Engagements

2220277 Ontario Inc. (650 Bay)

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On August 1, 2017, A. Farber & Partners Inc. became the Court-appointed receiver (the “Receiver“) pursuant to section 243(1) of the Bankruptcy and Insolvency Act, R.S.C. 1985, c.B-3, as amended (the “BIA“) and section 101 of the Courts of Justice Act, R.S.O. 1990, c. C.43, as amended (the “CJA“), over all of the assets, undertakings and properties (the “Property“) of 2220277 Ontario Inc. (“222“) pursuant to an Order (the “Appointment Order“) of the Honourable Justice Mesbur of the Ontario Superior Court of Justice (Commercial List) (the “Court“).

Background

On September 26, 2017, the Court issued an Order approving, among other things, a sale process (the “First Sale Process”) for the real property municipally as 55 Elm/650 Bay Street, Toronto, Ontario (the “Real Property”). On November 2, 2017, the Court issued an Order approving, among other things, an update to the First Sale Process to include a stalking-horse bid of $12,000,000 (the “Stalking Horse Bid”).

The Receiver subsequently sought and received an Order from Court approving the transaction relating to the Stalking Horse Bid (the “Stalking Horse Transaction”). The Stalking Horse Transaction was scheduled to close on February 28, 2018.

The Stalking Horse Transaction was not completed, however, and, accordingly, the Receiver sought and received an Order of Court authorizing and approving a renewed sale process (the “Second Sale Process”). The Second Sale Process document, outlining procedures, terms and conditions, is available for review/download below.

Sale Process

Under the Court-approved Second Sale Process, interested parties were no longer subject to the provision of the stalking horse bidding process and were invited to submit offers directly to the Receiver. Offers were to be subject to Court-approval, as required under the terms of the Second Sale Process.

Status Updates

On January 21, 2019, the Court issued an Order (the “Approval and Vesting Order”) approving, among other things, a transaction for the purchase and sale of the Real Property (the “Transaction”); and, the vesting of all of 222’s right, title and interest in and to the Real Property in the purchaser.

The Court also issued a separate Order on January 21, 2019 (the “Administrative Relief Order”) approving, among other things, an interim distribution of net proceeds from the closing of the Transaction; an increase in the borrowing capacity of the Receiver; and, the authority for the Receiver to make an assignment in bankruptcy on behalf of 222, at the discretion of the Receiver.

On September 9, 2019, the Court issued an Order (the “Discharge Order”) discharging A. Farber & Partners Inc. as the Receiver.

Creditor or Employee Inquiries

For creditor or employee inquiries, please contact:
John Hendriks
T: 416.496.3701
E: jhendriks@farbergroup.com

The case updates and court filed documents on this website are for information purposes only and you should consult your financial or legal adviser if you have any questions or concerns about your rights or obligations. Additional updates on the status of these proceedings may become available in the future.

Documents

Court Reports

Motion Materials

Court Orders & Endorsements

Service List

First Sales Process – SUPERSEDED – See Second Sale Process Below

Second Sales Process