Page last updated: April 25, 2024
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.
To view information on 33 Yorkville project, please click here.
On July 7, 2022, the Court issued the Halo Discharge Order which, among other things:
On June 27, 2022, the Receiver filed its ninth report (the “Ninth Report”) with the Court to provide the Court with information on;
On the same date, the Receiver filed its motion for an order (the “Halo Discharge Order”) to, among other things:
The motion will be heard on July 7, 2022.
On December 8, 2021 the Receiver of the Halo project filed its motion with the Court for an order to, among other things:
The motion will be heard on December 17, 2021. If you intend to attend the hearing, please notify Alex Steele, counsel to the Receiver, at asteele@mccarthy.ca.
On February 18, 2021, the Court issued the following orders:
On February 17, 2021, 494 Inc. (the "Purchaser") of the Halo project confirmed that the Halo project will be developed as a purpose built rental project development. The update can be found on the Purchaser's website at halotoronto.ca.
As per the Approval and Vesting Order issued by the Court on September 15, 2020, following the closing to the Sale Transaction all existing agreements of purchase and sale entered into by the Pre-Sale Purchasers were terminated.
As per the terms of the Sale Transaction, as no offer to enter into a reinstated agreement of purchase and sale has been made, Pre-Sale Purchasers will receive an additional payment equal to 2% of the amount of the cash deposit previously paid by such Pre-Sale Purchasers from the Purchaser in addition to the full deposit amount.
The Receiver is working with the Purchaser to support issuing the payments, which are expected to be made by early April 2021. The Receiver will provide further updates regarding this process in the coming weeks.
On February 12, 2021, the Receiver filed a motion with the Court for
On February 11, 2021, the Receiver filed its Seventh Report with the Court to inform the Court of:
The motion will be heard on February 18, 2021.
On November 4, 2020, the Court issued the Second Halo Distribution Order which, among other things:
On October 31, 2020, the Receiver filed a motion with the Court for an order (the “Second Halo Distribution Order”) to, among other things:
On the same date, the Receiver filed its Sixth Report with the Court to provide the Court with the information concerning:
The motion will be heard on November 4, 2020.
On October 16, 2020, the Court issued
a. Authorized and directed the Received to make an interim distribution or distributions to the Applicants up to a total of $78.6 mln (plus accrued interest, if any);
b. Authorized and directed the Receiver to place up to a total of $42.9 mln into the Trust; and
c. Authorized and directed the Receiver to make, or arrange for Dale & Lessman LLP to make on the Receiver’s behalf, an interim distribution or distributions from the Trust funds to Aviva as set out in the Fifth Report, which distributions may be satisfied by Dale & Lessman LLP making payments of amounts from the Trust directly to Pre-Sale Purchasers (as defined in the Fifth Report) on behalf of Aviva if so directed by Aviva and agreed by the Receiver; and
d. Approved the Fifth Report of the Receiver and the activities described therein.
As noted in previous status updates, on September 15, 2020, the Court issued the Approval and Vesting Order which, among other things, approved the sale transaction contemplated by the Agreement of Purchase and Sale between the Receiver and 494 Inc. (the “Sale Transaction”) and directed the Receiver to terminate all existing agreements of purchase and sale entered into by the pre-construction unit purchasers of the Halo Project upon closing of the Sale Transaction.
The Sale Transaction has closed, and as such, all existing agreements of purchase and sale entered into by Unit Purchasers are hereby terminated and of no further force and effect.
The Receiver will be seeking Court approval to conduct a claims process to determine claims and distribute remaining funds from the sale of the Halo Project after payment of secured creditors. Further information regarding the process to reclaim the deposits will be provided shortly and will be posted on this website.
On October 9, 2020, the Receiver filed its motion
On the same date, the Receiver filed its Fifth Report with the Court in connection to the Receiver’s motion for the Halo Claims Procedure Order and the Halo Interim Distribution Order.
The motion will be heard on October 16, 2020.
The Purchaser has created a website outlining the current status and plans for the building, once the Transaction closes (which is currently expected to be before October 21, 2020): https://halotoronto.ca/
This is an external website maintained by the Purchaser. Please note that PwC is not responsible for the content of this external website.
On September 15, 2020, the Court issued the Approval and Vesting Order, which among other things:
Further information pertaining to the existing agreements of purchase and sale for units in the Halo Project is available on the “Pre-Construction Purchasers” subpage of this website.
On August 28, 2020, the Receiver filed its motion with the Court for an order (the “Approval and Vesting Order”) to, among other things:
On the same date, the Receiver filed its Fourth Report (the “Fourth Report”) with the Court to provide the Court with the information on:
The date for the motion has not been fixed at this time.
On July 22, 2020, the Court issued the Halo Receiver Borrowings Increase Order which among other things
On July 17, 2002, the Receiver filed its Third Report (the “Third Report”) with the Court, to provide the Court with the information on:
On the same date, the Receiver filed a motion for an order (the “Halo Receiver Borrowings Increase Order”) to, among other things
The motion will be heard on July 22, 2020.
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.