BDC Obtains Receivership Order Over Group of Companies and Real Property

On October 9, 2026, Business Development Bank of Canada ("BDC") obtained an order from the Ontario Superior Court of Justice appointing MNP Ltd. as receiver, without security, over the assets, undertakings and properties of 2224346 Ontario Inc. and 2716780 Ontario Inc., including the real property owned by Galaxy North Limited and municipally known as 6351 Goreway Drive in Mississauga, Ontario.

BDC had provided $8.5 million in credit to Galaxy North in February 2023 and was its only secured creditor. With $8.1 million outstanding, BDC sought the appointment of a receiver following violations of the credit agreement relating to a lack of reporting, unpaid property taxes and the revocation of one of the entity’s licences to operate a career college in respect of its truck training program. Galaxy North opposed the receivership based on a pending sale of the property, but the court agreed with BDC that the purported agreement of purchase and sale in respect of the property remained highly conditional and that, given the circumstances, the receivership order should be granted.

Aird & Berlis acted as counsel to BDC with a team including Steven Graff and Cristian Delfino (Financial Services).