Hano Investment: no cheque, no redemption

The building at 30 Baywood Road in Etobicoke sits on a site of approximately 2.78 acres, some 65,000 square feet of offices, industrial units and shops, and its largest tenant is a banquet hall: Shlemoon Venues Inc., doing business as Toronto Grand, which occupies approximately 23,230 square feet, about 36% of the net leasable area, per the Second Report of the Receiver, July 14, 2026, paras. 13–14. A notice registered on title in 1992 records an agreement with the City of Etobicoke permitting a banquet facility to operate there, and it survives the sale, per the Approval and Vesting Order, Aug. 7, 2026, Sch. D.

Hano Investment Ltd., a real estate holding company with its registered office in Kleinburg and two directors, Warda Warda and Vedel Warda, bought the property in or around November 2016, and it is the company's principal asset, per the Second Report of the Receiver, July 14, 2026, paras. 2, 12–13. On August 7, 2026, ten and a half months into a receivership, Justice W.D. Black of the Superior Court of Justice (Commercial List) approved the receiver's sale of it to 1001609728 Ontario Inc. and dismissed Hano's motion to redeem the first mortgage instead. Hano had represented in the past that it was prepared to redeem, the judge wrote, "and has failed each time to come up with the required financing," per the Endorsement of Justice W.D. Black, Aug. 7, 2026, paras. 19, 22–23.

Two adjournments and a signed consent

The debt was a $16,200,000 first mortgage loan from National Bank of Canada (NBC) under a May 30, 2023 commitment letter, guaranteed by the two directors, per the Endorsement of Justice Dietrich, Sept. 24, 2025, paras. 9–11. In the spring of 2025, in the words of Hano's president, Warda Warda, the company "experienced financial circumstances that resulted in default under its mortgage obligations," per his Affidavit of Warda Warda, July 21, 2026, para. 3. The bank made demand on May 20, 2025, and the June 12 payment came back for non-sufficient funds. Two further charges had gone on title without the bank's authorization: $3.5 million in favour of 1832763 Ontario Ltd. in February 2024 and $1 million in favour of 9523-5685 Quebec Inc. on September 12, 2025, per the Endorsement of Justice Dietrich, Sept. 24, 2025, paras. 12–14.

The bank's receivership application first came before Justice Conway on July 9, 2025, when the parties agreed that Hano would have two months to refinance and repay the bank, failing which it would consent to a receiver. A second adjournment, to September 24, came on terms that the matter would proceed on consent if the bank was not repaid by September 23, per the Endorsement of Justice Dietrich, Sept. 24, 2025, paras. 2–3, and Hano signed an irrevocable consent to the receivership order as its condition, per the First Report of the Receiver, Dec. 11, 2025, para. 20. On September 24 Justice Dietrich refused Hano's request for one more week, appointed Ernst & Young Inc. (EY) as receiver and manager, and added a caution: "the appointment of a receiver does not put an end to the Borrower's right to redeem. However, as time passes, the right to redeem becomes more challenging," because costs keep rising and each step the receiver takes makes the right harder to enforce, per the Endorsement of Justice Dietrich, Sept. 24, 2025, paras. 4–5, 28.

A receiver without the books

EY's first report describes a receivership that began without the company's records. Around October 20, the receiver reported, seven tenants told it that Mr. Warda had instructed them not to pay rent to the receiver. The September 2025 rent roll he produced on November 20, the receiver found, did not match a June 2025 rent roll the company had provided in connection with its refinancing: the June version showed total gross rent more than double the September figure and full occupancy against 88%, and Mr. Warda had not explained the difference, per the First Report of the Receiver, Dec. 11, 2025, paras. 29, 34, 45, 47. On December 18, 2025, Justice Dietrich ordered him to deliver the tenancy records by January 2, 2026 and to pay the receiver $20,000 in costs, per the Compliance and Document Production Order, Dec. 18, 2025, paras. 2–4. As of July 14, 2026, the receiver reported, he had paid nothing toward the award. Kipling Realty Management took over the building in January 2026, and by July, 14 tenants were paying rent where the receivership had begun with 18; through June 30 the receiver had collected $725,772 in rent and held $150,529 after its costs, per the Second Report of the Receiver, July 14, 2026, paras. 22, 25, 27, 74 and App. J.

Forty-nine confidentiality agreements, three final offers

The court approved a sale process with Jones Lang LaSalle (JLL) as listing broker on the day of the compliance order. JLL listed the property on MLS on February 18, 2026 and emailed a network of more than 5,000 contacts; 49 parties signed confidentiality agreements, seven toured the building, and five letters of intent came in by the March 25 deadline. After a second round on the receiver's template agreement, three bidders made final offers by April 15. JLL had twice emailed Mr. Warda to offer him the chance to bid, and he did not respond, per the Second Report of the Receiver, July 14, 2026, paras. 4, 31–39, 53.

The purchaser, 1001609728 Ontario Inc., offered the highest price, and on May 14, 2026 the receiver signed an agreement of purchase and sale with it: cash, as is, where is, not conditional on financing, closing 90 days after May 15 with an option to extend up to 21 days. The price, the deposit and the bid summary went into confidential exhibits. NBC, the receiver reported, "is supportive of the APS despite the fact that it will face a shortfall in its recovery if the Sale Transaction closes," per the Second Report of the Receiver, July 14, 2026, paras. 40–44, 49.

$17 million, then $18 million

Hano's counsel returned to redemption after the bids were in. NBC declined to consider a without-prejudice settlement offer sent on May 7; on May 22 the receiver said it had signed a binding agreement and a redemption would need a motion, and the notice of motion came on June 18. On June 23 Hano served a "Binding Commitment Agreement" with Fiducia Ventures Inc. for $17.0 million in first and second mortgages, under which FVI would also take a 20% Class A equity interest in the property. Hano did not answer when the receiver asked to speak with FVI directly, per the Second Report of the Receiver, July 14, 2026, paras. 55–62. On June 25 Justice Dietrich vacated the receiver's July 6 approval date and set both motions down for July 23, per the Endorsement of Justice Steele, July 23, 2026 (released July 24), para. 3.

By July 21 the package had changed: a $14,000,000 first-mortgage commitment dated July 16 from Firm Capital Corporation and a $4,000,000 second-mortgage commitment dated July 20 from FVI, $18 million in all, per the Supplement to the Second Report of the Receiver, July 22, 2026, para. 4 and the Endorsement of Justice Steele, July 23, 2026 (released July 24), paras. 6, 10. The receiver's counsel asked on July 22 about a $150,000 standby fee, an appraisal, a net operating income test, syndication of the loan and a subordination from the existing second mortgagee, and the receiver told the court that without answers it "is unable to assess the Debtor's proposed redemption transaction," per the Supplement to the Second Report of the Receiver, July 22, 2026, paras. 5–7 and App. A. Hano's counsel replied the same day that $50,000 of the fee had been wired, the appraisal delivered and the June 23 commitment superseded, and that Hano's real estate lawyer had asked the second mortgagee's lawyer to confirm its commitment to taking third place, per the Affidavit of Nadia Pannozzo, July 22, 2026, Ex. B.