Page last updated: June 24, 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 June 22, 2020, the Court made an order to commence proceedings under the Companies' Creditors Arrangement Act ("CCAA") in respect of The Clover on Yonge Inc. and The Clover on Yonge Limited Partnership. Further information on those proceedings will be posted on the following website: www.pwc.com/ca/clover-ccaa.
On March 27, 2020, 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 and manager (the “Receiver”), without security, of all of the assets, undertakings and properties (the “Property”) of The Clover on Yonge Inc., The Clover on Yonge Limited Partnership, 480 Yonge Street Inc. and 480 Yonge Street Limited Partnership (collectively the “Companies”) acquired for, or used in relation to a business carried on by the Companies, or either of them, including, without limitation, the real property known municipally as (i) 587 – 599 Yonge Street, Toronto, ON, 2 & 4 Dundonald Street, Toronto, ON and 7 & 9 Gloucester Street, Toronto, Ontario (“Clover”); and (ii) 480-494 Yonge Street, Toronto, ON (“Halo” and collectively with The Clover “Real Property”), 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 bcIMC Construction Fund Corporation and bcIMC Specialty Fund Corporation (collectively, the “Applicants”).
In accordance with the provisions of the BIA, a Notice and Statement of the Receiver (the “Notice”) will be sent to all known creditors of the Companies. A copy of the Notice will be posted on the “Notices” page of this website.
Please note that PwC has only been appointed as Receiver over the companies responsible for the 33 Yorkville, Clover and Halo projects. Other Cresford Group entities are not included in this receivership. If your query relates to any other of the Cresford Group projects or entities, please contact your normal Cresford contacts.
On June 19, 2020, The Clover on Yonge Inc. and The Clover on Yonge Limited Partnership (collectively, the “Clover CCAA Applicants”), filed a motion for an order (the “Initial Order”) declaring that the Clover CCAA Applicants are companies to which the Companies’ Creditors Arrangement Act, R.S.C.1985, c.C-36, as amended (“CCAA”) applies, and creating a separate Court file number for the CCAA proceedings of the Clover CCAA Applicants that is distinct from the receivership proceedings.
The motion will be heard on June 22, 2020.
On June 11, 2020, the Court issued the SISP Approval Order, which, among other things:
On June 2, 2020, the Receiver filed its Second Supplementary Report to its Second Report (the “June 2, 2020 Supplementary Report’) to provide the Court with an update on certain communications that have been sent over the past week to Unit Purchasers (defined in the June 2, 2020 Supplementary Report) and the Receiver’s response and proposed action in relation thereto and address comments in the Affidavit of Jason Chiu, sworn June 1, 2020 (the “Record of OTB Capital Inc.”) in respect of the time frame for the SISPs.
The June 2, 2020 Supplementary Report should be read in conjunction with the May 29, 2020 Supplementary Report and the Second Report.
On May 29, 2020, the Receiver filed the Supplementary Report to its Second Report (the “May 29, 2020 Supplementary Report”) with the Court to provide the Court with further details on the Stalking Horse Agreements. The Second Supplementary Report should be read in conjunction with the Second Report.
On May 25, 2020, the Receiver filed its Second Report (the “Second Report”) with the Court to provide the Court with the information with respect to:
The motion for an order to approve the SISPs will be heard on June 4, 2020 and the Receiver will seek an order (the “Sale Approval Order”), to among other things:
On May 15, 2020, the Court issued the Receiver’s Borrowing Order, which among other things:
On May 14, 2020, the Receiver filed a supplementary motion for the Receiver’s Borrowing Order and a Supplementary Report to the First Report ( the “Supplementary Report”) to be read in conjunction with the Receiver’s First Report, the purpose of which was to provide further details to the Court on the status of construction activities at the Halo and Clover projects, and specifically the importance of receiving additional funding for the Companies.
The motion will be heard on May 15, 2020.
The motion for the Receiver’s Borrowing Order has been rescheduled to May 15, 2020.
On May 11, 2020, the Receiver filed a motion with the Court for an order (the “Receiver’s Borrowing Order”) to, among other things, increase the Receiver’s Borrowings Charge (as defined in paragraph 22 of the Receivership Order) from (i) $16,000,000 to $43,300,000 for Clover, and (ii) from $13,000,000 to $20,200,000 for Halo, with some flexibility to allocate a limited amount from one project to the other, and in both cases, increasing the interest rate for additional borrowings from 5% to 8% plus a 1% advance fee for all additional advances in excess of the originally approved amounts.
On the same date, the Receiver filed its First Report (the “First Report”) with the Court to provide the Court with the information with respect to:
The motion will be heard on May 14, 2020.