BDMC
On April 20, 2018, pursuant to an order of the Ontario Superior Court of Justice (Commercial List) (“Appointment Order”), FAAN Mortgage Administrators Inc. (“FAAN Mortgage”) was appointed as trustee (“Trustee”) over all of the assets, undertakings and properties of Building & Development Mortgages Canada Inc. (”BDMC”) under section 37 of the Mortgage Brokerages, Lenders and Administrators Act, 2006, as amended, and section 101 of the Courts of Justice Act, as amended.
For clarity, the Trustee is not appointed over any of the projects with syndicated mortgage loans not administered by BDMC.
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December 14, 2022 Court Orders
On November 14, 2022, the Court approved the following:
the Eden Settlement Agreement and the distribution to the Investors in the Eden Project of 85% of the Realized property to be received by the Trustee in respect of the Eden Project (Eden Resolution and Distribution Order);
the Brookdale Settlement Agreement (Brookdale Settlement Order); and
the: (i) Twenty-Eighth Report, Twenty-Ninth Report and the activities of the Trustee described therein and (ii) The Trustee’s activities and its fees and disbursements, including the fees and disbursements of its counsel, for the period from January 1, 2022 to October 15, 2022 (November 2022 Omnibus Order).
As a result of an objection raised by an investor in the Brookdale Mezzanine Loan it was agreed that the relief being sought in respect of the Trustee's proposed distribution of the Realized Property to be received in connection with the Brookdale Settlement Agreement would be deferred and be heard by the Court on December 14, 2022.
Trustee’s Thirtieth Report
On December 5, 2022, the Trustee served materials in connection with its motion returnable December 14, 2022 in support of the Trustee’s request for an order to: (i) approve the 6th & 10th Settlement Agreement; and (ii) authorize the distribution to the Investors in the 6th & 10th Project of 85% of the Realized property to be received by the Trustee (6th & 10th Settlement Approval and Distribution Order).
November 14, 2022 Court Orders
On November 14, 2022, the Court approved the following:
the Eden Settlement Agreement and the distribution to the Investors in the Eden Project of 85% of the Realized property to be received by the Trustee in respect of the Eden Project (Eden Resolution and Distribution Order);
the Brookdale Settlement Agreement (Brookdale Settlement Order); and
the: (i) Twenty-Eighth Report, Twenty-Ninth Report and the activities of the Trustee described therein and (ii) The Trustee’s activities and its fees and disbursements, including the fees and disbursements of its counsel, for the period from January 1, 2022 to October 15, 2022 (November 2022 Omnibus Order).
As a result of an objection raised by an investor in the Brookdale Mezzanine Loan it was agreed that the relief being sought in respect of the Trustee's proposed distribution of the Realized Property to be received in connection with the Brookdale Settlement Agreement would be deferred and be heard by the Court on December 14, 2022.
Trustee’s Twenty-Ninth Report
On November 4, 2022, the Trustee served materials in connection with its motion returnable November 14, 2022, which provides, among other things, a comprehensive update on developments in these proceedings since the Twenty-Seventh Report was filed in support of the Trustee’s request for orders authorizing and approving, as applicable: the Brookdale Settlement Agreement and the distribution of 85% of the Realized Property to be received by the Trustee in respect of the Brookdale Project to all syndicated mortgage lenders in the Brookdale Loans on a pari passu basis; the Eden Settlement Agreement and the distribution to the Investors in the Eden Project of 85% of the Realized property to be received by the Trustee in respect of the Eden Project; and the:(i) Twenty-Eighth Report, Twenty-Ninth Report and the activities of the Trustee described therein; and (ii) the Trustee’s activities and its fees and disbursements, including the fees and disbursements of its counsel, for the period from January 1, 2022 to October 15,2022. Copies of the materials filed on November 5, 2022, including the Trustee’s Twenty-Ninth Report, are available below.
