Zonix Homes: the tower site goes to a receiver after three adjournments

On October 15, 2026, Justice Jana Steele of the Ontario Superior Court of Justice (Commercial List) appointed TDB Restructuring Limited receiver and manager of the site planned for the "Zonix Tower" condominium project in Markham, and related property, without security, under s. 243(1) of the Bankruptcy and Insolvency Act and s. 101 of the Courts of Justice Act, per the Appointment Order, Oct. 15, 2026, preamble and para. 2. The applicant, Cameron Stephens, had held the first mortgages on the site until July 2025, when it subordinated them to a refinancing by Vector Financial Services Limited and Olympia Trust Company, the Vector Creditors. The Vector Creditors supported the application, the respondents did not oppose it, and Justice Steele found it "just and convenient" to appoint a receiver and granted the order "with immediate effect." The endorsement also recorded the route there: "There were three prior adjournments in this matter because the respondents had entered into the APS … however, the transaction still remains conditional," per the Endorsement of Justice Steele, Oct. 15, 2026, paras. 2–3, 8–9, 15.

The land lies on the boundary between Toronto and Markham, northeast of Steeles Avenue East near its intersection with Yonge Street: about 2.3 acres in two adjoining parcels, seven addresses on Steeles Avenue East and seven on Highland Park Boulevard. It was planned as the "Zonix Tower," two high-rise residential condominium buildings with approximately 1,060 units, presales expected in or about February 2025 and substantial completion targeted for January 2031. The project obtained zoning approval and site plan approval; "however, presales have not been initiated, and no construction activities have commenced on the Real Property to date," the vice president of the special loans department at Cameron Stephens Mortgage Capital Ltd. swore on June 9, 2026, per the Application Record, June 18, 2026, Tab 2, paras. 8–10 and the Appointment Order, Oct. 15, 2026, Schedules "A" and "B".

A first mortgage that moved to second

Title to the Steeles Avenue addresses is registered to Zonix Homes Inc. and to the Highland Park addresses to Zonix Dudley Inc., which the application calls the Nominees. With eleven other corporations, the Non-Borrower Beneficial Owners, they hold 100% of the beneficial interest in the land. Cameron Stephens' commitment letter of February 15, 2024 provided $21,457,000 to partially refinance existing indebtedness on the project and $2,543,000 to buy 45 Highland Park Boulevard, a $24,000,000 facility inclusive of all financing costs, secured by, among other things, first-ranking mortgages on both parcels registered March 21, 2024. Four principals of the Nominees guaranteed the loan, and the eleven beneficial owners consented to it and charged their own beneficial interests in Cameron Stephens' favour, per the Application Record, June 18, 2026, Tab 2, paras. 4–7, 11, 24–28.

The loan went into default on or about April 1, 2025, when the Nominees did not repay the full balance at maturity, the affidavit says. Demands followed on May 9, then a forbearance to June 13, and on July 14, 2025 an accommodation agreement that extended the forbearance to April 30, 2026 to permit a refinancing with Vector Financial Services Limited. The agreement estimated the residual principal left after the refinancing at approximately $3,370,803, at 15% a year compounded monthly, to be repaid with an interest reserve Cameron Stephens agreed to fund and the applicable costs by April 30, 2026. The Vector Creditors advanced $24,250,000 and registered first-ranking charges on both parcels on July 24, 2025. Under a subordination and standstill agreement, Cameron Stephens subordinated its security to theirs and agreed to take no enforcement step against the Nominees without at least 90 days' prior written notice. On or about July 25, 2025 it received a partial payment of $21,331,563.20, per the Application Record, June 18, 2026, Tab 2, paras. 30–39.

April 30 passed without repayment. Cameron Stephens' demands of May 6, 2026 put the amount outstanding at $4,127,781.92, with interest of $1,692.79 a day. The Vector Creditors had demanded on May 4, citing missed monthly payments toward their interest reserve and the defaults under Cameron Stephens' security, the affidavit says on information from counsel; the Vector loan stood at $24,314,359.39 that day, with $7,611.81 a day accruing. The Vector Creditors agreed to waive the 90-day notice so that Cameron Stephens could apply for a receiver, per the Application Record, June 18, 2026, Tab 2, paras. 40–45, 49.

The owners' counsel, in an aide memorandum of September 21, says Zonix "spent several years pursuing the Project including retaining of planners, architects, engineers, environmental and transportation consultants. Unfortunately, the market conditions changed," per the Aide Memorandum of the Respondents, Sept. 21, 2026, para. 2. It says Cameron Stephens began renewal discussions in January 2025 and told Zonix two weeks before the maturity date, for the first time, that it would not renew; no response from Cameron Stephens to that account is in the record read for this piece. The memorandum puts the balance left owing to Cameron Stephens at approximately $4 million, "subject to the arguments raised by Zonix with respect to certain fees and interest charges," and says Colliers listed the land on May 16, 2025 at $41 million, per the Aide Memorandum of the Respondents, Sept. 21, 2026, paras. 3, 5–6. In August the respondents told Justice Black that, according to Colliers, "the (large) scale of the proposed development is causing challenges in the current market," per the Endorsement of Justice Black, Aug. 12, 2026, para. 13.

One sale, three adjournments

On April 27, 2026, the Nominees entered into an agreement of purchase and sale with 17767749 Canada Inc., since assigned to De Shan Foundation Inc., per the Aide Memoire of the Vector Creditors, Sept. 21, 2026, para. 5. Counsel for Cameron Stephens described its terms in a supplementary affidavit: a gross price of $31,000,000 with a closing credit of $1,200,000 to the purchaser for legal fees and transaction costs, for an effective price of $29,800,000, per the Supplementary Motion Record of the Applicant, Sept. 21, 2026, Tab 1, para. 7. The respondents told the court the purchaser was pursuing a long-term care facility on the site and that its development plans were "highly supported by the municipality and the Ministry of Health," per the Aide Memorandum of the Respondents, Sept. 21, 2026, para. 7.

On August 12, when the application was scheduled to be heard, the respondents asked for more time: the purchaser had extended due diligence by 60 days, the financing condition was open until September 19, and other conditions had an earlier deadline of August 19. "Respondents' counsel acknowledged that if those conditions are not waived by August 19, the proposed receivership will be inevitable," Justice Black wrote, describing the lenders' agreement to wait as "understandably somewhat grudging." The judge set a case conference for August 21 and added: "I understand the concerns of Cameron Stephens and Vector that they do not wish to be strung along as substantial interest charges continue to accrue," per the Endorsement of Justice Black, Aug. 12, 2026, paras. 15–19.

The due diligence condition was waived on August 19; other conditions, including the financing, development and intended use, and environmental conditions, remained, per the Aide Memoire of the Vector Creditors, Sept. 21, 2026, para. 6. On August 21 Justice Koehnen adjourned to September 22: "If the financing condition has not been waived by September 22, then, in principle, a receivership is likely to follow," per the Endorsement of Justice Markus Koehnen, Aug. 21, 2026, para. 2. Three days later the respondents' counsel wrote to the lenders' counsel, in a letter marked with prejudice, that if the financing condition was not waived the respondents would not oppose the appointment of a receiver, per the Supplementary Motion Record of the Applicant, Sept. 21, 2026, Tab 1, para. 13.