Crystal Heights Co-operative Inc.

Receivership

Page last updated: October 21, 2016

This page is for information purposes only and you should consult your professional adviser if you have any questions or are uncertain as to your rights or obligations.


On September 30, 2015, on the application of Canada Mortgage and Housing Corporation (“CMHC”), an Order (the “Receivership Order”) was granted by the Ontario Superior Court of Justice (the “Court”), pursuant to section 101 of the Courts of Justice Act, R.S.O. 1990, c.C-43, as amended, that appointed PricewaterhouseCoopers Inc. as receiver and manager (the "Receiver"), without security, of all of the assets, undertakings and properties of Crystal Heights Co-operative Inc. (“Crystal Heightsor theCompany”) acquired for, or used in relation to the business carried on by the Company, including the real properties bearing Parcel Identification Number 31515-0293 (LT) and know municipally as 1-21, 24,29,36 Clearview Drive and 12-18, 26-38 Crystal Place, Sault Ste. Marie, Ontario and all proceeds thereof (the “Real Property”).

Pursuant to the Receivership Order, the Receiver is now responsible for the Real Property and on September 30, 2015 a notice was sent to all residents to provide them with information relating to the receivership proceedings, a copy of which is attached below. On Wednesday, October 7, 2015, the Receiver will be holding town hall meetings for all residents of Crystal Heights’ Real Property to answer any questions that they might have. The town hall meetings will be held at the following locations and times:

  • Common room adjacent to the property manager’s office
  • 24 Clearview Drive
  • Town hall 1: 3:00 p.m.
  • Town hall 2: 6:00 p.m.

A Notice and Statement of the Receiver was mailed to all known creditors of the Company on October 7, 2015.

 
Notice to Residents & Frequently Asked Questions
Notice to Residents (September 1, 2016)
Notice to Residents (August 19, 2016)

Status Update at October 21, 2016

On October 21, 2016 the Court issued and order which, among other things:

  1. approving the Fourth Report and the activities of the Receiver described therein;
  2. approving the Receiver’s Fourth R&D;
  3. approving the fees and disbursements of the Receiver and legal counsel;
  4. authorizing and directing the Receiver to, subject to maintaining sufficient reserves to satisfy the remaining costs of the receivership proceedings to pay the CMHC Distribution to CMHC;
  5. discharging the Receiver, subject to the Receiver completing its administration of the receivership proceedings and filing a Discharge Certificate with the Court.

Status Update at October 14, 2016

On October 14, 2016 the Receiver filed its fourth report (the “Fourth Report”) with the Court to:

  1. provide the Court with information in respect of:
    1. the closing of the Sale Transaction;
    2. the repayment of the Receiver’s Borrowings;
    3. the Receiver’s activities since the date of the Third Report to the date of the Fourth Report;
    4. the Receiver’s statement of cash receipts and disbursements from the date of appointment to October 13, 2016 (the “Receiver’s Fourth R&D”);
    5. the professional fees in respect of the Receiver and its legal counsel (“Professional Fees”); and
    6. the Receiver’s request for approval of the CMHC Distribution (as defined herein) to CMHC.
  2. to seek an order of the Court:
    1. approving the Fourth Report and the activities of the Receiver described therein;
    2. approving the Receiver’s Fourth R&D, including the remaining professional fees;
    3. approving the fees and disbursements of the Receiver and legal counsel;
    4. authorizing and directing the Receiver to, subject to maintaining sufficient reserves to satisfy the remaining costs of the receivership proceedings to pay the CMHC Distribution (as defined in the Fourth Report) to CMHC;
    5. discharging the Receiver, subject to the Receiver completing its administration of the receivership proceedings and filing a certificate (the “Discharge Certificate”) with the Court confirming that the Receiver has completed all of the steps necessary to complete the receivership proceedings.

The motion will be heard on October 21, 2016 before Senior Justice Gordon.

Status Update at September 1, 2016

On August 31, 2016 the Sale Transaction with Crystal Heights SSM Inc. was closed.

Status Update at August 26, 2016

On August 25, 2016, the Court issued an order (the “Administrative Order”) approving:

  1. the Third Report of the Receiver and the Confidential Supplement and the activities of the Receiver; and
  2. the Receiver’s Third R&D.

and an order (the “Sale Approval and Vesting Order”), which among other things, approved:

  1. the Sale Transaction;
  2. the sealing of an appraisal of the Real Property which will be included as a Confidential Supplement to this Honourable Court (the “Confidential Supplement”);
  3. the sealing the Bid Summary (as defined in the Third Report) which also will be included in the Confidential Supplement;
  4. the sealing the unredacted Mist agreement of purchase and sale (“Mist APS”) containing the commercially sensitive terms of the Mist APS which, as well, will be included in the Confidential Supplement, to be filed with Court, and
  5. the vesting of Crystal Height’s right, title and interest, if any, in and to the Real Property free and clear of all encumbrances, to Crystal Heights SSM Inc., assignee pursuant to the Mist APS.

