Engagements

2220277 Ontario Inc. (650 Bay)

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

Relevant documents for the Second Sale Process, including form of offer, may be download from the Receiver’s electronic data room upon execution, submission and approval of a confidentiality agreement. A copy of the confidentiality agreement is available for review/download below.

Status Updates

On September 12, 2018, the Receiver will be making a motion to Court to obtain Court approval of, among other things, various amendments to the terms of the Second Sale Process. Such amendments include:

  • granting the Receiver the discretion to extend the time period for the [Second] Sale Process, by an additional 115 days, to January 31, 2019;
  • deleting paragraph 14 of the [Second] Sale Process, thereby removing Zaherali Visram’s right of first refusal contained therein;
  • providing that the Receiver cannot accept any offer for less than $8 million without the consent of Zaherali Visram; and
  • declaring that the Receiver is authorized, but not required, to list the Real Property for sale with a commercial real estate broker on such terms and at such list price as the Receiver may determine in its sole discretion.

For more information about the Second Sale Process, interested parties may contact:

Noah Litwack
T: 416.496.3719
E: nlitwack@farbergroup.com

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