Aate Westmount: a receiver's partial exit after four sales

The properties were a two-unit townhouse on avenue Lacombe, another on avenue Marcil, a three-storey, 12-unit building on rue du Souvenir and a two-storey, 10-unit building on Walkley Avenue, all in Montreal and each run as a residential rental, per the Third Report of the Receiver, Sept. 21, 2026, s. 2.0, para. 1. When KSV Restructuring Inc. was appointed receiver over them in February 2025, Peakhill Capital Inc. put its balances at approximately $1.2 million on Lacombe, $1.3 million on Marcil, $1.9 million on Walkley and $3.5 million on Souvenir, per the First Report of the Receiver, June 9, 2025, s. 3.1, para. 2. All four have now been sold. On September 21, 2026 the receiver — renamed AlixPartners Restructuring, Inc. since — filed its Third Report and an application to end the receivership for those four properties alone, and to be released for its work on them.

Peakhill has not been paid out on any of them. It told the receiver that, as at September 21, the principal still owing was approximately $46,000 on Lacombe, $482,000 on Marcil, $176,000 on Walkley and $335,000 on Souvenir, before interest and costs, per the Third Report of the Receiver, Sept. 21, 2026, s. 3.1, paras. 3–4.

Three court files, one order on consent

The Superior Court of Québec, Commercial Division, issued the receivership order on February 3, 2025 under s. 243 of the BIA, on the application of Peakhill Capital in two court files and of Peakhill Capital and Peakhill CW Inc. in a third, and the order was made on consent, per the Application for the Termination of the Receivership, Sept. 21, 2026, paras. 4–5. No. 500-11-065153-252 covers the Marcil townhouse, owned by Les Bien-Fonds AATE Westmount Inc./AATE Westmount Holdings Inc.; No. 500-11-065154-250 covers Lacombe, Souvenir and Walkley, owned by an individual respondent; No. 500-11-065155-257 covers the fifth property, a condominium unit at 4760C Le Boulevard in Westmount, owned by the same individual, per the application's caption and the Second Report of the Receiver, July 25, 2025, s. 2.0, para. 3.

"The principal purpose of the receivership proceedings (the 'Receivership Proceedings') was to conduct sale processes for each of the Real Properties," per the Third Report of the Receiver, Sept. 21, 2026, s. 1.0, para. 2. Behind Peakhill on title sat a list of later hypothecs: Chok Financial Group Inc. ($75,000) and an individual lender ($500,000) on Marcil; Finance SureCap Inc. ($150,000) and the same individual lender ($500,000) on Lacombe; individual lenders for $501,000 on Souvenir and $568,000 on Walkley; and legal hypothecs registered by the federal and Quebec revenue authorities on March 27, 2025 for $69,701 and $284,878, which the receiver describes as subordinate to Peakhill. The receiver's counsel gave an opinion that Peakhill's security is valid and enforceable, per the Third Report of the Receiver, Sept. 21, 2026, s. 3.1, paras. 1, 6–7. Since the sale proceeds on each property fell short of Peakhill's claim, "there are no distributions available to subsequent ranking creditors," per the Third Report of the Receiver, Sept. 21, 2026, s. 3.1, para. 2.

On June 1, 2026 KSV's parent was acquired by an affiliate of AlixPartners, KSV took the AlixPartners name, and an order of June 4, 2026 substituted it in all its court appointments. "The professionals involved in this mandate from the outset remain unchanged," per the Third Report of the Receiver, Sept. 21, 2026, s. 1.0, para. 1, n. 1.

When CMHC said no

Justice Karen M. Rogers approved the Lacombe, Souvenir and Walkley sales on June 23, 2025 and the Marcil sale on August 5, 2025, per the Approval and Vesting Order (Walkley), June 23, 2025 and the Approval and Vesting Order (Marcil), Aug. 5, 2025. The Lacombe townhouse sold first: EXP Agence Immobilière listed it on March 20, 2025, held five open houses that drew 61 visits, and took two further offers on May 5 after a first round produced no improvement, per the First Report of the Receiver, June 9, 2025, s. 4.3.1, paras. 1–6. Once it closed, the receiver disclosed the price, $1.23 million, and an initial distribution of $1,042,849 to Peakhill, per the Second Report of the Receiver, July 25, 2025, s. 4.1, para. 1. Marcil was listed at $1.25 million and drew no offers by its May 12, 2025 offer date; its eventual price, like the Souvenir and Walkley prices, was filed under seal, per the same report at s. 4.2, paras. 2 and 7.

The two apartment buildings did not close until 2026, for a reason that sat in the loans. Avison Young marketed them for five weeks to a database of almost 3,000 prospects, took 56 NDAs, and received nine offers for Souvenir and seven for Walkley by May 15, 2025. Every offer was conditional on the buyer assuming Peakhill's existing mortgages, which Canada Mortgage and Housing Corporation insured, per the First Report of the Receiver, June 9, 2025, s. 4.3.2, paras. 1, 4, 6.

On September 8, 2025, CMHC told the receiver it would not approve the loan assumption for either building. The buyers stayed, but said they would have to re-underwrite on new loans with "less favorable loan terms," and both cut their prices. After further negotiation, and CMHC's approval of the revised figures on December 10, 2025, the receiver signed amending agreements: "the revised price in respect of the Walkley Property represents a reduction of approximately 8.3%, and the revised price in respect of the Souvenir Property represents a reduction of approximately 4.3%," the exact amounts remaining under seal, per the Addendum to the First Report of the Receiver, Dec. 17, 2025, s. 2.0, paras. 6–11. The receiver did not go back to court for them. It treated the cuts as a "non-material alteration" within para. 11 of the approval and vesting orders, reasoning that Peakhill was the fulcrum creditor at either price, that Peakhill and CMHC both supported the change, and that remarketing "would carry significant risk of reduced pricing based on market feedback," per the Addendum to the First Report of the Receiver, Dec. 17, 2025, s. 2.0, paras. 13–14, and s. 3.0, paras. 1–2.