Murtaza Tallat

The Receiver sought orders to approve a construction management contract and related financing for the Heart Lake Project, and to authorize amendments or disclaimers of pre-sale agreements for the Uptowns Project.

The court granted the relief, finding it was the best path to maximize stakeholder recovery, noting that the proposed amendments to pre-sale agreements offered homebuyers an option to retain value or claim deposits from a surety policy, and that disclaiming agreements was necessary for financing and project completion.

The court also approved sealing certain financial information to protect future marketability.

The court-appointed Receiver brought multiple motions seeking various forms of relief, including a declaration of vacant possession and writ of possession for a condominium unit (PH 07), approval and vesting orders (AVOs) for the sale of two specific condominium units (PH 02 and PH 03), prospective AVOs for five remaining units subject to sale conditions, approval of certain distributions from sale proceeds, approval of the Receiver's activities, and a sealing order for confidential appendices.

The applicant, KingSett Mortgage Corporation, and CIBC supported the relief.

The respondent, 30 Roe Investments Corp., represented by its president and personal guarantor, Raymond Zar, opposed some aspects, particularly the pre-approval of sales for remaining units without the debtor's consent and the immediate payment of HST.

The court granted most of the Receiver's requests, finding no lawful right for the occupant of PH 07, approving the sales under specific conditions, and approving distributions, with a temporary deferral on the HST payment issue to allow the respondent to provide supporting documentation.