2868 Bovaird Drive: a Brampton truck yard, an as-is sale and a redacted price

The Fuller Landau Group Inc., receiver of 1000599184 Ontario Inc., will ask the Ontario Superior Court of Justice in Brampton on November 13, 2026 to approve the sale of the company's land: two adjacent lots at 2868 and 2870 Bovaird Drive West, approximately 4.45 acres in all, whose buildings, originally constructed in 1970, include a transport truck repair shop, a dispatch office and a house converted to office use. The buyer is MKSM Holdings Inc., under an agreement of purchase and sale dated August 7, 2026 and fully executed on September 18, which the receiver says was entered into on an unconditional basis and which is scheduled to close between January 19 and January 29, 2027. The price and the deposit are redacted from the public copy, and the receiver asks that the unredacted agreement, a summary of the offers, a summary of the listing proposals and a September 2025 appraisal be sealed until the sale closes or the court orders otherwise, per the First Report of the Receiver, Oct. 27, 2026, paras. 2, 9, 31–33, 35–36, 40.

From the proceeds, net of priority payables including tax arrears, commissions, the property's expenses and approved professional fees, the receiver proposes to repay first its own borrowings of $245,000, funded by Business Development Bank of Canada (BDC), and then BDC, the first mortgagee, "in partial satisfaction of the BDC Claim, up to the amount of $9,571,905.61," the secured claim the receiver has accepted as at October 23, 2026. Given that claim and the anticipated net proceeds, it does not expect any surplus for the company's subordinate creditors. The motion, to be heard in person at 10:00 a.m. at the A. Grenville and William Davis Courthouse, also asks for a higher borrowing limit if the sale does not close and for the receiver's discharge once the sale has closed and the proceeds are paid out, per the First Report, paras. 43–45, 55 and the Notice of Motion, Oct. 27, 2026, pp. 1–2 and paras. 1–2, 22, 24.

A yard for a trucking group

BDC's account is in an affidavit sworn on May 26, 2025, in support of the receivership application, by the officer in its Business Restructuring Unit with carriage of the loan. The company was incorporated on July 18, 2023 and, as set out in the parcel registers the affidavit cites, bought the two properties on or about August 22, 2023 for a total of $8,500,000. BDC's loan was made to finance the acquisition: under a letter of offer dated August 9, 2023, BDC lent $7,500,000 over 25 years at 8.35% a year, with blended monthly payments originally set at $59,635.80 and the first due on February 21, 2024. Among its security were a first mortgage registered against both properties on August 22, 2023, a general security agreement and a general assignment of rents, per the BDC affidavit, May 26, 2025 (First Report, App. B), paras. 1, 5, 9, 12, 23–24, 28.

Three companies guaranteed the loan without limit and secured their guarantees with general security agreements: 1567012 Ontario Ltd., Axis Transportation Training Centre Ltd. and Arthur Transport Co, Inc. Four individuals, four of the borrower's five directors, guaranteed it up to $500,000 each, plus legal expenses and interest from demand. In BDC's description the borrower and the corporate guarantors belong to a group, which the affidavit calls the Transportation Consortium, that operates a training school for transport truck drivers and a transportation logistics company with customers throughout the GTA and in the United States. Arthur Transport, it says, operated its dispatch office from the Bovaird properties, and the group used the site "as the location for storing and maintaining its fleet of long-haul trucks and trailers," and ran its trucking school there, per the BDC affidavit, paras. 6, 9, 14, 16, 19, 22, 31–33.

What BDC says went wrong

BDC sent a notice of breach on June 5, 2024. Among the breaches it noted were unpaid property taxes, the company's failure to notify BDC that third-party tenants were occupying the properties, and its failure to confirm that required repairs had been carried out to BDC's satisfaction. In an amendment letter dated July 9, 2024, which raised the rate to 9.35%, the company and the guarantors acknowledged interest arrears of $157,166.17 and property tax arrears of $15,446.49, and agreed to cure the interest default by, among other things, paying $84,750 a month from July to December 2024. The company, BDC says, "made sporadic payments under the BDC Loan from July 2024 to March 2025, but never once made the full agreed-upon monthly payments of $84,750.00." The affidavit lists six payments, between July 29, 2024 and March 17, 2025, of $30,000 to $60,000 each, per the BDC affidavit, paras. 25–26, 35–36, 38.

The affidavit also sets out two later charges on the land. On or about November 3, 2023, it says, "without BDC's prior written approval or knowledge," the company granted a second mortgage of $485,000 to two individuals, and on or about August 16, 2024, again without BDC's prior written approval or knowledge, a third mortgage of $175,000 to one of them. BDC defines them as the "Unauthorized Second Mortgage" and the "Unauthorized Third Mortgage" and says each is an event of default under the loan, the mortgage and the security agreement, per the BDC affidavit, paras. 39–40. That is BDC's position, and the record holds no response to it from the company or from the two chargeholders, whose counsel is on the receiver's service list.

By BDC's breach letter of January 20, 2025, interest arrears stood at $326,942.48. On February 21, 2025 its counsel demanded $7,953,721.01 from the company and the guarantors, exclusive of legal costs and other fees and charges, and gave notice of BDC's intention to enforce its security under s. 244(1) of the Bankruptcy and Insolvency Act. On May 23, 2025 the debt was $8,082,055.80, excluding legal and other professional fees, with interest accruing at $2,097.43 a day, and neither the company nor the guarantors, BDC says, had honoured its demands, per the BDC affidavit, paras. 41–43, 45. Justice McGee appointed Fuller Landau as receiver and manager of the company's assets, undertakings and properties on August 5, 2025, under s. 243(1) of the BIA and s. 101 of the Courts of Justice Act, after a hearing by Zoom at which the order records submissions from BDC's counsel and from the company, no one else appearing, per the Appointment Order, Aug. 5, 2025, recitals and para. 2.

What the receiver found

Fuller Landau went to the property on August 8, 2025 to inspect it and change the locks. "The site was in a state of disarray and appeared to have been used for the disposal of unwanted materials," its First Report says, and vehicles were parked there that the company did not own "and whose presence had not been authorized." The report says the company did not respond to the receiver's initial requests for site access, and that the receiver was given limited books and records and financial information by the company's principal, per the First Report, paras. 3, 12–13, 14(a). Its notice to creditors of August 18, 2025 gave the company's principal line of business as "Owner of Real Property" and said no books and records nor bank accounts maintained by the company had been provided to the receiver, per the Notice and Statement of the Receiver, Aug. 18, 2025, paras. 3, 5.