Court File No. CV-20-00650239-00CL ONTARIO SUPERIOR COURT OF JUSTICE COMMERCIAL LIST IN THE MATTER OF SECTION 243 (1) OF THE BANKRUPTCY AND INSOLVENCY ACT, R.S.C.1985, c.B-3 AS AMENDED; IN THE MATTER OF SECTION 101 OF THE COURTS OF JUSTICE ACT, R.S.O. 1990 c.C-43, AS AMENDED B E T W E E N: THE BANK OF NOVA SCOTIA Applicant -and- 1854313 ONTARIO LIMITED Respondent APPLICATION RECORD (Returnable October 29, 2020) October 27, 2020 LIPMAN, ZENER & WAXMAN PC Barristers and Solicitors 100 Sheppard Street East, Suite 850 Toronto, Ontario M2N 6N5 Ian Klaiman Law Society No. #58955G Tel: (416) 789-0652 Fax: (416) 789-9015 Emails: [email protected] Jason D. Spetter Law Society No. #46105S Tel: (416) 789-0655 Fax: (416) 789-9015; Email: [email protected] Lawyers for the Applicant TO: THIS HONOURABLE COURT AND TO: SERVICE LIST (ATTACHED) Court File No. CV-20-00650239-00CL ONTARIO SUPERIOR COURT OF JUSTICE COMMERCIAL LIST IN THE MATTER OF SECTION 243 (1) OF THE BANKRUPTCY AND INSOLVENCY ACT, R.S.C.1985, c.B-3 AS AMENDED; IN THE MATTER OF SECTION 101 OF THE COURTS OF JUSTICE ACT, R.S.O. 1990 c.C-43, AS AMENDED B E T W E E N: THE BANK OF NOVA SCOTIA Applicant -and- 1854313 ONTARIO LIMITED Respondent SERVICE LIST (as of October 27, 2020) TO: THIS HONOURABLE COURT AND TO: LIPMAN, ZENER & WAXMAN PC Lawyers for the Applicant Barristers and Solicitors 100 Sheppard Avenue East, Suite 850 Toronto, Ontario M2N 6N5 Ian Klaiman Law Society No. 58955G Jason Spetter Law Society No. 46105S Direct: 416-789-0658 / 416-789-0655 Fax: 416-789-9015 Email: [email protected] [email protected] 1 AND TO: BDO Canada Limited Proposed Receiver 20 Wellington Street East, Suite 500 Toronto, Ontario M5E 1C5 Clark Lonergan Tel: 416-844-0843 Fax: 416-488-3765 Email: [email protected] AND TO: HARRISON PENSA LLP Lawyers for the Proposed Receiver 450 Talbot Street London, Ontario N6A 5J6 Tim Hogan Tel: 519-661-6743 Fax: 519-667-3362 Email: [email protected] AND TO: 1854313 ONTARIO LIMITED Respondent 1051 Upper James Street, Suite 200 Hamilton, Ontario L9C 3A6 Attention: Syed Bukhari Email: [email protected] AND TO: SYED BUKHARI 1051 Upper James Street, Suite 200 Hamilton, Ontario L9C 3A6 Email: [email protected] AND TO: 2642614 ONTARIO INC. 3751 Hwy 6 Mount Hope, Ontario, L0R 1W0 Attention: Syed Bukhari Email: [email protected] AND TO: TOUCHSTONE GROUP LTD. 48 Finch Avenue West Toronto, Ontario M2N 2H2 Attention: Matthew Moyal Email: [email protected] 2 AND TO: ENERCARE HOME AND COMMERCIAL SERVICES INC. ENERCARE HOME AND COMMERCIAL SERVICES LIMITED PARTNERSHIP 7400 Birchmount Road Markham, Ontario L3R 5V4 J. Tracy Li Tel: 416-649-1877 Email: [email protected] AND TO: KONE INC. c/o Koskie Minsky LLP 20 Queen Street West, Suite 900 Toronto, Ontario M5H 3R3 Jeffrey A. Armel Tel: 416-595-2069 Email: [email protected] AND TO: MATTHEW MOYAL 48 Finch Avenue West Toronto, Ontario M2N 2H2 Email: [email protected] AND TO: Ministry of Finance Legal Services Branch 777 Bay Street, 11th Floor Toronto, Ontario M5G2C8 Kevin O’Hara Tel: 905-433-6934 Fax: 905-436-4510 E-mail: [email protected] 3 AND TO: Department of Justice Ontario Regional Office The Exchange Tower 130 King Street West, Suite 3400 Toronto, Ontario M5X 1K6 Diane Winters Tel: 416-973-3172 Fax: 416-973-0810 E-mail: [email protected] 4 Court File No. CV-20-00650239-00CL ONTARIO SUPERIOR COURT OF JUSTICE COMMERCIAL LIST IN THE MATTER OF SECTION 243 (1) OF THE BANKRUPTCY AND INSOLVENCY ACT, R.S.C.1985, c.B-3 AS AMENDED; IN THE MATTER OF SECTION 101 OF THE COURTS OF JUSTICE ACT, R.S.O. 1990 c.C-43, AS AMENDED B E T W E E N: THE BANK OF NOVA SCOTIA Applicant -and- 1854313 ONTARIO LIMITED Respondent INDEX TAB DOCUMENT PAGE NO. 1. Not ice of Application dated October 27, 2020 ................................................................1 ........ 2. Affidavit of sworn October 26, 2020 ..............................................................13 A. Exhibit “A” – Corporation Profile Report retrieved September 29, 2020 ..........................24 B. Exhibit “B” – Service Ontario Parcel Register dated October 2, 2020 ..............................29 C. Exhibit “C” – Commitment Letter dated November 4, 2019 .............................................46 D. Exhibit “D” – Agreement re: Operating Credit Line ..........................................................57 E. Exhibit “E” – Scotiabank Visa Business Card Agreement dated November 10, 2019 ...............................................................................................................................60 F. Exhibit “F” – General Security Agreement, dated November 10, 2019 .............................67 TAB DOCUMENT PAGE NO. G. Exhibit “G” – Postponement Agreement dated November 10, 2019 ................................74 . H. Exhibit “H” – Unlimited Guarantee dated November 10, 2019 ................................75......... I. Exhibit “I” – Unlimited Guarantee dated November 10, 2019 ................................78........... J. Exhibit “J” – Collateral Mortgage, Instrument No.: CK166291, November 18, 2019 ...............................................................................................................................79 K. Exhibit “K” – Notice of Assignment of Rents, Instrument No.: CK166292, November 18, 2019 .............................................................................................................87 L. Exhibit “L” – Personal Property Security Registration System Enquiry dated September 28, 2020 ................................................................................................89 ... M. Exhibit “M” – Chatham Daily News Article entitled “Public asked for input on improving Downtown Chatham Centre” dated September 9, 2020 .....................94 N. Exhibit “N” – Notice of Sale dated July 23, 2020 ..............................................................100 O. Exhibit “O” – Email from Lynn O’Brien to Allan Lipman dated October 20, 2020 ...............................................................................................................................103 P. Exhibit “P” – Letter to Matthew Moyal dated October 20, 2020 ................................104 ....... Q. Exhibit “Q” – Email correspondence between Allan Lipman and Matthew Moyal dated October 21, 2020 ............................................................................................105 R. Exhibit “R” – Email correspondence between Allan Lipman and Lynn O’Brien dated October 23, 2020 .........................................................................................11 S. Exhibit “S” – MLS Listing Search Conducted on October 26, 2020 ................................113 . T. Exhibit “T” – Chatham Mall Site Inspection Photos ..........................................................115 U. Exhibit “U” – Chatham Mall Store List ..............................................................................153 V. Exhibit “V” – Demand Letter and Notice of Intention to Enforce Security .......................15 W. Exhibit “W” – Statement of Indebtedness dated October 26, 2020 ................................159 .... X. Exhibit “X” – Consent of BDO Canada Limited dated October 26, 2020 .........................161 TAB DOCUMENT PAGE NO. 3. Draft Order – Appointing Receiver (blackline) ................................................................162 ....... TAB 1 1 Court File No. CV-20-00650239-00CL ONTARIO SUPERIOR COURT OF JUSTICE COMMERCIAL LIST IN THE MATTER OF SECTION 243 (1) OF THE BANKRUPTCY AND INSOLVENCY ACT, R.S.C.1985, c.B-3 AS AMENDED; IN THE MATTER OF SECTION 101 OF THE COURTS OF JUSTICE ACT, R.S.O. 1990 c.C-43, AS AMENDED B E T W E E N: THE BANK OF NOVA SCOTIA Applicant -and- 1854313 ONTARIO LIMITED Respondent NOTICE OF APPLICATION TO THE RESPONDENT: A LEGAL PROCEEDING HAS BEEN COMMENCED by the Applicant. The claim made by the Applicant appears on the following page. THIS APPLICATION will come on for a hearing before a Judge presiding over the Commercial List on Thursday, October 29, 2020 at 12:00pm or as soon after that time as the Application can be heard by video conference due to the COVID-19 crisis. IF YOU WISH TO OPPOSE THIS APPLICATION, to receive notice of any step in the application or to be served with any documents in the application you or an Ontario lawyer acting for you must forthwith prepare a Notice of Appearance in Form 38A prescribed by the Rules of Civil Procedure, serve it on the Ap_[XRP]clb [PfhTa ^a( fWTaT cWT 9pplicant does not have a lawyer, serve it on the Applicant, and file it, with proof of service, in this court office, and you or your lawyer must appear at the hearing. IF YOU WISH TO PRESENT AFFIDAVIT OR OTHER DOCUMENTARY EVIDENCE TO THE COURT OR TO EXAMINE OR CROSS-EXAMINE WITNESSES ON THE APPLICATION, you or your lawyer must, in addition to serving your Notice of Appearance, serve a copy of the evidence on the Applicanclb [PfhTa ^a( fWTaT cWT 9pplicant does not have a lawyer, serve it on the Applicant, and file it, with proof of service, in the court office 2 where the application is to be heard as soon as possible, but not later than 2 p.m. on the day before the hearing. IF YOU FAIL TO APPEAR AT THE HEARING, JUDGMENT MAY BE GIVEN IN YOUR ABSENCE AND WITHOUT FURTHER NOTICE TO YOU. IF YOU WISH TO OPPOSE THIS APPLICATION BUT ARE UNABLE TO PAY LEGAL FEES LEGAL AID MAY BE AVAILABLE TO YOU BY CONTACTING A LOCAL LEGAL AID OFFICE. Digitally signed by Maggie Sawka DN: cn=Maggie Sawka, o=Ministry of the Attorney General,