The Ontario Superior Court of Justice last week appointed Grant Thornton Limited as receiver and manager of the assets of a portion of Ottawa Train Yards on Industrial Avenue.
According to legal documents on the Grant Thornton Limited website, The Manufacturers Life Insurance Company (Manulife) filed an application for Grant Thornton to be appointed the receiver of all assets after the owner of a portion of Ottawa Train Yards failed to make payment on an outstanding loan.
141 Ontario is the owner of a 23.2-acre commercial site on the north side of Industrial Avenue, west of St. Laurent Boulevard. The documents describe it as “a large shopping complex, the Ottawa Train Yards, with multiple free-standing buildings and has many tenants.”
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According to the court documents, Manulife extended a $45.5-million loan to 141 Ontario in December 2018 that matured and became payable on Feb. 1, 2024.
However, 141 Ontario failed to repay the loan upon maturity and, as of March 21, 2024, $39.5 million remained outstanding. The loan continues to accrue interest at the rate of $3,651 per day, the documents showed.
“141 Ontario has not given the lenders any indication of whether or not, when, or how it intends to acknowledge and/or fulfil any of its obligations as borrower,” the legal documents stated.
“In the absence of constructive communication with the borrower, Manulife has no visibility into the property, or the management of the property, including important leases and the insurance coverage that ought to be in place. In the circumstances described below, the collateral for the loan may well be at risk.”
Manulife advised 141 Ontario in writing in August and November of last year that it would not offer a renewal of the loan upon its maturity.
The documents show Manulife is 141 Ontario’s major creditor. They also show that the Bank of Montreal holds a registered security interest against 141 Ontario.
“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 on June 19.