Trustee’s Twenty-Eight Report
On March 21, 2022, the Trustee served materials in support of a Motion for an Order that would, among other things, require the immediate payment by Diversified to the Trustee of the Disputed Amounts, as defined in the Twenty-Eighth Report; the Trustee’s costs on a partial indemnity basis; and such other relief or other Orders incidental to or related to the relief requested in the Twenty-Eighth Report. Copies of the materials filed on March 21, 2022, including the Trustee’s Twenty-Eighth Report, are available below.
Omnibus Order
On January 31, 2022, the Court granted an order (“January 2022 Omnibus Order”) approving:
the distribution of 85% of the Realized Property received by the Trustee in respect of the South Shore Project to all syndicated mortgage lenders in the South Shore Loans on a pari passu basis;
the distribution to the Investors in the Kemp Project of the remaining realized property being held by the Trustee in respect of the Kemp Project; and
the: (i) Twenty-Seventh Report and activities of the Trustee described therein; and (ii) the Trustee’s activities and its fees and disbursements, including the fees and disbursements of its counsel, for the period from May 1, 2021 to December 31, 2021.
A copy of the January 2022 Omnibus Order and the related endorsement is provided below.
Trustee’s Twenty-Seventh Report
On January 18, 2022, the Trustee served materials in connection with its motion returnable January 31, 2022, which provides, among other things, a comprehensive update on developments in these proceedings since the Twenty-Sixth Report was filed in support of the Trustee’s request for orders authorizing and approving, as applicable:
the distribution of 85% of the Realized Property received by the Trustee in respect of the South Shore Project to all syndicated mortgage lenders in the South Shore Loans on a pari passu basis;
the distribution to the Investors in the Kemp Project of the remaining realized property being held by the Trustee in respect of the Kemp Project; and
the: (i) Twenty-Seventh Report and activities of the Trustee described therein; and (ii) the Trustee’s activities and its fees and disbursements, including the fees and disbursements of its counsel, for the period from May 1, 2021 to December 31, 2021.
Copies of the materials filed on January 18, 2022, including the Trustee’s Twenty-Seventh Report, are available below.
Omnibus Order
On June 7, 2021, the Court granted the following Orders:
June 2021 Omnibus Order;
Jasper Residual Proceeds Settlement, North Residual Proceeds Settlement, Distribution Order;
Castlemore Resolution Order.
Copies of the relevant Orders and the related endorsement is provided below.
Trustee’s Twenty-Sixth Report
On May 21, 2021, the Trustee served materials in connection with its motion returnable June 7, 2021, which provides, among other things, a comprehensive update on developments in these proceedings since the Twenty-Fourth Report. The Twenty-Sixth Report was filed in support of the Trustee’s request for orders authorizing and approving, as applicable:
the distribution of 85% of the Realized Property received by the Trustee in respect of the Whitby Project, the Nobleton South Project, and the Bowmanville Project, pro rata to the applicable lenders in such projects;
the Related Party Claim Settlement Agreements, Inter-Project Allocation and the distribution of 85% of the Realized Property received by the Trustee in respect of the North Project and the Jasper House Project, pro rata to the applicable lenders in such projects;
the Castlemore Settlement Agreement and the distribution of 85% of the Realized Property to be received by the Trustee in respect of same, pro rata to the Castlemore lenders; and
the Trustee’s activities and its fees and disbursements, including the fees and disbursements of its counsel, for the period from October 1, 2020 to April 30, 2021.
Copies of the materials filed on May 21, 2021, including the Trustee’s Twenty-Sixth Report, are available below.
Wellington Settlement Approval Order
On February 23, 2021, the Court granted an order approving the requests related to the Wellington House loan advanced by BDMC.
A copy of the Wellington Settlement Approval Order and the related endorsement is provided below.
Trustee’s Twenty-Fifth Report
On February 16, 2021, the Trustee served materials in connection with its motion returnable February 23, 2021, which provides, among other things:
A recommendation that the Court grant an order approving a settlement offer made by the Wellington House borrower in respect of the Wellington House loan advanced by BDMC.
Copies of the materials filed on February 16, 2021, including the Trustee’s Twenty-Fifth Report, are available below.
