Ontario · Receivership (court-appointed)
Second Report of the Receiver dated January 7, 2025
Court officer report · 7 January 2025
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What we verified from this filing4 verified
- secured creditorsnote: Amount is approximate, as advised by MarshallZehr ('owed approximately $15.6 million' as at January 2, 2025); the Receiver understands interest, fees and costs continue to accrue. Debtors in default of payment obligations to MarshallZehr since November 2023. Personal guarantees exist (two individual guarantors: Hunter Milborne and Marcus Gillam). Separately and post-appointment, MarshallZehr advanced $200,000 to the Receiver secured by the Receiver's Borrowing Charge under the Receivership Order (not included in the amount). MarshallZehr will suffer a shortfall on the net sale proceeds of the $13,000,000 Transaction, and no distributions will be available to other creditors. · page: 6 · as of: 2025-01-02 · amount: 15600000 · debtor: 98 James South (2022) Inc. and 98 James South (2022) Limited Partnership · creditor: MarshallZehr Group Inc. · currency: CAD · security: MarshallZehr Security for the Loan advanced pursuant to a commitment letter dated August 19, 2022: (i) first-ranking mortgage registered against title to the Real Property dated September 9, 2022 (charge registered in the amount of C$13,200,000 - registration amount, not a balance); (ii) general assignment of rents; and (iii) general security agreement. Independent review by Fasken concluded the MarshallZehr Security is valid and enforceable, subject to standard assumptions and qualifications.
- secured creditorsnote: No outstanding balance stated - only the registered charge amount. Hue is the vendor from whom the Debtors acquired the Real Property in 2022. The Receiver received no correspondence from Hue during the receivership and Hue did not indicate interest in the Sale Process; as the purchase price is less than the balance owing to MarshallZehr, no distributions will be available to creditors other than MarshallZehr. · page: 7 · debtor: 98 James South (2022) Inc. and 98 James South (2022) Limited Partnership · creditor: Hue Developments & Investments Canada Inc. · currency: CAD · security: Charge in the amount of $14,000,000 registered against the Real Property on September 9, 2022 in connection with a vendor take-back mortgage (registration amount, not a stated balance). Pursuant to a subordination and standstill agreement dated September 9, 2022, Hue agreed to subordinate and postpone its security in favour of the MarshallZehr Security.
- fee scheduleengagements: form: report_table · rows: · money: approximate: false · period: end: 2024-12-31 · kind: interim · quote: For the Period from August 14, 2024 to December 31, 2024 · start: 2024-08-14 · approval: state: unstated · averages: rate: 487.19 · quote: The average hourly rate for the Receiver, Chaitons and Fasken for the referenced billing period was $487.19, $546.67 and $806.61, respectively · scope: Receiver · currency: · invoices: · firm text: KSV Restructuring Inc. · firm quote: KSV Restructuring Inc. · context quote: KSV Restructuring Inc. ('KSV') was appointed receiver (the 'Receiver') of all assets, undertakings and properties · context unverified: true; form: report_table · rows: · money: tax: label: HST · quote: HST of $5,355.57 · amount: 5355.57 · fees: quote: fees of $41,055.00 · amount: 41055 · total: quote: totalling $46,644.37 (comprised of fees of $41,055.00, disbursements of $233.80 and HST of $5,355.57) · amount: 46644.37 · includes tax: true · includes disbursements: true · approximate: false · disbursements: quote: disbursements of $233.80 · amount: 233.8 · period: end: 2024-12-31 · kind: invoice · quote: Attached hereto and marked as Exhibit 'A' are copies of the accounts issued by Chaitons to the Receiver for the time period commencing August 15, 2024 and ending December 31, 2024 · start: 2024-08-15 · approval: state: unstated · averages: rate: 546.67 · quote: The average hourly rate for the Receiver, Chaitons and Fasken for the referenced billing period was $487.19, $546.67 and $806.61, respectively · scope: Chaitons · currency: · invoices: · firm text: Chaitons · firm quote: Chaitons · context quote: Attached hereto and marked as Exhibit 'A' are copies of the accounts issued by Chaitons to the Receiver; form: report_table · rows: · money: approximate: false · period: kind: invoice · quote: the period from November 6, 2024 through December 31, 2024 (the 'Statement of Account') · approval: state: unstated · averages: rate: 806.61 · quote: The average hourly rate for the Receiver, Chaitons and Fasken for the referenced billing period was $487.19, $546.67 and $806.61, respectively · scope: Fasken · currency: · invoices: · firm text: Fasken · firm quote: Fasken · hours total: quote: 20.5 hours were incurred by Fasken, for the period from November 6, 2024 through December 31, 2024 · value: 20.5 · context quote: Attached hereto as Exhibit 'A' is a true copy of the statement of account of Fasken in respect of services rendered to the Receiver
- recovery outcomeentries: basis: estimated · quote: MarshallZehr will suffer a shortfall on the net sale proceeds from the Transaction; and · pct of: unstated · outcome: shortfall · class key: secured · stated by: receiver · class label: MarshallZehr · creditor name: MarshallZehr · interim final: unstated · claims qualifier: unstated; basis: estimated · quote: As the purchase price is less than the balance owing to MarshallZehr, there will be no distributions available to other creditors. · pct of: unstated · outcome: nil · class key: unsecured · stated by: receiver · class label: other creditors · interim final: unstated · claims qualifier: unstated · stated on: 2025-01-07 · table missing: