Key Points:

• Objective of the Applicant:
  2531005 Alberta Ltd. sought an order to appoint KSV Restructuring Inc. as a receiver for KEL’s assets and approve the sale of KEL’s real estate to 2531005 Alberta Ltd.
• Loan and Default History:
  KEL had taken a loan of $1.4 million from ATB in 2011, secured by two commercial condominium units. After several defaults, the loan was transferred to 2101122 Alberta Ltd., and later assigned to 2531005 Alberta Ltd. The outstanding debt had grown to approximately $2.45 million.
• Assets and Financial Condition of KEL:
  KEL’s only assets are two commercial condominium units, with monthly revenue of $10,000 and expenses of $31,000, leading to a $21,000 monthly deficit. Previous efforts to sell these units failed, and the purchase price under the proposed sale was approximately $2.54 million, significantly higher than their appraised value.
• Court's Decision:
  The court dismissed the application for a receivership, noting:
  • There was no significant risk to the security holder.
  • The debtor, KEL, consented to the sale, and the assets required minimal management.
  • Internal disputes among KEL shareholders did not justify court intervention.
  • The court viewed other alternatives as viable, making a court-appointed receivership unnecessary.

Outcome:

The application for the appointment of a receiver was denied, and the sale was not approved by the court.

There was no monetary award, costs, or damages granted in this case.