Ontario · Receivership (court-appointed)
The purpose of this First Report is to: (a) provide a summary of the background of the Company; (b) provide a summary of the offer received for the purchase of Rosehill (as defined below) and the status of that potential transaction; (c) report on the activities of the Receiver since its appointment; (d) provide information in support of the Receiver’s request for Court approval of the activities of the Receiver as described in this First Report; and (e) provide information in support of the Receiver’s request for Court approval to engage a real estate broker and to enter into a marketing and sale process (the “Sale Process”) for the Property to be undertaken by the Receiver as described herein
Court officer report · 7 September 2022
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What we verified from this filing4 verified
- secured creditorsnote: Amount not stated; relates to deposits from pre-sale of 60 residential suites and one commercial unit. · page: 3 · debtor: 2735447 Ontario Inc. · creditor: Tarion · currency: CAD · security: First charge on purchaser deposits held in trust by Schneider Ruggiero Spencer Milburn LLP
- secured creditorsnote: Outstanding principal balance including $1.0M letter of credit facility, as of Sept 1, 2022 (maturity date). Original commitment was $5.9 million principal loan plus $1.0 million letter of credit facility per commitment letter dated Dec 6, 2021 and amendment Jan 20, 2022. Notice of default and acceleration issued Aug 10, 2022. Trez Mortgage matured and remains secured by first charge; Receiver's Borrowing Charge is subordinate to this security. · page: 6 · as of: 2022-09-01 · amount: 6837073.67 · debtor: 2735447 Ontario Inc. · creditor: Trez Capital Limited Partnership · currency: CAD · security: First charge (mortgage) on the Lands
- secured creditorsnote: Related party (JV Party) to the Company. Principal amount advanced was $7,628,751 per financing commitment letter dated Jan 6, 2020 and amendments Jan 15, 2021 and July 16, 2021 - this is the stated original advance/principal, not a dated outstanding balance. Receiver has not yet performed independent security review of validity/priority. · page: 6 · debtor: 2735447 Ontario Inc. · creditor: 2735440 Ontario Inc. ("273") · currency: CAD · security: Second ranking charge (mortgage) on the Lands; also general security agreement dated January 15, 2020 over all personal and after-acquired property of the Company
- secured creditorsnote: Disputed claim: Capital Build asserts its construction lien has priority over the 273 Mortgage; Receiver has not validated the claim or determined priority. Statement of claim filed July 25, 2022 to perfect the lien despite the stay of proceedings; further steps held in abeyance during stay. Related party: Capital Build owned/managed by Respondents Michael Smith and Frank Servello. · page: 6 · as of: 2022-04-29 · amount: 2000667 · debtor: 2735447 Ontario Inc. · creditor: Capital Build Construction Management Corp. · currency: CAD · security: Registered construction lien on title to the Lands