Ontario · Receivership (court-appointed)
Responding Motion Record, dated October 13, 2026
Application / notice of application · 13 October 2026
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 filing5 verified
- financial positionnote: Not a balance sheet. Total liabilities are not stated. Stated figures: investors contributed approx. $86M in invested capital; deponent estimates investor equity today at approx. $50M on an appraisal basis and approx. $25M-$30M at current market sale prices (deponent's estimate). The seven REIT Properties represent more than 40% of the District REIT's property assets, with aggregate appraised value $84,475,000 against total registered mortgage debt of approx. $69,697,105 (incl. Riddell Gardens second mortgage). The Respondents' receivership cost estimate is $1M-$2M, and a 10%-20% forced-sale discount is estimated to remove approx. $7.2M-$14.3M (paragraph 4(c)) or $8.4M-$16.8M (paragraph 45, applied to $84M) of value; the document states both ranges. 40 Beaty/Gamble Toronto Properties face a projected CMLS shortfall of approx. $5,917,142. · page: 9 · as at: 2025-12-31 · basis: Appraised value of the District REIT's 28-property portfolio as of December 31, 2025, as stated in the responding affidavit (appraisals by Cushman & Wakefield for the seven REIT Properties) · scope: District REIT (DRLP / DRGP) portfolio of 28 properties; not a consolidated balance sheet of all Corporate Respondents · currency: CAD · total assets: 218360000
- secured creditorsnote: Creditor is not named; second-ranking behind CMLS. Respondents are in discussions with this holder regarding a potential purchase of Riddell Gardens. The $2.97M difference is an inference from stated totals, not a stated figure; amount left null. · page: 13 · as of: December 31, 2025 · debtor: Riddell District Inc. · creditor: Second mortgage holder on Riddell Gardens (unnamed) · currency: CAD · security: Second mortgage on Riddell Gardens (225 Riddell Street, Woodstock). Total registered mortgage debt on the seven REIT Properties including this second mortgage is approx. $69,697,105 (versus first-mortgage principal of approx. $66,729,363), implying roughly $2.97M of other registered mortgage debt, but the document does not itemise the second mortgage amount.
- unsecured creditorsnote: No amount stated on these pages; the text of the paragraph is cut off before the amount (it falls on page 12, which is not provided). Municipal tax arrears are typically a priority claim; the document does not classify them as preferred or unsecured here. · page: 13 · basis: Paragraph 22 (page 13): arrears described as 'modest relative to the value of the Mortgaged Properties' and to be paid from sale proceeds on closing · creditor: Municipalities (property tax arrears, unnamed) · currency: CAD
- secured creditorsnote: Amount left null: the deponent disputes the creditor's claimed figure. CMLS (per Burt Affidavit) claims approx. $78.8M owing in total across all eight properties, without separating principal, interest, default interest, fees or credits; the deponent says a detailed payout statement is required. Deponent states CMLS's claim on the seven REIT Properties is approx. $68.9M including interest and other amounts. The deponent's own records show first-mortgage principal on the seven REIT Properties of approx. $66.7M as at Sept 30, 2026 (excluding interest and penalties). Respondents do not dispute payments are in arrears. Projected shortfall of approx. $5,917,142 on the three Toronto Properties (respondents' estimate), with approx. $7,854,916 projected surplus on four other REIT Properties outside CMLS's security. Respondents offer additional mortgages over Westbridge, Riddell Gardens, Jack Street Properties and Wonderland Path (offer only, not granted). Per paragraph 34, CMLS was repaid in full on Ayr Apartments and received approx. $860,000 applied to arrears as of June 2026. · page: 14 · debtor: Corporate Respondents (seven REIT Properties: Wonderland Path, 15 Gamble, 33 Gamble, 40 Beaty, Westbridge, Riddell Gardens, Jack Street Properties) plus Woodhaven Property · creditor: CMLS Financial Ltd. · currency: CAD · security: Registered first-ranking mortgages on each of the eight Mortgaged Properties plus GSAs registered under PPSA; mortgages said to be CMHC-insured (on information from Lou Falco). Outstanding first-mortgage principal on the seven REIT Properties approx. $66,729,363 (page 14 table by property: Riddell Gardens $10,518,324; Wonderland Path $16,646,591; Westbridge $5,131,979; 40 Beaty $7,089,215; 15 Gamble $9,329,286; 33 Gamble $10,680,186; Jack Street Properties $7,333,782). Appraised value of the seven REIT Properties $84,475,000 as at Dec 31, 2025 (Cushman & Wakefield).
- secured creditorsnote: Appears on the insurance certificate (Exhibit A) as mortgagee, consistent with CMLS's mortgage security. No amount stated. · page: 29 · debtor: Jack Property District Inc. (33 and 45 Jack Street, Saint John) · creditor: Computershare Trust Company of Canada c/o CMLS Financial Ltd. · currency: CAD · security: Named 1st Mortgagee and additional insured on the property insurance policy (Co-operators Policy No. 4002379130) for 33 and 45 Jack Street, Saint John.