Key Issues

1. Receiver’s Motion:

   • Approval of sale process and transaction.
   • Approval and vesting order.
   • Approval of Receiver's reports, fees, disbursements, and interim distribution to the first secured creditor.

2. Respondents' Requests:

   • Adjournment of the motion to secure financing.
   • Access to confidential sale documents.

3. Third-Party Bidder’s Claim:

   • Consideration of a late offer made after the sale agreement.

Background

• Parties:
  • Applicant: First Source Financial Management Inc. (secured creditor).
  • Respondent: Chacon Strawberry Fields Inc. (owner of a retail plaza).
  • Receiver: Fuller Landau Group Inc.
• Property: A fully leased retail plaza in Caledon, Ontario.
• Timeline:
  • Receiver appointed: July 19, 2024.
  • Marketing and bidding process: September to November 2024.
  • Purchaser's bid accepted: November 13, 2024.

Court's Findings

1. Adjournment Request Denied:

   • The respondents failed to demonstrate sufficient financial readiness to redeem mortgages.
   • Delays could undermine the integrity of the court-approved sales process.

2. Sale Process Upheld:

   • The process followed principles from Royal Bank of Canada v. Soundair Corp..
   • Marketing was comprehensive, and the Purchaser’s bid was highest and unconditional.

3. Late Bid Rejected:

   • Accepting bids post-deadline undermines fairness and the process’s integrity.

4. Approval and Vesting Order Granted:

   • The sale to the Purchaser approved, extinguishing prior encumbrances.

5. Interim Distribution Approved:

   • $16 million to First Source as the first-ranking secured creditor.

6. Sealing Order Granted:

   • Confidential transaction details sealed to protect commercial interests.

7. Other Relief Approved:

   • Receiver’s reports and fees found reasonable and necessary.

Conclusion

• The Receiver’s motion was fully granted. 
• No damages or costs were awarded explicitly as this was a receivership matter focused on asset disposition and creditor repayment