The applicant, KingSett Mortgage Corp., sought the appointment of KSV Restructuring as receiver over the property of the debtors, Mapleview Developments Ltd., Pace Mapleview Ltd., and 2552741 Ontario Inc., due to default on significant loan facilities.
The application also requested super priority charges for the receiver and a borrowing charge.
The debtors did not appear, but their principals/guarantors and other creditors/lienholders were represented and did not oppose the relief.
The court applied the "just or convenient" test under the Bankruptcy and Insolvency Act and the Courts of Justice Act, finding that the contractual right to appointment and the circumstances of the default made the receivership appropriate.
The application was granted, and the proposed order, consistent with the Commercial List Model Order, was approved.
