Skywell Homes Ltd. and 2168601 Ontario Inc.

Receivership

Page last updated: March 6, 2020

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 August 8, 2019, pursuant to an order (the “Receivership Order”) of the Ontario Superior Court of Justice (Commercial List) (the “Court”), PricewaterhouseCoopers Inc., LIT (“PwC”) was appointed as receiver (the “Receiver”), without security, of all of the assets, undertakings and properties (the “Property”) of Skywell Homes Ltd. (the “Skywell”) and 2168601 Ontario Inc.  (the “216” and collectively with Skywell the “Companies”) acquired for, or used in relation to a business carried on by the Companies, pursuant to section 243 (1) of the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, as amended (the “BIA”) and section 101 of the Courts of Justice Act, R.S.O. 1990, c.C.43, as amended. The Receivership Order was granted pursuant to an application made by Cardar Investments Limited.

A Notice and Statement of the Receiver (the “Notice”) will be mailed in accordance with the provisions of the BIA. A copy of the Notice will posted on the “Notices” section of this website.


Status of File as of March 6, 2020

On March 6, 2020, the Court issued the Distribution, Fee Approval & Discharge Order, which among other things

  1. Authorized and directed the Receiver to distribute the Remaining Proceeds to Cardar, subject to the Receiver holding a Reserve to fund the remaining Outstanding Obligations;
  2. Approved the activities of the Receiver as described in the First Report and the Second Report;
  3. Approved the R&D;
  4. Approved the Receiver’s fees and disbursements for the receivership proceedings and those of its legal counsel; and
  5. Discharged the Receiver and its legal counsel, upon the filing by the Receiver of the Discharge Certificate with the Court.

Status of File as of February 27, 2020.

On February 26, 2020, the Receiver filed its second report with the Court (the "Second Report") to provide information to the Court, with respect to the Receiver's activities since the First Report and to seek an order of the Court (the “Distribution, Fee Approval & Discharge Order”):

  1. Authorizing and directing the Receiver to distribute all of the remaining proceeds realized from the sale of the Real Property (the “Remaining Proceeds”) to Cardar Investments Limited ("Cardar"), subject to the Receiver holding a reserve (the “Reserve”) to fund the remaining Outstanding Obligations (as defined in the Second Report);
  2. Approving the activities of the Receiver as described in the First Report and the Second Report;
  3. Approving the statement of receipts and disbursements for the receivership proceedings (the “R&D”);
  4. Approving the Receiver’s fees and disbursements for the receivership proceedings and those of its legal counsel; and
  5. Discharging the Receiver and its legal counsel, upon the filing by the Receiver of the Discharge Certificate with the Court certifying that it has completed its remaining duties (as detailed in the Second Report (the “Discharge Certificate”).

 The motion will be heard on March 6, 2020.

Status of File as of October 30, 2019.

On October 30, 2019 the Court issued orders, which among other things, approved the sealing of the Confidential Supplement and approved the sale of the Real Property.

Status of File as of October 24, 2019.

On October 23,2019 the Receiver filed its first report with the Court (the "First Report"), to among other things:

  1. Report to the Court on the results of the sale process for the sale of real property owned by the Companies (the "Sale Process"). The Sale Process is set out in the affidavit of Warren Kettlewell, sworn August 6, 2019; 
  2. Request approval from the Court for the sale of three pieces of residential real property owned by the Companies located at 101 Armstrong Street, 103 Armstrong Street and 620 Ballycastle Crescent (collectively, the “Real Property”); and

to seek an order from the Court:

  1. approving the sale of the Companies’ Real Property land vesting title in the proposed purchasers free and clear of all liens, charges and other encumbrances (other than certain surviving encumbrances); and
  2. sealing the Confidential Supplement to the First Report (the “Confidential Supplement”) until the earlier of the closing of the sale of the Real Property, or further order of the Court.

The motion will be heard on October 30, 2019.
 

Contact us

Tammy Muradova

Consulting & Deals, PwC Canada

Tel: +1 416 941 8383 ext. 14456

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