Ontario · CCAA
Application Record
Application / notice of application · 15 October 2024
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 filing12 verified
- applicantMizrahi Development Group (1451 Wellington) Inc.
- commencement date15 October 2024
- courtSUPERIOR COURT OF JUSTICE
- court file noBK24-00000230-0033
- appointeeMNP Ltd.
- appointee roleProposed Monitor
- secured creditorsnote: First Lien Indebtedness; guaranteed by Sam Mizrahi (personal guarantee and postponement, related party - principal of Applicant) and by Mizrahi Developments Inc. (MDI, affiliate, limited recourse guarantee); Loan Facilities matured July 1, 2024 following Maturity Date Extensions; interest, fees and costs continuing to accrue · page: 37 · as of: 2024-10-01 · amount: 73146752.97 · debtor: Mizrahi Development Group (1451 Wellington) Inc. (WellingtonCo) · creditor: TCC Mortgage Holdings Inc. (formerly Trez Capital Limited Partnership/Trez Capital (2011) Corporation, the "Construction Lender"; rights assigned by Construction Lender and Computershare Trust Company of Canada to TCC on October 15, 2024) · currency: CAD · security: First Mortgage against the Real Property in favour of Computershare Trust Company of Canada (as agent/bare trustee for Construction Lender), registered October 29, 2019, later amended to increase registered principal to CAD $70,000,000; First Lien Loan Facilities comprised of Construction Loan Facility (max lesser of $67,000,000 or 73.6% of eligible project costs) and Letter of Credit Facility (max $1,000,000), aggregate facility limit $68,000,000
- secured creditorsnote: Second Lien Indebtedness, subordinate to First Lien Security; interest, fees and costs continuing to accrue · page: 38 · as of: 2024-10-01 · amount: 7908211.34 · debtor: Mizrahi Development Group (1451 Wellington) Inc. (WellingtonCo) · creditor: TCC Mortgage Holdings Inc. (formerly Trez Capital, the "Construction Lender"; rights assigned by Construction Lender and Computershare to TCC on October 15, 2024) · currency: CAD · security: Second Mortgage against the Real Property in favour of Computershare, registered December 1, 2021; Second Lien Loan Facility principal amount $6,000,000
- secured creditorsnote: Related party - loan personally to Sam Mizrahi, principal of the Applicant; principal amount of loan was $12,900,000, interest 10% compounded annually; WellingtonCo guaranteed the V2I Loan pursuant to s.9.01 of V2I Loan Agreement · page: 39 · as of: 2024-10-10 · amount: 13300000 · debtor: Sam Mizrahi (personal borrower); Mizrahi Development Group (1451 Wellington) Inc. (WellingtonCo) is guarantor · creditor: V2 Investment Holdings Inc. (V2I) · currency: CAD · security: V2I Debenture granting: (a) charge over the Real Property (V2I Mortgage), registered April 15, 2024 upon default (not registered on title until default occurred); and (b) charge over WellingtonCo's present and future personal property
- secured creditorsnote: No outstanding balance stated - $24,000,000 is the surety facility amount, not a balance; per Priority Agreement dated October 24, 2019 (as amended/restated April 22, 2021 and further priority agreement December 1, 2021), Westmount Security is subordinated and postponed to the Construction Lender's Security, save for deposit monies received from Purchasers and accrued interest thereon; all Pre-Sale deposits (~$14,800,000) have been released to the Borrower · page: 39 · debtor: Mizrahi Development Group (1451 Wellington) Inc. (WellingtonCo) / Applicant · creditor: Westmount Guarantee Services Inc. · currency: CAD · security: Mortgage against the Real Property registered October 29, 2019 (Westmount Security), securing a Surety Facility (deposit insurance) with a facility amount of $24,000,000 pursuant to Commitment Letter Agreement dated December 5, 2018
- secured creditorsnote: Original principal $10,000,000 via two facilities: Berry Loan #1 ($4,000,000) - repaid in full; Berry Loan #2 ($6,000,000) - maturity per s.2.4 was earlier of 45 days post condo registration or December 31, 2021; no current balance stated on these pages (see Exhibit U spreadsheet, not extracted); secured by Berry Loan Guarantees from WellingtonCo and Sam Mizrahi (personal guarantee) for all MDI indebtedness under the Berry Loan; interest rate 14% annually · page: 41 · debtor: Mizrahi Developments Inc. (MDI) · creditor: David Berry · currency: CAD · security: Berry GSA - General Security Agreement over present and after-acquired personal property of MDI and WellingtonCo; Berry A&D - Acknowledgment and Direction annexing a mortgage against the Real Property (held in escrow by Berry's solicitors, not registered unless Berry Loan #1 not repaid within 2 years)
- secured creditorsnote: Original principal advanced was $675,930.46 (Promissory Note, in connection with Brownfield Financial Tax Incentive Program remediation); currently $564,400.20 plus accrued interest owing (stated as of affidavit date, precise date not specified) · page: 41 · as of: 2024-10-15 · amount: 564400.2 · debtor: Mizrahi Development Group (1451 Wellington) Inc. (WellingtonCo) / Applicant · creditor: CWB Maxium Financial Inc. · currency: CAD · security: General Security Agreement dated December 1, 2022 (CWB GSA) granting security interest in WellingtonCo's present and after-acquired personal property, intellectual property, and real/immovable property (freehold and leasehold); registered by PPSA financing statement (Ontario)