RBC Obtains Receivership Over Car Dealership Assets
On May 16, 2025, the Ontario Superior Court of Justice (Commercial List) (the “Court”) appointed Zeifman Partners Inc. as receiver over the assets, undertakings and properties of Dixie Chrysler Ltd. (“Dixie”), a car dealership operating in Brampton, Ont., pursuant to s. 101 of the Courts of Justice Act and s. 243 of the Bankruptcy and Insolvency Act.
Dixie owed the Royal Bank of Canada (“RBC”) approximately $10.5 million in principal and interest. RBC sought the appointment after Dixie failed to remit sale proceeds of floorplan-financed vehicles and did not provide a cash flow forecast despite repeated requests. RBC alleged Dixie was using its collateral to fund operations rather than repay its secured debt.
Dixie opposed the application, citing ongoing sale discussions and the potential for a binding offer, but the Court held the appointment was just and convenient given the company’s increasing financial distress, lack of a repayment plan and deterioration of RBC’s security position.
Aird & Berlis acted as counsel to RBC with a team consisting of Sanjeev Mitra and Shaun Parsons (Financial Services).