Omnibus Order
On November 27, 2020, the Court granted an order (“Omnibus Order”):
approving the Trustee’s Fourteenth Report, Fifteenth Report, Sixteenth Report, Eighteenth Report, Twenty-Second Report and the Twenty-Fourth Report, and the activities described therein; and
approving the Trustee’s fees and disbursements, including the fees and disbursements of its counsel, for the period from October 1, 2019 to September 30, 2020.
A copy of the Omnibus Order and the related endorsement is provided below.
Trustee’s Twenty-Fourth Report
On November 16, 2020, the Trustee served materials in connection with its motion returnable November 27, 2020, which provides, among other things, a comprehensive update on developments in these proceedings since the Thirteenth Report including Realized Property generated by the Trustee, sale processes conducted through enforcement proceedings and directly by project borrowers, and other material project developments. The Twenty-Fourth Report was filed in support of the Trustee’s request for an order which includes, among other things:
approving the Trustee’s Fourteenth Report, Fifteenth Report, Sixteenth Report, Eighteenth Report, Twenty-Second Report and Twenty-Fourth Report and the activities described therein; and
approving the Trustee’s fees and disbursements, including the fees and disbursements of its counsel, for the period from October 1, 2019 to September 30, 2020.
Copies of the materials filed on November 16, 2020, including the Trustee’s Twenty-Fourth Report, are available below.
Peter Richmond Distribution Order
On October 15, 2020, the Court granted an order approving the requests in respect of the Peter Richmond loans advanced by BDMC.
A copy of the Peter Richmond Distribution Order and the related endorsement is provided below.
Old Market Lane Distribution Order
On October 15, 2020, the Court granted an order approving the requests in respect of the Old Market Lane loans advanced by BDMC.
A copy of the OML Distribution Order and the related endorsement is provided below.
Tax Opinions Order
On October 15, 2020, the Court granted an order approving the requests in respect of the Tax Opinions related to loans advanced by BDMC.
A copy of the Tax Opinions Order and the related endorsement is provided below.
Port Place 2 Order
On October 15, 2020, the Court granted an order approving the requests in respect of the Port Place 2 loan advanced by BDMC.
A copy of the Port Place 2 Order and the related endorsement is provided below.
Trustee’s Twenty-Third Report
On October 8, 2020, the Trustee served materials in connection with its motion returnable October 15, 2020, in support of the Trustee’s request for an order (“Port Place 2 Order”) that:
Approves and authorizes the Trustee to enter into certain subordination and priority agreements. The effect of the subordination and postponement agreements will be to subordinate BDMC’s second priority mortgage to the third priority mortgage registered on title to the Port Place 2 project properties.
Copies of the materials filed on October 8, 2020, including the Trustee’s Twenty-Third Report, are available below.
Trustee’s Twenty-Second Report
On October 7, 2020, the Trustee served materials in connection with its motion returnable October 15, 2020, in support of the Trustee’s request for an order (“Tax Opinions Order”) that:
Authorizes the Trustee to disseminate copies of the Tax Opinions, in accordance with the procedure set out in the proposed Tax Opinions Order, for use by an Investor in an ongoing or potential action or legal proceeding relating to a Fortress related real estate project to which the Tax Opinion(s) relate(s).
Copies of the materials filed on October 7, 2020, including the Trustee’s Twenty-Second Report, are available below.
Trustee’s Twenty-First Report
On October 2, 2020, the Trustee served materials in connection with its motion returnable October 15, 2020, in support of the Trustee’s request for an order (“Peter Richmond Distribution Order”) that:
Authorizes the Trustee to distribute the Realized Property to the syndicated mortgage lenders who advanced monies pursuant to the PRLA Loan (“PRLA SML Lenders”) and syndicated mortgage lenders who advanced monies pursuant to the LH2 Loan: (i) on a pari passu basis with respect to the portion of the Realized Property allocated to the parcel of land located at 122-124 Peter Street, and (ii) solely to the PRLA SML Lenders with respect to the remaining portion of the Realized Property.
Copies of the materials filed on October 2, 2020, including the Trustee’s Twenty-First Report, are available below.