Galaxy North: a receiver, despite a sale hoped for in three weeks

On October 9, 2026, at what the endorsement records as the fourth appearance on the application, Justice Cudjoe of the Ontario Superior Court of Justice in Brampton appointed MNP Ltd. receiver on the application of Business Development Bank of Canada, over the respondents' request that the court wait for a sale. They had an agreement of purchase and sale to close on October 27 that would cover the bank's payout, they argued, and a $400,000 deposit showed the purchaser meant to follow through. BDC answered that this was the third APS before the court. The judge agreed with the bank "that the receivership should be ordered despite the hope that a sale [may] occur in 3 weeks," per the Endorsement of Justice Cudjoe, Oct. 9, 2026, paras. 3, 14, 16, 21.

The order, made under s. 243(1) of the Bankruptcy and Insolvency Act and s. 101 of the Courts of Justice Act in court file CV-26-00004349-0000, appoints MNP, without security, receiver of all the assets, undertakings and properties of 2224346 Ontario Inc. and 2716780 Ontario Inc. acquired for or used in their businesses, and the proceeds, "including, without limitation, the Real Property": the real property owned by Galaxy North Limited at 6351 Goreway Drive, Mississauga, per the Order (appointing Receiver), Oct. 9, 2026, preamble and para. 2. The endorsement calls the three respondents together "Galaxy", and the account of the hearing below uses the name in that sense, per the Endorsement of Justice Cudjoe, Oct. 9, 2026, para. 1.

$8.5 million of credit, secured on the land and the rent

In February 2023, the endorsement records, BDC and Galaxy entered into a credit agreement under which the bank provided credit of $8.5 million, and Galaxy "provided security to the credit with the land and rent." BDC was the only secured creditor against Galaxy, the endorsement says, and the outstanding payout was $8.1 million. The bank became concerned about a lack of reporting and about property taxes that had accrued to more than $140,000; "These two," the endorsement says, "were a violation of the credit agreement." In January 2026 BDC issued an exit letter asking Galaxy to make "immediate arrangements to refinance and/or pay BDC in full no later than March 2, 2026." Galaxy asked for six to eight months to try to refinance, per the Endorsement of Justice Cudjoe, Oct. 9, 2026, paras. 4–6, 8–10.

In May 2026, the endorsement goes on, BDC discovered that the property tax bill was over $180,000; Galaxy paid it down, but on the day of the hearing could not confirm that $40,000 of tax was not still outstanding. BDC also discovered, according to the endorsement, that in June 2024 Galaxy "lost its license to operate as a career college for 'truck training for receiving forged foreign driver's license records … presenting tremendous risk to students and public safety'," per the Endorsement of Justice Cudjoe, Oct. 9, 2026, paras. 11–12. The endorsement does not identify the source of the words it quotes there. It records no answer from Galaxy on the licence.

Leeway, then a peremptory date

BDC "did initially give some leeway to Galaxy," according to the endorsement. The hearing was adjourned from July 2026, when, the endorsement says, BDC expressed confidence that alternative financing would be in place. By October 9 the hearing was "marked peremptory on Galaxy to proceed," and the peremptory order had been made on consent, per the Endorsement of Justice Cudjoe, Oct. 9, 2026, paras. 3, 13.

The order recites what the court read, including affidavits sworn May 25 and October 2, 2026, responding affidavits sworn July 9 and October 2, the applicant's factum of October 2 and the respondents' of October 6, per the Order (appointing Receiver), Oct. 9, 2026, preamble. None of those papers is in the record; what each side argued comes from the endorsement.