Ontario · Receivership (court-appointed)
Supplementary Report to the First Report of the Receiver (for motion returnable November 23, 2023)
Court officer report · 27 October 2023
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 filing8 verified
- secured creditorsnote: Plus accruing interest as of the stated date; Receiver's independent counsel opined the TD Mortgage is valid, enforceable and first-ranking on title. Mr. Joao Paul Henriques (founder/sole director of Images Life Media Inc. and officer/director of 2531509 Ontario Inc.) personally guaranteed the Debtors' obligations to TD Bank (related-party guarantor, not a separate creditor). · page: 2 · as of: 2023-10-05 · amount: 3020170 · debtor: 2531509 Ontario Inc. · creditor: The Toronto-Dominion Bank · currency: CAD · security: First registered mortgage against title to the Walnut Property (113-115 Walnut Avenue, Toronto) (the "TD Mortgage")
- secured creditorsnote: Amount is the registered principal amount at registration; no updated outstanding balance stated. Olympia holds the mortgage in trust for Hannah Smith (beneficial holder). Receiver's counsel confirmed validity/enforceability and second-ranking priority. Given TD Bank's shortfall, the Receiver proposes no distribution to Olympia in respect of this mortgage. · page: 3 · as of: 2022-08-11 · amount: 106000 · debtor: 2531509 Ontario Inc. · creditor: Olympia Trust Company · currency: CAD · security: Second registered mortgage against title to the Walnut Property, ranking after the TD Mortgage (the "Olympia Mortgage")
- secured creditorsnote: Stated as a floor: Debtors owe TD 'in excess of $3.8 million under the Credit Facilities' per the July 18, 2023 Endorsement; distinct from the separately stated TD Mortgage balance on the Walnut Property. Personal guarantee of the Debtors' debts to TD given by Mr. Joao Paul Henriques (founder/director). · page: 8 · as of: 2023-07-18 · amount: 3800000 · debtor: Images Life Media Inc. and 2531509 Ontario Inc. · creditor: The Toronto-Dominion Bank · currency: CAD · security: General Security Agreement (GSA) over all Property, securing five credit facilities in favour of the Debtors; GSA and Mortgage Security both entitle TD to appoint a receiver on default
- process resultsbids: 3 · note: The Realtor sent the marketing package to approximately 9 prospective buyers, received 21 inquiries, conducted 9 tours; the Receiver received 3 offers (two from the same prospective purchaser). · as of: 2023-10-18 · solicited: 9
- purchaserNikesh Rai
- recovery outcomeentries: basis: estimated · quote: The sale proceeds generated from the Transaction are expected to result in a partial payout of the TD Mortgage resulting in TD Bank suffering a shortfall. · pct of: unstated · outcome: shortfall · class key: secured · stated by: receiver · class label: TD Bank (TD Mortgage) · creditor name: TD Bank · interim final: unstated · related party: false · claims qualifier: unstated; basis: unstated · quote: Given that TD Bank will suffer a shortfall in respect of the TD Mortgage, there will be no distribution to Olympia in respect of the Olympia Mortgage. · pct of: unstated · outcome: nil · class key: secured · stated by: receiver · class label: Olympia (Olympia Mortgage) · creditor name: Olympia Trust Company · interim final: unstated · claims qualifier: unstated · stated on: 2023-10-27 · table missing:
- sale advisorLennard Commercial Realty Brokerage
- sale outcometext: The Receiver recommends approval of the Purchase Agreement and the Transaction for the Walnut Property. · scope: parcel · status: pending_approval