Craig Developments: a sale to the lender's venture with the former principal

The townhouses on Sabrina Park Drive in Huntsville got as far as exterior walls, a roof and windows. The doors were never installed, and interior framing was started in some units and left unfinished, according to the affidavit First Source Financial Management Inc. swore to put their owner into receivership, which takes those details from Teresa Oliver, the sole officer and director of Craig Developments Inc. The rest of the roughly 5.5 acres was meant for 147 apartment units in five three-storey buildings, and construction on them never began, per the Affidavit of David Mandel, Oct. 30, 2024, paras. 5, 9–13.

On July 23, 2026, the receiver, TDB Restructuring Limited, signed an agreement to sell the land to Sabrina Park Inc. The receiver describes the buyer as a newly formed entity related to both the lender and the debtor, and understands it to be a joint venture between First Source and Ms. Oliver, a former principal of the debtor. The price and the deposit are redacted from the public copy, and the receiver has asked that the unredacted agreement be sealed until closing, per the First Report of the Receiver, July 24, 2026, paras. 46–49, 67.

The approval motion, first noticed for July 31, came back on a supplementary record returnable August 18. In between, on August 13, Judith Pare, one of the guarantors of the First Source loans, swore an affidavit that, as the receiver describes it, says the receiver failed to respond "in a timely or substantive manner" to the second mortgagee's attempts to bid, questions how long the land was exposed to the market, and raises the buyer's relationship with First Source and Ms. Oliver. The receiver answered on August 17 with a supplement to its First Report and five appendices of its own correspondence, per the Supplement to the First Report of the Receiver, Aug. 17, 2026, paras. 1, 4, 7, 11. The Pare affidavit is not among the documents read for this piece; what it says appears here only as the receiver reports it.

A loan at 19.75%

First Source advanced two loans under commitment letters dated August 22, 2022: $3,567,200 to pay for servicing the townhouse complex and $3,074,500 to build it. It took a first charge registered on November 29, 2022 for $7,970,040, a general security agreement and a general assignment of rents. Ms. Oliver and Investorcentric Inc. guaranteed the loans in October 2022, and Ms. Pare and Joseph Coria assumed and guaranteed them in June 2023. The loans were due on December 1, 2023, were extended to March 8, 2024 and again to September 8, 2024, and were not repaid, per the Affidavit of David Mandel, Oct. 30, 2024, paras. 14–24. At demand on September 27, 2024, First Source put the balances at $3,672,853.44 and $2,661,028.21. Its affidavit says the debtor could not continue the project for lack of funds, that the lender would not extend or advance further, and that the construction lien Archibald Builders Group Inc. had registered was itself a default under the commitment letters, per the Affidavit of David Mandel, Oct. 30, 2024, paras. 25, 32, 36–37.

Justice Penny appointed TDB on December 3, 2024, with no one opposing. The endorsement records that interest payments stopped in September 2024 and that the debtor had been unable to refinance. It also lists what stood behind First Source: a $2 million second charge in favour of a numbered company, charges in favour of CMHC of $159,200 and $161,800, and Archibald's lien for $403,651. "The townhouses need to be protected in order to preserve as much value as possible," Justice Penny wrote, per the Endorsement of Justice Penny, Dec. 3, 2024, paras. 3–4, 8–10.

First Source's payout statements put its claim at $9,032,535.95 as of May 31, 2026, with a per diem of $4,524.94 after that, per the First Report of the Receiver, July 24, 2026, para. 18. The two discharge statements behind the total charge interest at 19.75%, the higher of 18% or CIBC prime plus 13.30%. Alongside the monthly interest they carry three months' interest of $169,828.74 and $123,327.39, holding-over fees of $185,164.12 and $134,463.74, and $10,000 in late charges on each account, per the First Report of the Receiver, July 24, 2026, App. "C".

Keeping the site

The receiver found no insurance policy in force when it arrived and arranged its own, since renewed with another insurer. It hired a general contractor to secure the property and has had an agent monitor it for trespass and vandalism. In consultation with First Source, it also engaged consultants to protect the construction already done and to keep the debtor's permits and applications alive: outstanding matters under the site plan agreement with the Town of Huntsville, permit extensions, and further engineering and consultants' reports, per the First Report of the Receiver, July 24, 2026, paras. 21–24, 29–30.

The administration has run on $485,000 borrowed from First Source on receiver's certificates, under a borrowing charge of up to $500,000 in the appointment order. Its interim statement to July 21, 2026 shows $207,715 spent on site work and consulting, $50,270 on insurance, $23,600 on security and $101,225 on receiver's fees, leaving $31,024 in hand, per the First Report of the Receiver, July 24, 2026, paras. 55–56, 66, App. "H". Property taxes were $39,208.68 in arrears as of June 24, 2026, accruing interest at 1.25% a month, and are to be paid from the sale proceeds.

One letter of intent

TDB asked six commercial brokerages for listing proposals, received four and chose CBRE in consultation with First Source. The summary of those proposals, which contains the brokers' opinions of value, is the other document the receiver wants sealed. CBRE listed the land on MLS on February 4, 2025 without an asking price, launched its campaign on February 27 and set an offer deadline of April 29. The campaign included an eight-by-eight-foot sign on the site, a brochure, email to about 1,300 contacts, a half-page advertisement in the planning journal NRU, LinkedIn advertising that reached about 21,000 people, a phone campaign and a data room, per the First Report of the Receiver, July 24, 2026, paras. 33–39, 51, 67.

Three parties signed confidentiality agreements and were given access to the data room, and by the deadline one non-binding letter of intent had arrived, which the receiver, after consulting First Source, found not commercially reasonable. It required a significant vendor take-back mortgage that the receiver was not in a position to provide, and neither the receiver nor CBRE believed its price reflected fair market value. The bidder would not improve its terms on the receiver's form of agreement. The land stayed on MLS until the listing agreement expired on February 4, 2026, and parties were still making inquiries that month, but "no viable transaction was identified for the Receiver to pursue," per the First Report of the Receiver, July 24, 2026, paras. 31(i), 40–45.

The receiver then negotiated with Sabrina Park Inc. Its agreement is an as-is, where-is sale of the lands and the debtor's other property, closing eleven days after an approval and vesting order. The order must be granted and must become final, and neither party can waive that condition. If the court declines to grant the order, the agreement terminates and the deposit is returned, per the First Report of the Receiver, July 24, 2026, App. "E", ss. 9, 14, 17, 19. The receiver's reasons are that the market was widely canvassed, that more exposure is unlikely to produce other offers, and that no other acceptable or unconditional offer came in. "The transaction contemplated by the APS provides the best opportunity for the Lender to recover its indebtedness," per the First Report of the Receiver, July 24, 2026, paras. 52–54.