The court-appointed Monitor in CCAA proceedings brought a motion to approve a CSA Plan disclaiming 314 of 329 existing condominium sale agreements for an 85-storey tower at 1 Bloor Street West, Toronto, to approve a Deposit Return Protocol for refunding approximately $105 million in insured deposits, and to approve a reconfiguration reducing total residential units to 411.
The Monitor demonstrated that disclaimers would generate incremental proceeds exceeding $200 million by enabling resale at higher market prices under a luxury hotel brand.
The court applied the established three-part test for disclaiming pre-construction sale agreements under s. 32 of the CCAA, finding that the senior secured lenders held first-ranking priority, that failure to disclaim would amount to a preference for purchasers, and that the equities did not support maintaining the existing agreements.
The motion was granted, the Deposit Return Protocol and Monitor's reports were approved, and a sealing order was granted over confidential market analysis appendices.
