Ontario · Receivership (court-appointed)
The purpose of this First Report is to: (a) provide a summary of the background of the Company; (b) report on the activities of the Receiver since its appointment; (c) update the Court on the process undertaken by the Receiver to market and sell the Property (the “Sale Process”); (d) update the Court on the position of Canada ICI Capital Corporation (“ICI”) regarding the liens registered against the Property, and the position of the lienholders; (e) provide information in support of the Receiver’s request for Court approval of the activities of the Receiver, including with respect to the Sale Process, as described in this First Report; and (f) provide information in support of the Receiver’s request for a sealing order over the Confidential Appendix attached hereto, pending the closing of a transaction, or further order of the Court, as it contains other information that could adversely affect the Sale Process and any further sale process for the Property
Court officer report · 8 February 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 filing5 verified
- secured creditorsnote: Amount per mortgage payout statement as of January 3, 2023 (excludes legal costs after October 31, 2022 and Receiver's borrowings of $20,000, plus interest). Personal/corporate guarantees given by Michael Smith and Capital Build Construction Management Corp. Security opinion obtained from Reconstruct LLP confirming validity and enforceability as against the Property. · page: 5 · as of: 2023-01-03 · amount: 8036291.39 · debtor: CB 11 South Woodbridge Corp. · creditor: Canada ICI Capital Corporation · currency: CAD · security: First charge/mortgage over the Property and first-ranking General Security Agreement; original commitment $7.5 million
- secured creditorsnote: Mortgage subordinated and postponed in favour of the ICI Mortgage pursuant to Subordination and Standstill Agreement dated April 15, 2021; Receiver has not yet performed independent security review; ICI alleges Hui breached Standstill Agreement. · page: 5 · debtor: CB 11 South Woodbridge Corp. · creditor: Dr. Fred Hui · currency: CAD · security: Second charge/mortgage over the Property; registered principal amount $1.5 million
- secured creditorsnote: Related party: sole officer/director/shareholder Michael Smith is also director/president/50% shareholder of CB 11. Capital Build assigned into bankruptcy October 4, 2022 (Goldhar & Associates Ltd., trustee). ICI's position is this lien is invalid as violating prohibition against an owner advancing a lien against its own property (Big Creek/Federated line of authority); counsel to Bankruptcy Trustee confirmed not seeking priority over ICI Mortgage. Disputed priority claim. · page: 15 · as of: 2022-05-03 · amount: 722070 · debtor: CB 11 South Woodbridge Corp. · creditor: Capital Build Construction Management Corp. · currency: CAD · security: Construction lien registered on title to the Property
- secured creditorsnote: Disputed priority claim over ICI Mortgage; HK confirmed via counsel it is not seeking priority over the ICI Mortgage, though its Statement of Claim sought full priority; ICI's analysis states any priority claim (via s.78(5)) would be limited to approx. $9,240.72. · page: 16 · as of: 2022-01-20 · amount: 92407.23 · debtor: CB 11 South Woodbridge Corp. · creditor: HK United Construction Ltd. · currency: CAD · security: Construction lien registered on title to the Property
- secured creditorsnote: Does not name ICI or Hui as defendants in its Statement of Claim and does not seek priority over either mortgage, but subsequently asserted (via counsel) it intends to seek priority over the ICI Mortgage in the amount of $26,622.80 pursuant to s.78(5) of the Construction Act; disputed/unresolved claim; Receiver recommends consensual resolution given small amount in dispute. · page: 16 · as of: 2022-08-03 · amount: 108505 · debtor: CB 11 South Woodbridge Corp. · creditor: KNYMH Incorporated · currency: CAD · security: Construction lien registered on title to the Property