Engagements

Hutchens et al

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Background

Interim Receivership

On February 28, 2019 by Order (the “Interim Receiver Order”) of the Ontario Superior Court of Justice (Commercial List) (the “Court”), A. Farber & Partners Inc. (“Farber”) was appointed as interim receiver (the “Interim Receiver”), pursuant to section 101 of the Courts of Justice Act, R.S.O. 1990, c. C.43, as amended, without security, of all of the assets, undertakings and properties of Sandy Hutchens, Tanya Hutchens and entities referred to in Schedule “A of the Interim Receiver Order (defined as the “Debtors”) including the real property attached in Schedule “B” acquired for, or used in relation to a business carried on by the Debtors, including all proceeds thereof (the “Property”).

Among other matters, the Interim Receiver’s powers were investigatory and monitoring in nature.

Receivership Status Updates

On March 18, 2019, Farber’s appointment as receiver (the “Receiver”) was confirmed to continue by Order of the Court (the “March 18 Order”).

The March 18 Order provided for, among other things, the authority and discretion to take possession of, and exercise control over, various real properties in the Greater Sudbury Area, Ontario and Innisfil, Ontario (the “Income Producing Property”).  Accordingly, all tenants of the Income Producing Property are required to forward all rents to the Receiver, or its duly authorized agent, from March 18, 2019 onward.

On June 7, 2019, the Court issued an Order (the “June 7 Order”) that provided for, among other things, the Receiver’s authority and discretion to take possession of, and exercise control over, various additional real properties located in the Greater Toronto Area and in Innisfil, Ontario (the “Additional Properties”).  Accordingly, all tenants of the Additional Properties are required to forward all rents to the Receiver, or its duly authorized agent, from June 7, 2019 onward.  Going forward, any references to the Income Producing Property shall include the Additional Properties.

Tenants may contact the Receiver at the coordinates listed below.

On July 5, 2019, the Court issued a Judgment (the “July 5 Judgment”) providing for, among other things, the declaration of certain judgments of the United States District Court for the Eastern District of Pennsylvania against Sandy Hutchens and Tanya Hutchens, jointly and severally in the amount of US$26,774,736.09 (the “US Judgments”), as recognized and enforceable in Ontario.

The July 5 Judgment also provided for, among other things, the continuation of the receivership administration and the stay of certain provisions of the July 5 Judgment until after certain appeals from the US Judgments have been decided by the United States Court of Appeals for the Third Circuit.

Income Producing Property Realization

On April 25, 2019, the Court issued an Order (the “April 25 Order”) providing for, among other things, the Receiver’s authorization to list and sell certain parcels of the Income Producing Property and an additional residential real property of the Debtors.

On June 7, 2019, the Court issued the June 7 Order which provided for, among other things: the approval and sale of the real property municipally known as 42 Clemow Avenue, Sudbury, Ontario (the “Clemow Property”); the vesting of the Clemow Property in the purchaser free and clear of all liens, encumbrances, etc.; and the approval of the proposed distribution of the proceeds from the sale of the Clemow Property.

List of Real Properties Currently Subject to Court-Approved Sale Processes

Interested parties may contact the Receiver or its listing agent(s) to discuss particulars of the current real property sale offerings

Creditor or Tenant Inquiries

For creditor or tenant inquiries, please contact:

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

Paul Denton
T: 416.496.3773
E: pdenton@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

Application Materials

Court Orders & Endorsements

Service List