LT Capital: a receiver with no power to sell the land

On November 5, Justice C.C.J. Feasby of the Court of King's Bench of Alberta appointed D. Manning & Associates Inc. receiver and manager of two parcels on 20 Avenue NW in Edmonton: the lot at 9650, where an office building known as the Advanced Technology Centre stands, and 3.41 acres of vacant land at 9660. The order, made under s. 243(1) of the Bankruptcy and Insolvency Act and s. 13(2) of Alberta's Judicature Act in file 2603-11382, hands the receiver possession, the rents, the locks and, within limits, the repairs and the leasing. On the land itself it draws a line: the receiver "shall not abandon, dispose of or release the Lands, which shall be subject to judicial sale in accordance with the Redemption Order or such further Order of the Court," per the Receivership Order, Nov. 5, 2026, paras. 2, 3(a)–(c), (p).

The sale stays with the process already running. On August 11, Applications Judge L.R. Birkett granted the first mortgagee, Lanyard Capital Corporation, a redemption order that, as Lanyard's president describes it, gave LT Capital Limited and its co-defendant until September 11 to repay, "failing which the Lands would be offered for sale pursuant to a judicial listing." They did not repay by that date, the president swears, and the receivership Lanyard then sought was, in the affidavit's words, "limited in scope in that it would not empower the Receiver to market or sell the mortgaged lands," per the Affidavit for Appointment of Receiver, Oct. 28, 2026, paras. 3, 5, 23–24. The signed order leaves the listing outside its stay and requires the receiver to "cooperate with the Realtor" so as "to allow the Realtor to carry out the terms of judicial listing of the Lands," per the Receivership Order, Nov. 5, 2026, para. 12.

A loan at 10%, then 18%

Lanyard is a Vancouver lender that "provides secured loans to commercial borrowers in Canada." Under a Financing Facility Letter dated August 28, 2025, as revised, it agreed to lend LT Capital $4,725,000, at 10% a year until October 1, 2026 and 18% after that, with a maturity date of November 1, 2026. LT Capital, an Alberta company, is "in the real estate management and development business" to the best of the president's knowledge, and the president understands its sole director and sole voting shareholder to be the individual sued with it, per the Affidavit for Appointment of Receiver, Oct. 28, 2026, paras. 7–11. The corporate search attached to the affidavit shows the company incorporated in November 2022, with its registered office in a suite at 9650 20 Avenue NW, and the title certificates show it as owner of both parcels under a transfer registered in February 2024, per the Affidavit for Appointment of Receiver, Oct. 28, 2026, Exs. "B" and "C".

The president describes the building at 9650 as one that "is supposed to carry on business providing commercial space for technology entrepreneurs or related small businesses." The City of Edmonton's tax search lists it as a suburban office built in 1988, per the Affidavit for Appointment of Receiver, Oct. 28, 2026, paras. 16–17 and Ex. "I".

The loan is secured by a first-ranking demand mortgage on both parcels dated October 7, 2025, a general security agreement over LT Capital's personal property, an assignment of rents, and a priority agreement under which LT Capital's debt and security obligations to Pham Geomatics Solutions Inc. were subordinated to Lanyard's. The title certificates show that second mortgage at an original principal amount of $2,900,000, per the Affidavit for Appointment of Receiver, Oct. 28, 2026, paras. 12, 18 and Ex. "C".

LT Capital failed to make the payments when due, the president swears, and the affidavit sets out what followed: a demand from Lanyard's counsel on May 8, 2026 for the whole loan by May 19, with a notice of intention to enforce security under the BIA; a statement of claim on May 22; and, after the defendants did not defend, a noting in default on June 25. As the affidavit summarizes it, the redemption order declared the mortgage valid and enforceable, and $4,877,681.86, plus solicitor-and-client costs, interest at the mortgage rate and other chargeable amounts, owing as of August 11, per the Affidavit for Appointment of Receiver, Oct. 28, 2026, paras. 19–23. As at October 28 the president put the debt at $5,040,792.37, with legal fees, other chargeable costs and interest still accruing; the payout statement attached carries the principal at $4,725,000.00 and adds $2,457.75 for each day after October 28, per the Affidavit for Appointment of Receiver, Oct. 28, 2026, para. 25 and Ex. "E".

Five attempts, by the realtor's count

Since the redemption period ran out, the president swears, Lanyard "has learned of certain facts and circumstances that bring into serious doubt the Defendants' ability to remain in care and custody of the mortgaged lands," per the Affidavit for Appointment of Receiver, Oct. 28, 2026, para. 4. After September 11 Lanyard asked Avison Young to prepare a listing proposal and to view the Advanced Technology Centre; when the affidavit was sworn, it had not yet engaged the firm and was awaiting the proposal. On October 13, the affidavit says, an Avison Young email told the president that the firm's agent had made five attempts by telephone and email over the preceding ten days to reach the director, "all of which were unsuccessful," per the Affidavit for Appointment of Receiver, Oct. 28, 2026, paras. 26–28 and Ex. "F".

Lanyard's counsel wrote to the defendants on October 15 that those communications "have been ignored, and not responded to, and you have denied the Realtor access to the property." The letter quoted the redemption order's requirement that "the defendant and any person in possession of the Lands shall cooperate with the Realtor, and shall allow access to the Lands to the Realtor" on 24 hours' written notice, and called itself a "formal and final demand," per the Affidavit for Appointment of Receiver, Oct. 28, 2026, para. 29 and Ex. "G". The next day, after that letter and other correspondence from Lanyard directly, an individual the president understands to be the director's assistant met the agent and let the agent into the building. The agent's understanding, as the affidavit relays it, was that the assistant gave access because the director had limited access to email or phone. The president swears that the attempts to get in "delayed the listing," per the Affidavit for Appointment of Receiver, Oct. 28, 2026, paras. 30–31.

The agent's email after that October 16 viewing said the building was in "very very rough shape" and had "been banged up pretty hard and in need of massive TLC." The photos attached to it, the affidavit says, show "broken and damaged windows, broken ceiling tiles, water damage, a partially broken door," per the Affidavit for Appointment of Receiver, Oct. 28, 2026, paras. 32–33 and Ex. "H". The president swears that the agent estimated from the viewing that the building is about 30% occupied by commercial tenants, and that "LT Capital is not currently making any payments on the Loan, despite presumably collecting rents on a periodic basis"; Lanyard "does not have access to the current rent roll." In the president's account the building "is in a state of disrepair and disarray, is not being maintained, and is at undue risk. The risk to the Lands will only increase as winter approaches and temperatures drop," per the Affidavit for Appointment of Receiver, Oct. 28, 2026, para. 43(d), (g). Lanyard's bench brief adds that the occupancy "raises the additional concern that LT Capital is not actively leasing the building," and argues that a receiver with leasing powers "would enhance and preserve the business and value of the Property pending its sale," per the Bench Brief of the Plaintiff/Applicant, Nov. 2, 2026, para. 21.