Ontario · Receivership (court-appointed)
First Report of the Receiver, dated April 9, 2024
Court officer report · 9 April 2024
What we verified from this filing10 verified
- secured creditorsnote: DISCHARGED / paid in full - Firm Capital recovered the entirety of amounts owed to it under Facility A between March 2020 and November 2023 through power of sale; security subsequently assigned to MarshallZehr shortly before Receiver's appointment. No outstanding balance remains with Firm Capital. · page: 4 · debtor: King Square Ltd. and Markland Residential Corporation · creditor: Firm Capital Mortgage Fund Inc. · currency: CAD · security: Registered first ranking charge against King Square Property and second ranking charge against Development Land; total facility maximum (Facility A $50,000,000 + Facility B $32,200,000) = $82,200,000 face amount
- secured creditorsnote: Face amount recorded as 'Unknown' per Receiver's review of title. · page: 4 · debtor: King Square Ltd. · creditor: Ontario Superior Court of Justice on behalf of FAAN Mortgage Administrators Inc. · currency: CAD · security: Seventh ranking registered charge against King Square Property; face amount unknown
- secured creditorsnote: FAAN Mortgage Administrators Inc., court-appointed trustee of BDMC representing 176 individual retail investors, advised the Receiver that BDMC is owed approximately $8.5 million, consistent with the registered face amount. · page: 4 · amount: 8562687 · debtor: King Square Ltd. · creditor: Building & Development Mortgages Canada Inc. (Centro Mortgage Inc.) and Olympia Trust Company (BDMC) · currency: CAD · security: Third ranking charge against King Square Property, face amount $8,562,687
- secured creditorsnote: Face amounts are registered mortgage principal amounts; no balance stated. · page: 4 · debtor: King Square Ltd. and Markland Residential Corporation · creditor: OYSX Inc. · currency: CAD · security: Fourth ranking charge against King Square Property (face amount $5,000,000); fourth ranking charge against Development Land (face amount $6,000,000)
- secured creditorsnote: Face amounts are registered mortgage principal amounts, not stated balances; original lender First Source Mortgage Corporation, subsequently transferred through 2198136 Ontario Ltd. to Wu Family Holdings/Wu Family Holdings Inc. · page: 4 · debtor: King Square Ltd. and Markland Residential Corporation · creditor: First Source Mortgage Corporation (as transferred to 2198136 Ontario Ltd., as transferred to Wu Family Holdings / Wu Family Holdings Inc.) · currency: CAD · security: Fifth ranking charge ($7,000,000 face amount) and sixth ranking charge ($7,000,000 face amount) against King Square Property; fifth ranking charge ($7,000,000 face amount) against Development Land
- secured creditorsnote: Face amount is registered mortgage principal, not a stated balance. · page: 5 · debtor: Markland Residential Corporation · creditor: Stateview Homes Inc. · currency: CAD · security: Sixth ranking charge against Development Land, face amount $4,500,000
- secured creditorsnote: Aviva provided deposit insurance to King Square indemnifying purchaser deposit losses; face amounts of registered mortgages are registration ceilings, not balances. Aviva has paid out one claim to date in the amount of approximately $579,000. · page: 6 · amount: 579000 · debtor: King Square Ltd. · creditor: Aviva Insurance Company of Canada · currency: CAD · security: Second ranking mortgage on King Square Property (registered face amount $50,000,000) and third ranking mortgage on Development Land (registered face amount $5,000,000)
- secured creditorsnote: Approximately $52 million for principal and interest as at date of Receiver's appointment. Originally co-lender under the Firm Loan (Facility B), fully postponed to Firm Capital under Co-Lending Agreement dated January 27, 2017; Firm Capital recovered entirety of Facility A and, pursuant to an Assignment of Debt and Security Agreement, assigned its security to MarshallZehr shortly prior to Receiver's appointment. · page: 6 · as of: date of appointment of Receiver (December 13, 2023) · amount: 52000000 · debtor: King Square Ltd. and Markland Residential Corporation · creditor: MarshallZehr Group Inc. · currency: CAD · security: First ranking charge against King Square Property and second ranking charge against Development Land (security assigned from Firm Capital shortly before Receiver's appointment)
- secured creditorsnote: As at December 31, 2023, the Am-Stat loan was approximately $21 million, including accrued interest to November 30, 2023, but excluding additional costs, fees, charges and accrued interest from and after December 1, 2023. · page: 7 · as of: 2023-12-31 · amount: 21000000 · debtor: Markland Residential Corporation · creditor: Am-Stat Corporation · currency: CAD · security: First ranking mortgage against Development Land, registered principal $20,000,000
- secured creditorsnote: Default judgment dated January 3, 2024 in the amount of $6.5 million plus costs (costs amount unstated); judgment obtained against King Square, Markland and two other related party defendants. · page: 7 · as of: 2024-01-03 · amount: 6500000 · debtor: King Square Ltd., Markland Residential Corporation and two other related party defendants · creditor: Gouping Li · currency: CAD · security: Certificate of Pending Litigation, subordinate to all prior ranking registrations against both King Square Property and Development Land