Wilson Heights: the Millwick Drive receivership ends in a refinancing

Early in July 2026, commercial tenants in four buildings in North York were handed one-page irrevocable directions dated July 6. Venue 1212 in Unit 1 of 126 Millwick Drive got one, as did Plush Studios in Unit 5B, Elysian Lounge at 134 Millwick, Scrap for Cars and Lighthouse Chapel at 143 & 145 Millwick, and Andrew Richard Outdoor Ltd. at 3019 Dufferin Street. Each said that rent from June 19 onward was payable only to the court-appointed receiver, not to the landlord or "any member of the Luxor Group," and each set one sentence in capitals: "IF YOU PAY ANY PARTY OTHER THAN THE RECEIVER, IT WILL NOT CONSTITUTE EFFECTIVE PAYMENT OF YOUR RENT." The landlords' own principals signed them, on a demand from the receiver's counsel, and the receiver delivered them on or around July 10, per the First Report of the Receiver, Aug. 14, 2026, para. 28, App. "E".

The landlords are three Ontario real estate holding companies. Wilson Heights Investments Ltd. owns 126 Millwick, a nine-unit, 42,900-square-foot industrial property on a 2.33-acre lot, and 134 Millwick, four units and 18,000 square feet on an acre; 2276918 Ontario Inc. owns 143 & 145 Millwick, four units and 14,800 square feet on 1.13 acres; Pauline Centre Corp. owns 3019 Dufferin, a 13,660-square-foot commercial property on half an acre. Hillmount Capital Mortgage Holdings Inc. holds a first mortgage on each. By the receiver's account the companies defaulted by missing mortgage payments, leaving property taxes unpaid, failing to deliver financial statements within 120 days of year end and letting work orders stand against 126 Millwick, 134 Millwick and 3019 Dufferin, per the First Report of the Receiver, Aug. 14, 2026, paras. 8–14. On Hillmount's application, Justice W.D. Black appointed Zeifman Partners Inc. receiver and manager on June 19, 2026, under s. 243(1) of the Bankruptcy and Insolvency Act and s. 101 of the Courts of Justice Act, per the Order (Appointing Receiver), June 19, 2026, para. 2. The same day he appointed Zeifmans over two related companies, St. Gaspar's Investment Corp. and St. Gaspar's Development Corp., which owe Hillmount a further $17,939,358.66; the receiver puts the two debts together at approximately $33,016,145.49, per the First Report of the Receiver, Aug. 14, 2026, para. 13, App. "B".

Two months later to the day, Justice Barbara Conway signed the order that ends it. "The receivership is being terminated because the Hillmount loans are being refinanced pursuant to the Refinancing Transactions," she wrote on August 19. No one opposed the receiver's motion; she granted every approval it asked for and signed the discharge order with immediate effect, per the Endorsement of Justice Conway, Aug. 19, 2026, paras. 3–4, 8.

Who was collecting the rent

Zeifmans took possession, secured Units 5A and 5B at 126 Millwick, arranged insurance and retained Sterling Karamar Property Management. On June 22 it wrote to the debtors' two principals for the companies' records, per the First Report of the Receiver, Aug. 14, 2026, paras. 16, 19. One of the principals introduced a family friend who, the report says, undertook to be the receiver's primary point of contact and to help it get what it had asked for. What came back "contains significant deficiencies, which has materially hindered the Receiver's review." At the date of the report the receiver was still waiting for a listing of assets and liabilities, particulars of litigation, leases and rent ledgers, support for the prepayments and credits tenants claimed, and tax filings, per the First Report of the Receiver, Aug. 14, 2026, paras. 20–22.

The receiver says its efforts "have been impeded by incomplete production, limited cooperation from the Debtors, and instances of interference with the Receiver's administration of the Property." The debtors, the family friend and employees of other companies controlled by one of the principals "continue to position themselves as the primary point of contact to tenants and occupants," the report says, and that conduct "creates a risk that funds properly belonging to the receivership estate are being diverted from the Receiver's control," per the First Report of the Receiver, Aug. 14, 2026, paras. 24–25, 30. On July 3 the receiver's counsel wrote to both principals that tenants and their lawyers had reported emails asking that rent be paid in cash, a "purported 10% penalty" for tenants who did not comply, and, from counsel to one commercial tenant, a statement by the debtors' representatives that the receivership orders were no longer effective because the debt had allegedly been refinanced or repaid. "Those representations are false," the letter says, and it warns that the receiver would otherwise seek an order finding each principal in contempt, per the First Report of the Receiver, Aug. 14, 2026, App. "C". The receiver wrote the same day to two employees of the Luxor Group, directing them to stop collecting rent. The signed directions to tenants followed, and still, by the report's account, the debtors and people authorized by them "continue to issue conflicting instructions to tenants and occupants of the Real Property regarding the Receiver's authority," per the First Report of the Receiver, Aug. 14, 2026, paras. 27–29.

A church no one had listed

At 134 Millwick the receiver found a tenant, TNT Church, that "had not previously been disclosed to the Receiver and was not reflected in the tenancy information made available by the Debtors." Centreport Global Ministries, in Unit 5A Rear of 126 Millwick, paid no July rent to the receiver; the debtors said it had prepaid July before the appointment, and neither Centreport nor the debtors produced anything to verify that. SRS Auto Service Inc., in Unit 6B, said a credit arrangement with the debtors and a June prepayment covered its July rent, and the debtors' representatives offered only emails referring to it. Fogler, Rubinoff LLP, for the receiver, sent notices of default on July 28 claiming July arrears of $5,650 from Centreport and $13,560 from SRS, each inclusive of HST, per the First Report of the Receiver, Aug. 14, 2026, paras. 35–37, Apps. "F", "G".

In the basement of 3019 Dufferin, the debtors told the receiver, the occupants used the space free of charge. On a visit, some of those occupants told the receiver's representatives that they made monthly payments. The pastors who act as the occupants' points of contact were then asked to propose a rent; at the date of the report no proposal had come and nothing had been paid for July, per the First Report of the Receiver, Aug. 14, 2026, para. 38. Between June 19 and August 11 the receiver collected $191,910 in rent across the four properties, per its Interim Statement of Receipts and Disbursements, App. "L".

The City of Toronto's work orders predate the receivership. The receiver's summary lists an order at 134 Millwick dated May 16, 2024, for unpermitted work including load-bearing walls and a mezzanine, and one at 126 Millwick dated June 27, 2025, for an unauthorized two-storey frame addition about 120 feet long on the west side of the building, per the First Report of the Receiver, Aug. 14, 2026, App. "H". Existing and potential litigation the receiver could not fully review "will remain matters for the Debtors following the Receiver's discharge," per the First Report of the Receiver, Aug. 14, 2026, paras. 40–41.