: Gillam Group Ltd. — construction lien claimant · currency: CAD · security: Construction lien registered on the Land on April 7, 2020
- secured creditorsnote: Amount not stated. Affiant has been contacted by investors in Olympia Trust Company. · page: 41 · debtor: DIAM Danforth Property Inc. · creditor: Olympia Trust Company — postponed chargee on the Land · currency: CAD · security: Security on the Lands, postponed on February 28, 2019 (subordinate to Eisen mortgage)
- secured creditorsnote: Amount not stated. The Guarantee Company's registration was subordinated/postponed in favour of the First National Financial GP Corporation registrations (change statement of June 30, 2017). Amount not stated. · page: 64 · debtor: DIAM Danforth Property Inc. · creditor: The Guarantee Company of North America — PPSA registrant · currency: CAD · security: PPSA registration 20150612 1225 1590 7583 (file 707060016), collateral classes include inventory and accounts; expires June 12, 2025
- secured creditorsnote: Amount not stated. · page: 69 · debtor: DIAM Danforth Property Inc. · creditor: Royal Bank of Canada — PPSA registrant · currency: CAD · security: PPSA registration 20180716 1433 1530 3606 (file 741642318), collateral classes include inventory and accounts; expires July 16, 2023