1682 Victoria Park: the monitor asks to end the CCAA without a bankruptcy

Albert Gelman Inc., monitor since July 17 of the CCAA that Findev Lending Inc., a secured creditor, sought for its borrower, 1682 Victoria Park Avenue Inc., asks the Ontario Superior Court of Justice on November 10 to end the proceeding and discharge it, and proposes to go without putting into bankruptcy the company now holding the debtor's excluded liabilities, 1001740770 Ontario Inc., which the record calls Residual Co. Its Third Report, dated November 2, records the decision to "proceed to terminate these CCAA Proceedings, and its mandate as Monitor, without taking any steps to cause or administer the bankruptcy of Residual Co.," per the Third Report of the Monitor, Nov. 2, 2026, paras. 1–5, 12(b), 30(b). Approving the reverse vesting order on September 15, Justice Myers wrote that some of the debtor's debts would go to a new company "that will replace the debtor as CCAA debtor (and eventually a bankrupt)," per the Endorsement of Justice Myers, Sept. 15, 2026, para. 1.

The share sale closed on October 9. At 3:48 p.m. that day the monitor delivered the certificate confirming that Findev had paid the purchase price for the shares and that the transaction "has been completed to the satisfaction of the Monitor," per the Third Report of the Monitor, Nov. 2, 2026, App. H (Monitor's Certificate, Oct. 9, 2026). The debtor, which holds title to sixty-five of the 147 townhouses in its project on Victoria Park Avenue in Toronto, left the proceeding owned by Findev, and Residual Co. took its place as the company the CCAA is about, per the Third Report of the Monitor, Nov. 2, 2026, paras. 2–3, 11, 22–23, 26.

The approval was reported here on September 16. The order left the bankruptcy to the monitor: from the filing of its certificate it was "authorized and empowered, but not required" to cause Residual Co. to make an assignment, and "entitled but not obligated" to act as its trustee, per the Approval and Reverse Vesting Order, Sept. 15, 2026, para. 24(a), (j). Among the claims bound for Residual Co., the endorsement named the Canada Revenue Agency's claim for HST, the lien claimants' unsecured claims, the claim of a creditor that registered a writ of execution after the stay, and existing unit owners' potential claims against the developer, per the Endorsement of Justice Myers, Sept. 15, 2026, paras. 6–7, 10–11. The monitor understood the HST arrears to be approximately $5,524,569.88, per the Second Report of the Monitor, Sept. 10, 2026, para. 75.

No asset went with them, the monitor reports. The subscription agreement let Findev deem certain assets of the debtor to be excluded assets, which would have vested in Residual Co. on closing, and Findev deemed none; so, in the monitor's words, Residual Co. "has no assets" other than cash held for its benefit that is to be applied to the fees and disbursements of the monitor and its counsel, per the Third Report of the Monitor, Nov. 2, 2026, para. 24.

A bill that included the bankruptcy

Findev satisfied the purchase price three ways, the report says: it assumed the registered encumbrances and liabilities ranking ahead of its mortgage, released and credit bid its own mortgage debt, and paid the monitor in cash for any other claims ranking ahead of it, the "Priority Payables". The monitor found no realty taxes outstanding on the unsold units and had written confirmation from Findev and its counsel that no condominium fees were owing, so it determined that the only Priority Payables were the fees and disbursements of the monitor and its counsel, per the Third Report of the Monitor, Nov. 2, 2026, paras. 25–26.

As at October 9 the monitor and its counsel put those at $343,766.00 including HST, a total that took in their estimated further fees to complete the monitor's mandate and to administer the bankruptcy of Residual Co., and a contingency reserve of $50,000. The monitor already held a $223,000 deposit Findev had paid it for its fees and its counsel's, and asked Findev for a further $120,766, per the Third Report of the Monitor, Nov. 2, 2026, paras. 27–28.

Findev objected, the report says, to paying anything further toward the fees of the monitor and its counsel to administer that bankruptcy, on the grounds that its principal is the sole shareholder, officer and director of Residual Co. and "would be responsible for addressing the bankruptcy of Residual Co., in his capacity as officer and director," per the Third Report of the Monitor, Nov. 2, 2026, para. 29.

The monitor determined that it was appropriate to remove the estimated fees of itself and its counsel for the prospective bankruptcy and to end the proceeding without one. It gives two reasons: as a result of the RVO, Residual Co. has no assets, and Findev's principal remains its sole director and officer and "is subject to the duties of a director and officer of Residual Co." It took $39,550 out of its own estimated fees and $15,000 out of those of Paliare Roland Rosenberg Rothstein LLP, its insolvency counsel, "leaving a balance of $66,216.00 payable on closing," per the Third Report of the Monitor, Nov. 2, 2026, paras. 30–31. Findev paid that sum in cash when the deal closed. Garfinkle Biderman LLP, the monitor's corporate and real estate counsel, holds it in trust pending approval of the fees and disbursements of the monitor and its counsel, per the same report at paras. 32 and 43.