Tuesday, July 23, 2024

Ottawa Train Yards placed in receivership over owner’s unpaid $39 million loan

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One of Ottawa’s largest shopping centres has been placed in receivership over an outstanding $39 million loan by the owner of the property.

The Ontario Superior Court of Justice appointed Grant Thornton Limited as receiver and manager of the assets of Ottawa Train Yards on Industrial Avenue.

Court documents on the Grant Thornton Limited website show Manulife (The Manufacturers Life Insurance Company) filed an application for Grant Thornton Limited to be appointed the receiver of all assets after the owner failed to make payment on an outstanding loan.

141 Ontario is the owner of a portion of the Ottawa Train Yards shopping district, which has over 150 shops and services.  Over the years, there have been several empty storefronts at Ottawa Train Yards, but stores remain open for business this week.

Manulife extended a $45.5 million loan to 141 Ontario. According to the court documents, the loan matured and was due on Feb. 1, 2024, but 141 Ontario failed to repay the loan upon maturity. As of March 21, 224, $39.4 million remains outstanding under the loan.

“141 Ontario has largely been non-responsive to Manulife’s repeated communications regarding the obligation to repay the Loan, both before and after the maturity date,” says the documents. “141 Ontario has not engaged in any constructive communication with Manulife regarding its obligation to repay the Loan.”

Manulife advised 141 Ontario in writing last August and November that it would not offer a renewal of the loan upon its maturity.

The documents show Manulife is 141 Ontario’s major secured creditor.

“Manulife has lost confidence in 141 Ontario’s willingness and ability to effectively manage, preserve and protect the Property, which constitutes Manulife’s primary collateral for its very substantial Loan,” says the court filing.

Grant Thornton was granted the Receivership Order on June 19.

According to Grant Thornton, it commenced “safeguarding and taking control of the real property” of 141 Ontario when the Receivership Order was issued.

“The Receiver has not been provided with any of the Companies’ books and records,” the letter says.

“As such, the Receiver does not have the net book value of the Company’s assets, or a complete list of creditors. The Receiver continues to pursue the recovery of the Company’s books and records from 141 Ontario and Controlex Corporation.”

Grant Thornton says there are two creditors who have registrations against the company and/or the land – Manulife and Bank of Montreal.

The Ontario Superior Court of Justice ruling to appoint a receiver states Grant Thornton is empowered and authorize to manage, operate and carry on the business of the debtor.

This is a developing story. CTV News Ottawa will have the latest as it becomes available

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