On June 5, 2018, B. Riley Farber Inc. (“B. Riley Farber”) was appointed as receiver (the “Receiver”) pursuant to section 243(1) of the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, as amended, and section 101 of the Courts of Justice Act, R.S.O. 1990, c. C-43, as amended, over the property, assets and undertakings (the “Property”) of Waxman Realty Company Inc. (“WRCI”) and 1340923 Ontario Inc. (“134” and, together with WRCI, the “Debtors”) by virtue of the Order (the “Appointment Order”) issued by the Ontario Superior Court of Justice (Commercial List) (the “Court”).
Public documents filed with, or issued by, the Court relating to this proceeding may be viewed and/or downloaded from the index below.
On June 5, 2018, the Court also issued an Order (the “Sale Process Approval Order”) approving, among other things, the terms and conditions of a sale process (the “Sale Process”) to be undertaken by the Receiver in respect of the Property of the Debtors. The Property subject to the Sale Process (the “Real Property Interests”) consists of, in substance:
- WRCI’s fifty percent (50%) registered interest in the real property known as 4350 Harvester Road, Burlington, Ontario (the “Burlington Property”); and
- 134’s fifty percent (50%) registered interest in the real property known as 143 Adams Boulevard, Brantford, Ontario (the “Brantford Property”).
The Sale Process Approval Order also approved a stalking horse bid of $6,650,000 for the Real Property Interests (the “Stalking Horse Bid”) from American Iron & Metal Company Inc. (“AIM”).
In accordance with the Court-approved Sale Process, interested parties were invited to submit offers for the Real Property Interests to the Receiver, on terms no less favourable that the Stalking Horse Bid, substantially in the form of the Stalking Horse Bid, and for an amount that is no less than $175,000 more than the Stalking Horse Bid.
The Sale process concluded at 4:00 p.m. EDT on Tuesday, July 10, 2018 (the “Bid Deadline”), with no competing bids received by the Receiver. Accordingly, the Receiver sought, and received, an order of Court (the “Approval and Vesting Order“) approving, among other things, the approval of the sale of the Property to, and vesting of the Property in, AIM. The transaction, as approved, is scheduled to close on August 17, 2018.
The Court also issued a separate order on August 16, 2018 (the “Ancillary Order”) providing for the approval of, amongst other things, the reports to Court of the Receiver and the proposed Receiver.
The Receiver will be making a motion to Court on May 28, 2019 seeking the approval of, among other things, the final distribution of funds by the Receiver and the subsequent discharge of the Receiver. It is noted that the Debtors have filed a separate motions with the Court, also returnable on May 28, 2019, which will provide Court direction as to how the funds are to be distributed by the Receiver after satisfying the fees and disbursements of the Receiver and its counsel and the Receiver’s borrowings.
The Receiver attended Court on May 28, 2019 and the Court granted the Receiver’s motion to among other matters be discharged. The Court ordered that the Receiver, after payment of its fees and disbursements, be authorized to repay the Receiver’s borrowings, to pay the Canada Revenue Agency, as directed by another Court Order, and that the balance of the funds available, after these payments have been made, be paid in accordance with the Court’s decision in a separate motion filed by the Debtors, Aaron Waxman and Jeremy Waxman heard by the court on May 28, 2019. That Court Order is also attached below captioned ”Order of Justice Hainey (Various Interim Relief) – May 28, 2019”
Copies of all Court materials are available for viewing/download via the table of links below.
The Receiver filed a Discharge Certificate on September 24, 2019 and all the surplus funds have been paid over to Scarfone Hawkins LLP in Trust, pursuant to the May 28, 2019 Court Order.
Creditor or Employee Enquiries
For creditor or employee enquiries, please contact:
E: [email protected]
The case updates and Court filed documents on this website are for information purposes only and you should consult your financial or legal adviser if you have any questions or concerns about your rights or obligations. Additional updates on the status of these proceedings may become available in the future.
- Report of the Proposed Receiver (w/o Appendices) dated April 12, 2018
- First Report of the Receiver (w/o Appendices) dated August 3, 2018
- Application Record (returnable April 20, 2018)
- Factum of American Iron & Metal Company Inc. – April 20, 2018
- Brief of Authorities of American Iron & Metal Company Inc. – April 20, 2018
- Responding Application Record of NASG Canada Inc. – April 19, 2018
- Factum of NASG Canada Inc. – April 19, 2018
- Brief of Authorities of NASG Canada Inc. – April 19, 2018
- Motion Record of the Receiver – Returnable August 16, 2018
- Motion Record of the Receiver – Returnable May 28, 2019
Court Orders and Endorsements
- Endorsement of Justice Patillo – May 25, 2018
- Appointment Order – June 5, 2018
- Sale Process Approval Order – June 5, 2018
- Approval and Vesting Order – August 16, 2018
- Ancillary Order – August 16, 2018
- Endorsement of Justice Dunphy – August 16, 2018
- Discharge Order of Justice Hainey – May 28, 2019
- Endorsement of Justice Hainey – May 28, 2019
- Order of Justice Hainey (Various Interim Relief) – May 28, 2019