Court File and Parties

COURT FILE NO.: CV-21-00660655-0000

DATE: 20210831

SUPERIOR COURT OF JUSTICE - ONTARIO

RE: Royal Bank of Canada, Plaintiff

AND:

Blue Health Services Inc., Hesham Abdalla, Mohamed Ayyad, Yasser A. Khan, Defendants

BEFORE: C.J. Brown J.

COUNSEL: Rachel Moses, Counsel for the Plaintiff, rmoses@mindengross.com

HEARD: In writing

ENDORSEMENT

[1] The plaintiff, Royal Bank of Canada (“RBC”), brings this motion in writing for noting in default of the defendant, Blue Health Services Inc. (“the Borrower”), for failing to deliver a notice of intent to defend or statement of defence within the prescribed time pursuant to the Rules of Civil Procedure, and default judgement against the Borrower for the substantial loans that it borrowed and that remain outstanding. The action will continue as against the guarantors of the loans, Hesham Abdalla, Mohamed Ayyad and Yasser A. Khan.

[2] The Borrower applied for the loans and a Visa card facility in January and February 2020. The Borrower ultimately defaulted on the loans. As at March 12, 2021, the Borrower owed $500,402.74 with respect to a revolving demand facility and interest at RBC’s prime rate plus 0.00% interest before and after judgment; $108,349.12 with respect to a Visa facility and interest from March 13, 2021 at 19.99% per annum before and after judgement; and $1,681,545.58 as at March 23, 2021 with respect to a non-revolving lease facility and interest thereon from March 24, 2021. Demand in writing was made for payment by RBC to the Borrower on March 3, 2021 and RBC terminated credit on March 12, 2021. Also on that date a Notice of Intention to Enforce Security pursuant to the General Security Agreement signed between the parties was sent.

[3] As at March 23, 2021, the Borrower was indebted to RBC pursuant to the Master Lease Agreement in the amount of $1,681,545.58, comprising principal and interest.

[4] As at August 9, 2021, the amount of indebtedness was $1,697,147.31.

[5] All facts and supporting documents are set forth in the supporting affidavit of Rachel Moses, contained in the plaintiff’s motion record.

[6] Having reviewed all of the voluminous documentation placed before me by RBC, I am satisfied that the Borrower is indebted to RBC in the current amount of $505,441.04 plus post-judgment interest thereon at RBC’s prime rate of interest per annum in effect from time to time plus 0.00% per annum from August 9, 2021 with respect to an operating facility; $117,250.07 plus post-judgment interest at the rate of 19.99% per annum from August 9, 2021 with respect to the Visa facility; the sum of $1,697,147.31 plus post-judgment interest thereon at RBC’s prime rate of interest per annum in effect from time to time from August 9, 2021 with respect to the lease facility. The Borrower shall pay to RBC these amounts immediately. Further, the Borrower shall pay to RBC its costs in the amount of $5,563.70 plus post-judgment interest at the rate of 2% per annum from the date of judgment.

[7] Judgment to go as signed.

Carole J. Brown J

Date: August 31, 2021