Business Development Bank of Canada v 170 Willowdale Investments Corp.
Business Development Bank of Canada
Law Firm / Organization
Aird & Berlis LLP
170 Willowdale Investments Corp.
Law Firm / Organization
Morse Shannon LLP
Lawyer(s)

David M. Trafford

Law Firm / Organization
Harrison Pensa LLP
The Fuller Landau Group Inc., Moving Party
Law Firm / Organization
Miller Thomson LLP
Lawyer(s)

Tony Van Klink

The Fuller Landau Group Inc., Court-appointed Receiver
Law Firm / Organization
Fuller Landau LLP
Lawyer(s)

David Filice

Key Points:

  • Context: Application under Bankruptcy and Insolvency Act and Courts of Justice Act regarding the administration and distribution of a debtor’s assets.
  • Receiver’s Role:

    • Appointed on May 23, 2023, to manage and realize the assets of the debtor, 170 Willowdale Investments Corp..
    • Oversaw the sale of the debtor’s primary asset (hotel property) for $8 million.
    • Filed reports recommending the distribution of proceeds and discharge of their duties.
  • Distributions Ordered:

    • Payments to the Canada Revenue Agency for outstanding tax liabilities.
    • Amounts to RBC for secured ($851,578.09) and unsecured ($60,926.23) claims.
    • Reserve funds for employee claims and administration costs.
    • Surplus ($1,228,879.66) to be distributed to the debtor after creditor claims are satisfied.
  • Dispute Between Debtor and RBC:

    • The debtor challenged RBC’s claim to proceeds from the real property, arguing that RBC lacked security over the property itself and thus over its sale proceeds.
    • The court found RBC’s general security agreement valid and enforceable over the proceeds, dismissing the debtor’s objections.
  • Court’s Findings:

    • RBC had a perfected security interest in the proceeds, supported by a General Security Agreement.
    • The sale proceeds are part of the receivership estate and subject to secured claims.
    • The debtor is still entitled to surplus funds after creditors are paid in full.
  • Outcome:

    • The court approved the Receiver’s actions, distributions, and fees.
    • Directed the payment of RBC’s secured claims from the sale proceeds.
    • Discharged the Receiver upon completion of its duties.
Superior Court of Justice - Ontario
CV-23-00699065-00CL
Corporate & commercial law
$ 0
Other
05 May 2023