Quebec · Receivership (court-appointed)
Motion to Appoint a Receiver and Contestation
Application / notice of application · 23 March 2022
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What we verified from this filing12 verified
- applicantROMSPEN INVESTMENT CORPORATION
- appointeeMNP LTD.
- appointee roleProposed Receiver
- courtSUPERIOR COURT
- court file no500-11-060843-220
- provinceQUEBEC
- statutory basiss. 31(1) and 243 of the Bankruptcy and Insolvency Act, RSC 1985, c B-3
- secured creditorsnote: Related party — DLE is principal shareholder of 105 and limited partner of Flora; amount of its claim not stated · page: 6 · debtor: 10542113 Canada Inc. / Flora I Limited Partnership · creditor: Développement Lachine Est Inc. (DLE) · currency: CAD · security: Security subordinated to Romspen via assignments of rank contained in the Deed of Loan and Hypothecs
- secured creditorsnote: Security published earlier than Romspen's but subordinated to Romspen via assignments (cession) of rank; amount of claim not stated in this document · page: 6 · debtor: 10542113 Canada Inc. / Flora I Limited Partnership · creditor: Aviva Insurance Company of Canada · currency: CAD · security: Hypothec/security registered at Land Registry (Sept 19, 2019 and Jan 27, 2020) and RPMRR, over the Flora Property
- secured creditorsnote: $52,325,000 is the registered hypothec ceiling, not the outstanding balance. Earlier exact balance stated in Prior Notice: $14,436,900.94 as at May 25, 2021 (superseded by later advances under Forbearance Agreement). Guarantors of the debt include Paolo Catania, Développement Lachine Est Inc. (DLE), Philip Kerub and HRM Projet Villanova Inc. (personal/corporate guarantees; HRM Projet and Kerub solidarily liable for 50% of outstanding indebtedness). · page: 9 · as of: 2021-12-31 · amount: 21682685.87 · debtor: Flora I Limited Partnership (and 10542113 Canada Inc., co-borrower) · creditor: Romspen Investment Corporation · currency: CAD · security: First-ranking conventional hypothec (Deed of Loan and Immovable and Movable Hypothecs and Cession of Rank, as amended) registered for $52,325,000 over the Flora Property, present/future rents, insurance proceeds, and all movable property of the Debtors
- secured creditorsnote: Disputed/contested claim — Flora vigorously disputes Upbrella's status as a creditor, alleging Upbrella instead owes Flora approximately $13,062,060 and has no valid claim or hypothec; claim also alleged to be duplicative of subcontractors' claims listed separately (see legal hypothec holders entry); Romspen states Upbrella 'cannot be presumed to hold any valid claims against Flora, secured or otherwise.' · page: 14 · amount: 9714431 · debtor: Flora I Limited Partnership · creditor: 9186-9297 Québec Inc. (Upbrella) · currency: CAD · security: Alleged legal hypothec of construction on the Flora Property
- secured creditorsnote: Total of $11,996,305 as stated in the document (table total, not computed by extractor). Document states this total represents duplication, as several holders' claims overlap with subcontractors' claims and with Upbrella's disputed claim. A subset of these creditors (Acier Métaux-Spec Inc., Construction Altar, Construction Deric Inc., Édouard Beauchesne (1985) Inc., Lavallée-Dufour Inc., Le Groupe DR Électrique Inc., Produits Métalliques Bailey Ltée) had asserted claims aggregating 'exceeding $4.5 million' and were subject to ongoing settlement funded by Romspen as of the filing date; other holders' claims remain outstanding. · page: 14 · as of: registrations dated 2021-04-06 to 2022-02-09 (per index of immovables R-13) · amount: 11996305 · debtor: Flora I Limited Partnership · creditor: Holders of legal hypothecs of construction (unpaid subcontractors on Flora Property) · currency: CAD · security: Individual legal hypothecs of construction registered against the Flora Property, listed by registration number/date/creditor in a table (30 registrants)