Status Update at August 18, 2016

On August 17, 2016 the Receiver filed its Third Report to the Court (the “Third Report”) to:

  1. provide the Court with information in respect of:
    1. the activities of the Receiver since the date of the Second Report;
    2. the status of repairs and maintenance to the Real Property;
    3. an update on the Amended Sale Process (defined in the Third Report) in respect of the Real Property;
    4. a proposed sale of the Real Property (the “Sale Transaction”) to Mist Holding Inc. (“Mist”); and
    5. the Receiver’s statement of Receipts and Disbursements from September 30, 2015 (the “Date of Appointment”) to July 30, 2016 (the “Third R&D”); and
  2. to seek an order of the Court (the “Administrative Order”):
    1. approving the Third Report and the Confidential Supplement (as defined below) and the activities of the Receiver as described therein; and
    2. approving the Third R & D; and
  3. to seek an order of the Court (the “Sale Approval and Vesting Order”):
    1. approving the Sale Transaction;
    2. sealing an appraisal of the Real Property which will be included as a Confidential Supplement to this Honourable Court (the “Confidential Supplement”);
    3. sealing the Bid Summary (as defined in the Third Report) which also will be included in the Confidential Supplement;
    4. sealing the unredacted Mist agreement of purchase and sale (“Mist APS”) containing the commercially sensitive terms of the Mist APS which, as well, will be included in the Confidential Supplement, to be filed with Court, and
    5. vesting Crystal Height’s right, title and interest, if any, in and to the Real Property free and clear of all encumbrances, to Crystal Heights SSM Inc., assignee pursuant to the Mist APS.

The motion will be heard on August 25, 2016.

Status Update at May 30, 2016

On May 19, 2016, the Court issued an order:

  1. approving the Second Report of the Receiver and the activities of the Receiver;
  2. approving Receiver's Second R&D, as set out in the Second Report;
  3. authorizing an amendment to the principal Receiver’s borrowing amount from $900,000 to $1,350,000;
  4. approving that paragraph 4 of the Sale Process Approval Order be replaced in its entirety to read:
    "4. THIS COURT ORDERS that, in implementing the Sale Process, the Receiver is hereby specifically authorized and directed to:
    1. make appropriate enquiries to determine whether a not-for-profit organization or municipal service provider would be prepared to purchase the Property (a "Non-Profit Housing Transfer");
    2. enter into agreements as are necessary to effect a Non-Profit-Housing Transfer, subject to further Court Approval, and also to concurrently market the Property to other interested parties, in accordance with the Sale Process steps and timelines set out at Schedule "A" to this Order, as amended."; and
  5. approving that the Sale Process Approval Order be amended by replacing Schedule "A" to the Sale Process Approval Order - "Sale Process Timelines" in its entirety and substituting the Schedule "A" attached to this Order.

Status Update at May 20, 2016

On May 16, 2016 the Receiver filed its second report (the “Second Report”) with the Court to provide the Court with information in respect of:

  1. the activities of the Receiver since its First Report;
  2. an update on the Sale Process in respect of the Real Property;
  3. the status of repairs and maintenance to the Real Property, including related costs;
  4. the Receiver’s statement of receipts and disbursements (the “Second R&D”); and
  5. the Crystal Heights cash flow forecast from May 1 to September 3, 2016.

and to seek an order of the Court:

  1. approving the Second Report and the activities of the Receiver as described in the Second Report;
  2. approving the Second R&D;
  3. authorizing the amendments to the Sale Process Approval Order and Sale Process to:
    (a) to combine the “Phase 1 Marketing” and “Phase 2 Marketing” processes, to both be completed at the same time, with a sale of the Real Property by August 31, 2016; and
    (b) amending the “Sale Process Timelines” at Schedule “A” to the Sale Process Approval Order and replacing Schedule “A” to the Sale Process Approval Order; and
  4. authorizing an amendment to the principal Receiver’s borrowing amount from $900,000 to $1,350,000.

The motion was heard on May 19, 2016 by way of teleconference with Regional Senior Justice Gordon.

Status Update at May 10, 2016

A notice to residents was mailed on May 5, 2016 (the “Notice”) to all residents of Crystal Heights to provide information relating to repairs completed to date by the Receiver and repairs that are currently being performed. The Notice also updated residents of the Receiver’s marketing and sales process for the property.

The Notice to Residents is posted below and in the Notices tab of the website.

Notice to Residents (May 5, 2016)

Status Update at November 20, 2015

On November 18, 2015, the Court issued an order:

  1. Approving the Pre-Filing Report and the First Report of the Receiver and the activities of the Receiver as set out in the reports;
  2. Approving the Receiver’s First Statement of Receipts and disbursements as set out in the First Report; and
  3. That the maximum principal amount that the Receiver is authorized to borrow under the provisions of paragraph 22 of the Receivership Order is increased from $500,000 to $900,000 and ordered that the Receivership Order be amended to reflect the amount.

Status Update at November 16, 2015

On November 13, 2015, the Receiver filed its first report (“First Report”) to provide the Court with information in respect of:

  1. The activities of the Receiver since the date of appointment;
  2. The Sales Process commenced in respect of the Real Property;
  3. The status of necessary repairs and maintenance to the Real Property including related costs;
  4. The Receiver’s statement of receipts and disbursements (“First R&D”)

from the date of appointment to October 31, 2015; and to seek an order of the Court:

  1. Approving the Pre-Filing Report and the activities of PricewaterhouseCoopers Inc. described therein;
  2. Approving the First Report and the activities of the Receiver described therein;
  3. Authorizing an amendment to the maximum Receiver’s Borrowings provided for by the Receivership Order from $500,000 to $900,000; and
  4. Approving the Receiver’s First R&D.

A motion will be heard on November 18, 2015.

Status Update at October 1, 2015

On September 30, 2015, the Court granted an order approving a sale process (the “Sale Process Approval Order”) to be undertaken by the Receiver to market and sell the Real Property.


This Web site will be updated as information becomes available.

For more information, please contact: Natalia Chtcherbakova, Telephone: +1 416 941 8383 ext 14676, or via Email.

Contact us

Natalia Chtcherbakova

Tel: +1 416 941 8383 ext 14676
Email