Ontario · Receivership (court-appointed)
Motion Record of DUCA dated October 24, 2023
Application / notice of application · 24 October 2023
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A plain-English summary drawn only from this filing: what it is, why it matters, and the parties, amounts and dates it turns on.
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- applicantDUCA Financial Services Credit Union Ltd.
- courtSUPERIOR COURT OF JUSTICE
- court file noCV-23-00001282-0000
- appointeeMSI SPERGEL INC.
- appointee roleProposed Receiver
- commencement date24 October 2023
- unsecured creditorsnote: Approximate figure ('about $42,553.42') as reported by counsel, no exact dated statement provided. Global Fuels Inc. stopped supplying fuel as of December 2022 due to these arrears (contract not yet terminated as at Sept 22, 2023) and registered a Notice under Section 71 of the Land Titles Act on title of the Property (Instrument No. SC1964252, nominal $1 shown on parcel register) without DUCA's consent, asserting an interest in the Property; the Notice does not evidence a mortgage/PPSA security interest and the underlying claim arises from an unpaid supply contract. · page: 20 · basis: Arrears reported via counsel correspondence (Scarfone Hawkins LLP) under a Fuel Supply Contract dated October 1, 2018; described in affidavit as 'the Debtor owes about $42,553.42' · amount: 42553.42 · debtor: 2644833 Ontario Inc. · creditor: Global Fuels Inc. · currency: CAD
- unsecured creditorsnote: Preferred claim - municipal property tax arrears (including penalties); non-payment of Taxes as they fall due constitutes a default under the DUCA Commitment. · page: 97 · as of: 2023-09-15 · basis: Realty Tax Certificate - Statement of Arrears and Statement of Current Taxes, Balance Due as certified · amount: 31035.56 · debtor: 2644833 Ontario Inc. · creditor: Township of Oro-Medonte · currency: CAD
- secured creditorsnote: $1,300,000.00 is the registered principal amount of the mortgage, not a stated outstanding balance. Registered without DUCA's prior written consent, in breach of DUCA's Undertaking Regarding Further Encumbrances and Commitment Letter; not discharged as of the affidavit date (Oct 20, 2023). · page: 109 · debtor: 2644833 Ontario Inc. · creditor: Mijar Limited · currency: CAD · security: Second mortgage/Charge registered as Instrument No. SC1865825 on January 31, 2022 (also referenced as registered Jan 31, 2023 in affidavit), registered principal amount $1,300,000.00, 8.0% per annum, balance due date extended to January 25, 2024 per Notice/Agreement Amending Charge/Mortgage; also registered Notice of Assignment of Rents (Instrument No. SC1865826) and a Notice under s.71 Land Titles Act (Instrument No. SC1962289). Ranks behind DUCA per PPSA search and behind DUCA as first mortgagee per parcel register (page 16/original p.16). Covenantor/guarantor: Aminullah Nawrozada (personal guarantee, related party - sole director/officer of debtor).
- secured creditorsnote: Demand letter of Sept 14, 2023 states indebtedness as at Sept 13, 2023 of $2,121,932.33, comprising principal $2,120,953.13 plus accrued interest to Sept 13, 2023 of $979.20, interest accruing at 4.25% per annum, per diem $244.80; this exact dated balance supersedes the round $2,250,000 'Mortgage Loan' figure used in the Commitment/security documents. Note: the same demand letter also refers, inconsistently, to a 'collateral mortgage in the amount of $2,500,000' registered against the Property, which does not match the $2,250,000 principal stated in the registered Charge/Mortgage (Instrument SC1770188) and Commitment Letter. · page: 185 · as of: 2023-09-13 · amount: 2121932.33 · debtor: 2644833 Ontario Inc. · creditor: DUCA Financial Services Credit Union Ltd. · currency: CAD · security: First registrant on PPSA search; General Security Agreement dated March 24, 2021; Charge/Mortgage registered as Instrument No. SC1770188 on April 9, 2021 in principal amount of $2,250,000.00 (the 'Mortgage Loan'); Undertaking re: further encumbrances dated March 24, 2021; Unlimited Guarantee of Aminullah Nawrozada dated March 24, 2021 (personal guarantor, related party - sole director/officer of debtor)