Sweet Home Shores: a receiver for 30 condominium units on Lakeshore Road

On October 22, 2026, at a hearing held by Zoom, Justice J. Kalajdzic of the Ontario Superior Court of Justice appointed BDO Canada Limited receiver and manager, without security, of all the assets, undertakings and properties of Sweet Home Shores Inc., including the real property at 3956 and 3962 Lakeshore Road in Plympton-Wyoming, where the company owns all 30 units of a tenanted residential condominium complex. The appointment was made under s. 243(1) of the Bankruptcy and Insolvency Act and s. 101 of the Courts of Justice Act, on the motion of the company's first mortgagee, Peakhill Capital Inc., in Court File No. CV-26-00000061-0000, a proceeding commenced at Sarnia, per the Order, Oct. 22, 2026, p. 1 and para. 2, the Peakhill affidavit, Sept. 24, 2026, para. 9 and the Peakhill factum, Oct. 16, 2026, para. 2 and backsheet.

Peakhill's loan of $11,772,306 was made, among other things, to buy the complex. Its affiant swore that the company has breached the loan "by, among other things, failing to make monthly interest payments since October 2025," and that the debt stood at $12,303,540.70 on September 15, 2026, plus per diem interest. Before asking for a receiver, Peakhill sent a demand, a notice of sale and notices directing the tenants' rent to its own agent; meanwhile the Town of Plympton-Wyoming and its fire department issued orders concerning the property, per the Peakhill affidavit, Sept. 24, 2026, paras. 10, 19–23, 28–29.

Thirty units and a first mortgage

The 30 units sit at two addresses, fifteen at each: parcels at 3956 Lakeshore Road that each carry an undivided interest in a common elements condominium, and fifteen units of a standard condominium plan at 3962, per the Order, Oct. 22, 2026, Sched. "A". The Plympton-Wyoming Fire Department describes 3962 as a three-storey residential building with a walk-out basement and fifteen dwelling units, unsprinklered and equipped with a fire alarm system, per its Inspection Order 2026-02, Ex. "22" to Peakhill affidavit, p. 152.

Sweet Home Shores was incorporated in Ontario on August 21, 2024, with a registered office in Burlington, per its corporate profile report, Ex. "2" to Peakhill affidavit. Three months later, on November 21, 2024, Peakhill issued a commitment letter for what it calls a CMHC-insured mortgage loan: $11,337,000 net, plus a $430,806 CMHC insurance premium and a $4,500 application fee, for a gross amount of $11,772,306. With an equity contribution of $2,163,000, the letter says, the proceeds would buy the property for a total consideration of $13,500,000 and pay the premium and the fee. The amortization is 480 months and the maturity date June 1, 2030, subject to an extension option the letter gives the lender, per the Commitment letter, Nov. 21, 2024, Ex. "6" to Peakhill affidavit.

Peakhill's security includes a first mortgage registered on January 9, 2025 in favour of Computershare Trust Company of Canada as custodian or nominee for Peakhill, a registered notice of assignment of rents, a general security agreement and an assignment of leases. Two corporations and the company's two directors, each of whom is the sole director of one of those corporations, guaranteed the loan, and are liable "as principal debtors and not as sureties, for 40% of the indebtedness owing under the Loan," per the Peakhill affidavit, Sept. 24, 2026, paras. 5–8, 11–12. Peakhill says it is the only secured creditor: the only one registered on title and the only one on a Personal Property Security Act search of August 30, 2026, with no active writs of execution, orders or certificates of lien against the company on execution searches as at August 31, per the Peakhill affidavit, Sept. 24, 2026, paras. 16–18.

A demand, a notice of sale, and the rent

Peakhill's evidence is an affidavit sworn on September 24, 2026 by its associate director of default management. No account from the company of why the payments stopped is in the record. Peakhill's lawyers, Robins Appleby LLP, wrote to the company and the guarantors on November 18, 2025, citing the unpaid October and November payments, putting the debt at $11,821,713.72 as of November 14, demanding payment in full and reserving the right to enforce if payment was not received by November 28; a notice of intention to enforce security under s. 244 of the BIA went with the letter, per the Peakhill affidavit, Sept. 24, 2026, paras. 1, 20 and Ex. "14".

On or about January 5, 2026, the mortgage and the assignment of rents passed from Computershare to Peakhill "in connection with the enforcement of the Loan and the Security," the factum says, per the Peakhill factum, Oct. 16, 2026, para. 17. On January 7, Peakhill addressed a notice of sale under the mortgage to the company, the guarantors and all occupants and tenants. It put the amount required for discharge on January 6 at $11,934,252.81, including $190,129.76 of payments missed from October 2025 to January 2026, and said that unless the sums were paid on or before February 13, 2026, "the Mortgagee shall sell the property covered by the said mortgage under the provisions contained in it," per the Notice of Sale, Jan. 7, 2026, Ex. "16" to Peakhill affidavit, pp. 25–27.

On February 25 Peakhill moved on the rent. Notices of attornment told the tenants that no rent was to be paid to the company, and that rent past due and all future rent was to be paid to Richmond Advisory Services Inc., which Peakhill had retained, its affiant says, "solely for collecting rent," per the Notice of Attornment, Feb. 25, 2026, Ex. "18" to Peakhill affidavit, pp. 64–65 and the Peakhill affidavit, Sept. 24, 2026, para. 22. Peakhill commenced this proceeding, an action against the company and the four guarantors, on March 24, per the Peakhill factum, Oct. 16, 2026, p. 1 and para. 3. Its payout statement of September 15 put the amount required for discharge that day at $12,303,540.70, a figure that includes $570,389.28 of missed payments from October 2025 to September 2026 and $113,481.64 of property tax arrears, per the Payout statement, Sept. 15, 2026, Ex. "19" to Peakhill affidavit, p. 102.

Collecting the rent did not, in Peakhill's account, make it the manager. On April 8 its lawyers wrote to the company, the guarantors and the company's property manager that "the Lender has not taken possession of the Properties," and that control, management and maintenance "remain entirely the responsibility of the Borrower and [the property manager] save for collecting rents from the tenants." Tenants, the letter said, had been "raising serious concerns regarding the poor maintenance, or complete absence of maintenance, of the Properties." It demanded that all outstanding maintenance issues be rectified immediately and that the company and the guarantors say in writing whether they intended to relinquish possession, per the Robins Appleby letter, Apr. 8, 2026, Ex. "20" to Peakhill affidavit, pp. 105–106.

Six orders from the town, six from the fire department

Between February and June 2026 the Town of Plympton-Wyoming issued six orders concerning the property's condition and maintenance, Peakhill's affiant says. A February 11 order under the town's tidy yard by-law dealt with an overflowing dumpster and the garbage around it; an April 20 property standards order, with deteriorated soffit and fascia boards; two tidy yard orders of May 20, with, among other things, grass and weeds over eight inches high and debris and waste throughout the property, per the Peakhill affidavit, Sept. 24, 2026, para. 29. The property standards order of June 4, after an inspection of 3962 the day before, found squirrels in the undersides and support structures of the porches, leaking sump-pump discharge piping, a sump-pump circuit that "continues to trip during operation," and foundation walls showing "vertical cracking and evidence of water infiltration." It required a structural stability and assessment report from a licensed professional engineer, per the Town order, June 4, 2026, Ex. "23" to Peakhill affidavit, pp. 231–232, 238–239. On June 30 the town ordered a rodent eradication program "for the entire complex," per the Town order, June 30, 2026, Ex. "23" to Peakhill affidavit, pp. 243, 246.