On July 4, 2014, an application was made to the Ontario Superior Court of Justice (Commercial List) (the “Court“) by Hands-On Capital Investments Inc. seeking the appointment of a receiver and manager (the “Receiver”) over the assets, undertakings and property (collectively, the “Property”) of Pembroke Residence Ltd. operating as the Knights Inn Toronto (“Pembroke” or the “Company”). On October 17, 2014, B. Riley Farber Inc. (“B. Riley Farber“) was appointed as Receiver over the assets, undertakings and property of Pembroke pursuant to the Order of the Honourable Mr. Justice Newbould (the “Appointment Order”).
Status Updates
On January 8, 2015, the Court issued an order (the “Sales Process Order“) granting relief for, among other things, the approval of the stalking horse marketing and sales process as described in the Second Report (the “Sales Process“) and the approval of the agreement of purchase and sale (the “Pembroke APS“) entered into by the Receiver and Kevin Sit Investments Inc. (“KSI“) for the Pembroke Property, which was intended as the initial stalking horse bid.
Sales Process
The Sales Process was intended to attract interested parties for all of the Property at a price which maximized recovery of proceeds and/or the prospects of restructuring the Company for the benefit of all of the Company’s stakeholders. The Sales Process concluded at 5:00 pm Eastern Standard Time, on Tuesday, February 10, 2015 (the “Bid Deadline“), with no competing bids received by the Receiver. Accordingly, the Receiver proceeded to close the transaction with KSI.
On March 3, 2015, the Court issued an order (the “Approval and Vesting Order“) granting relief for, among other things, the approval of the sale of the Property to, and vesting of the Property in, KSI. The transaction was subsequently closed on March 16, 2015.
Bankruptcy
On February 19, 2015, pursuant to the authority granted to the Receiver by the Appointement Order, the Receiver made an assignment in bankruptcy on behalf of Pembroke and B. Riley Farber was appointed trustee in bankruptcy (the “Trustee“). The First Meeting of Creditors was held at the office of the Trustee on march 11, 2015, where the appointment of the Trustee was confirmed by creditors of the Company.
Discharge of the Receiver and Trustee
On May 12, 2015, the Court issued an order (the “Discharge Order“) granting relief for, among other things, the discharge of the Receiver pending completion of its administration and the filing of the discharge certificate with the Court.
On February 7, 2017, the Trustee in Bankruptcy was discharged pursuant to a Court Order.
Creditor or Employee Enquiries
For creditor or employee enquiries, please contact:
Hylton Levy
T: 416.496.3070
E: hlevy@brileyfin.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
Bankruptcy Documents
Court Reports
- First Report of the Proposed Receiver, dated July 4, 2014
- Second Report of the Receiver, dated December 19, 2014
- Third Report of the Receiver, dated February 19, 2015
- Fourth Report of the Receiver, dated April 19, 2015
Motion Materials
- Motion Record returnable January 8, 2015
- Motion Record returnable March 3, 2015
- Motion Record returnable May 12, 2015
Court Orders & Endorsements
- Appointment Order, dated October 17, 2014
- Endorsement re: Appointment Order, dated October 17, 2014
- Order of Justice Conway, dated January 8, 2015
- Endorsement of Justice Conway, dated January 8, 2015
- Approval and Vesting Order, dated March 3, 2015
- Ancillary Order, dated March 3, 2015
- Endorsement of Justice Newbould, dated March 3, 2015
- Discharge Order, dated May 12, 2015
- Endorsement of Justice Newbould, dated May 12, 2015
- Order Discharging Trustee, dated February 7, 2017