Rocch Properties: no 30-day wait for offers 'said to be imminent'

On October 30, 2026, the debtors asked the court to adjourn, for 30 days, the receiver's motion for approval of a marketing and sale process for six of their properties. They had an offer for 31 Hansen Road South in Brampton, they said, and imminently expected offers for Units 38 and 40 at 6770 Davand Drive in Mississauga; the advantage of those sales, as Justice Koehnen's endorsement records it, "is that they would occur without commission." A 25% shareholder of the three companies, appearing without counsel, rested the same request on discussions with potential parties who could finance a redemption of some or all of the mortgages on the properties. "I am not prepared to adjourn the motion," the judge wrote, per the Endorsement of Justice Koehnen, Oct. 30, 2026, p. 2, paras. 2–4.

Counsel for the receiver, The Fuller Landau Group Inc., pointed out that the Hansen offer was from a numbered company, had no deposit associated with it and had, in any event, expired. On the Davand Drive units the endorsement speaks in the court's own voice: the offers "are not offers but are said to be imminent offers," and there was no information about purchase price, deposits or strength of the purchaser's covenant. "Moreover, the Receiver is looking to sell six properties. The 'offers' the Debtors propose cover only three," the judge wrote, and a marketing and sales process "would still be required for the other three," per the Endorsement of Justice Koehnen, Oct. 30, 2026, paras. 5–7. The order signed that day approves the process for all six, with the sales agents the receiver selected, and authorizes the receiver to make distributions, up to what it is owed, to the lender that applied for the receivership, Owemanco Mortgage Holding Corporation, per the Order, Oct. 30, 2026, p. 1; paras. 3–4, 6.

Six properties, after Unit 33

The three companies have been in receivership since August 5, 2026, when Justice W.D. Black, with no party opposed, appointed the receiver over them and all of their property on Owemanco's application. Owemanco's security, the judge recorded, "includes first-ranking Mortgages against the Hansen property and the Davand Units," per the Endorsement of Justice Black, Aug. 5, 2026, paras. 1, 3, 5. The part of the application concerning a guarantor's Toronto house was contested separately, and was reported here on October 20. The receiver's First Report sets out who owns what: 1954122 Ontario Ltd. is the registered owner of 31 Hansen Road South; Rocch Properties Inc. of Units 35 and 40 at 6770 Davand Drive; 1000045722 Ontario Inc. of Units 33, 36, 37 and 38, per the First Report of the Receiver, Sept. 8, 2026, paras. 2–4.

The first sale to reach the court was Unit 33. The receiver understands that before its appointment 1000045722 Ontario Inc. had been in discussions about a sale of the unit, which resulted in an offer, with a deposit paid to and held in trust by the company's counsel; it further understands that the buyer, 2705974 Ontario Inc., owns the unit adjacent to Unit 33. The receiver obtained opinions of value from three commercial real estate brokerage firms and reports that the price falls within the range they indicate. It also weighed the costs and delay of a further marketing process, then negotiated amendments to the offer and entered into an agreement of purchase and sale dated August 31, 2026. The price and the deposit are redacted in the report and in the copy of the agreement attached to it, and Owemanco, which the report calls the senior secured creditor, supported the receiver's recommendation, per the First Report of the Receiver, Sept. 8, 2026, paras. 8, 11, 13–16, 17(f).

Justice Dunphy approved the sale on September 16, satisfied "that the Receiver has acted reasonably throughout and brought to bear the appropriate degree of business judgment both as to the procedures followed and the assessment of the end result," per the Endorsement of Justice Dunphy, Sept. 16, 2026, para. 2. The approval and vesting order sealed the summary of the opinions of value and the unredacted agreement until completion of the transaction or further order of the court, per the Approval and Vesting Order (Unit 33), Sept. 16, 2026, para. 7 and the First Report of the Receiver, Sept. 8, 2026, paras. 13, 16. No receiver's certificate for Unit 33 is in the record.

What the court would not wait for

In September the receiver said it intended to return to court for approval of a marketing and sale process for the debtors' remaining assets and properties, per the First Report of the Receiver, Sept. 8, 2026, para. 7. When it did, it moved for a variety of relief, and only the process was contested, per the Endorsement of Justice Koehnen, Oct. 30, 2026, para. 1.

The proposed process "contemplates taking two to four weeks to plan and prepare the process," Justice Koehnen noted. "If there truly are imminent offers or the Hansen offer is a real offer, there is no barrier to making those offers now and letting the Receiver decide whether they are worth pursuing in the absence of a more formal sales process. There is of course also nothing that prevents the offerors from putting in offers in the course of the marketing and sales process." The two-to-four-week planning process, the judge wrote, would also allow the shareholder to come up with financing to take out the mortgages "if that is in fact feasible," per the Endorsement of Justice Koehnen, Oct. 30, 2026, paras. 7–8.

Counsel for the second mortgagees, whom the endorsement's list of appearances names as Galileo Group Inc. and Leonardo Corp., supported the receiver's motion. The endorsement records that their counsel acknowledged the attraction of a sale without a commission but "also noted that every day of delay increased transaction fees in the Receivership." Counsel for 8586985 Canada Corporation, listed as the tenant, also appeared. No objection was raised to the process, the judge wrote, "other than to have it adjourned for 30 days," per the Endorsement of Justice Koehnen, Oct. 30, 2026, p. 2, paras. 9, 13.