Onyxa Canada: four offers for 157 Toryork Drive, and a redacted price

Onyxa Canada Inc. sold porcelain slabs and tiles for commercial and residential construction from a leased showroom at 125 Tycos Drive in North York and from a building at 157 Toryork Drive, Toronto, that belongs to a second company, Onyxa Holding Group Inc. Holding is not an operating company, according to KPMG Inc., now receiver of both. KPMG's notice to creditors describes the building as used by Onyxa Canada "primarily for the purpose of storing the inventory of the Debtors, as well as an office space and a source [of] rental income," per the First Report of the Receiver, May 21, 2026, paras. 9, 14–15 and the Notice and Statement of the Receiver, Mar. 26, 2026, para. 4(b).

Holding first hired Avison Young to market the building in September 2025 and later engaged a second broker, Vanguard Realty Brokerage Corp. On September 14, 2026, KPMG, as Holding's receiver, signed an agreement to sell it to Jands Investments Inc., "for a corporation to be incorporated." KPMG's Second Report, dated September 28, and a factum dated October 19 ask the Ontario Superior Court of Justice (Commercial List) to approve the sale and vest the building in the buyer free and clear of all but permitted encumbrances; to authorize and direct an interim distribution to Royal Bank of Canada, the lender that applied for the receivership; and to seal the comparison of the offers and the unredacted agreement until the sale is completed or the court orders otherwise. The price and the deposit are redacted from the public copy "given commercial sensitivity," per the First Report, paras. 58, 64, the Second Report of the Receiver, Sept. 28, 2026, paras. 1, 6, 30 and p. 20 and the Factum of the Receiver, Oct. 19, 2026, paras. 1–2.

Two forbearances and a holding proposal

RBC came to the companies as successor to HSBC Bank Canada, with which it amalgamated effective March 29, 2024, according to an affidavit sworn on February 5, 2026 by a senior manager in RBC's special loans and advisory services group. As of January 5, 2026, Onyxa Canada owed RBC $4,896,566.72, of which $4,576,011.11 was on a $4,580,000 operating line, and Holding owed $4,957,213.44 on a capital loan. The companies guaranteed each other's debt without limit, and Holding's first mortgage on the building was amended in 2023 to secure $10,000,000. In the summer of 2025 the companies' principal and guarantor, who is also a respondent, added personal guarantees limited to $1,000,000 in all and an $850,000 second collateral mortgage on a property the guarantor owns, per the RBC affidavit, Feb. 5, 2026, paras. 2, 6–7, 10–12, 14, 16, 20.

RBC demanded payment on May 15, 2025. The affidavit's list of defaults opens with tax: Onyxa Canada owed Canada Revenue Agency $1,016,122.84 in HST and $2,302.35 in employee source deductions as at May 20, 2025. Two forbearance agreements followed, and the second, dated August 2, ran to October 31, 2025, "to allow the Debtors sufficient time to sell or refinance the Real Properties and repay the Indebtedness," and contained terms for a proposal by Onyxa Canada, per the RBC affidavit, paras. 8, 15, 23–26.

Onyxa Canada filed a notice of intention on August 14, 2025, with The Fuller Landau Group Inc. as proposal trustee, and on October 27 a proposal that Fuller Landau called "a holding proposal intended to allow sufficient time for the sale or refinancing of the Toryork Property." RBC was unaffected by it. At the first meeting, on November 14, creditors voted to adjourn. On January 5, 2026, RBC's counsel gave notice that forbearance and all banking services and credit would end effective January 26, and on January 16 Fuller Landau reported a material adverse change, in a report Justice Conway later summarized as "outlining issues including the alleged failure by [Onyxa] Canada to provide requested financial reporting and evidence of tax remittances to CRA," per the RBC affidavit, paras. 27, 29–31, Fuller Landau's Report of Trustee on Proposal, Oct. 30, 2025, Application Record Ex. "Z", pp. 199, 204 and its Report of the Trustee on Material Adverse Change, Jan. 16, 2026, Ex. "AA", pp. 244, 246, and the Endorsement of Justice Conway, Mar. 13, 2026, para. 3.

RBC's affidavit proposed Fuller Landau as receiver; the application Justice Conway heard sought KPMG, which had consented to act. The principal appeared for all three respondents without counsel and asked for more time to pursue a possible share transaction, with a possible refinancing by BDC. The companies' then counsel had sent RBC an agreement of purchase and sale for the building on February 23, which RBC's counsel advised was "heavily conditional." The judge declined the adjournment: the principal "was unable to present anything specific or concrete to the court," and "RBC has already provided two forbearances since the loan went into default in May." A receiver, the endorsement says, "will provide RBC with the visibility and transparency that it requires into the operations of [Onyxa] Canada," per the RBC affidavit, para. 49 and the Endorsement of Justice Conway, paras. 2, 7–10.

KPMG's appointment over the two companies and their property, the building included, is dated March 16, 2026. The part of the application concerning the guarantor's property was adjourned so the principal could pursue a sale of it. Onyxa Canada was deemed to have made an assignment in bankruptcy on or around April 1, 2026, with Fuller Landau as trustee, subject to affirmation by creditors, per the Appointment Order, Mar. 16, 2026, para. 2, the Endorsement of Justice Conway, para. 12 and the First Report, para. 18.

The stock in the books and the stock on site

In its first report, dated May 21, KPMG gave the unaudited book values as of March 16: inventory at $4,414,869, fixed assets at $1,699,958 and receivables at $750,618; the receivables subledger showed all of the receivables as "significantly aged." The building's book value was unknown, because KPMG had not obtained access to Holding's financial statements, and the books showed liabilities of approximately $13.9 million. Among KPMG's reasons for liquidating rather than marketing the business as a going concern: it was not aware of any customer contracts or work orders evidencing future work, all employees had been terminated before the receivership, and it did not have access to "timely or reliable sales and inventory reporting," per the First Report, paras. 27–28, 31, 38.

The inventory subledger put the book value of the stock, consisting primarily of porcelain slab, tiles and related stone products, at approximately $4.4 million as of March 24. Each auctioneer contacted said realizable values would be "significantly lower." Their general feedback, the report says, was that "the inventory listings and quantities identified therein based on the company's books and records were materially higher than what was observed at the Toryork Property during site inspections," per the First Report, paras. 29, 33.

Three auctioneers submitted proposals, and before choosing one KPMG tried the trade. It sent 26 strategic parties, companies in the same industry with locations near the building, an overview of the business, an inventory listing and a non-disclosure agreement, among other things; none signed the agreement or went into formal due diligence. Some wanted limited quantities of the higher-value stock, and KPMG did not pursue those, having determined that doing so would have left the estate retaining "a disproportionate amount of lower-value and slower-moving inventory." It chose McDougall Auctioneers Ltd., whose proposal gave the highest net recovery, and McDougall ran an online auction on August 31, 2026. On September 28 the auctioneer was still coordinating the removal of the assets sold and of unsold inventory and had not delivered its final accounting; KPMG had received a guaranteed minimum payment and expected more once that accounting was in, per the Second Report, paras. 13, 15–21, 49.