Ottawa Train Yards: Mall placed in receivership due to owner’s unpaid $39 million loan

Ottawa Train Yards: Mall placed in receivership due to owner’s unpaid  million loan
Ottawa Train Yards: Mall placed in receivership due to owner’s unpaid  million loan

Part of one of Ottawa’s largest shopping malls is in receivership due to an outstanding $39 million loan from the property’s owner. But business is business as usual for the stores at the Ottawa Train Yards.

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

Court documents on Grant Thornton Limited’s website show that Manulife (The Manufacturers Life Insurance Company) applied to appoint Grant Thornton Limited as receiver of all assets after the owner failed to pay an outstanding loan. Granton Thornton was named recipient of 100, 140 and 150 Trainyards Drive, 515 and 525 Industrial Avenue and 500 and 550 Terminal Avenue.

141 Ontario owns part of the Ottawa Train Yards shopping district, which has more than 150 stores and services. Over the years, several storefronts have been empty at Ottawa Train Yards, but the stores remain open this week.

Manulife made a $45.5 million loan to 141Ontario in December 2018. According to court documents, the loan was due and payable on February 1, 2024, but 141Ontario failed to repay the loan when it was due. As of March 21, 2024, $39.4 million was still outstanding on the loan.

“141 Ontario has largely failed to respond to Manulife’s repeated communications regarding its obligation to repay the loan, both prior to and after the due date,” the documents state. “141 Ontario has not engaged in any constructive communications with Manulife regarding its obligation to repay the loan.”

Manulife notified 141 Ontario in writing in August and November of last year that it would not renew the loan upon expiry.

The documents show that Manulife is Ontario’s largest creditor.

“Manulife has lost confidence in Ontario’s willingness and ability to effectively manage, preserve and protect the property that constitutes Manulife’s primary collateral for its very substantial loan,” the court filing said.

Grant Thornton was granted the receivership order on June 19.

According to Grant Thornton, the “securing and taking over of the real estate” of 141 Ontario began when the Receivership Order was issued.

“The curator has not been given access to the books and documents of the companies,” the letter states.

“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 collection 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 Supreme Court’s ruling to appoint a receiver states that Grant Thornton has the power and authority to manage, operate and carry on the business of the debtor.