Arres Capital Inc.
On July 26, 2017, the Court of Queen’s Bench of Alberta (the “Court”) affirmed an Order (the “Receivership Order”) whereby Alvarez & Marsal Canada Inc. (“A&M”) was appointed receiver (the “Receiver”) of Arres Capital Inc. (“Arres”) pursuant to Part 9 of Civil Enforcement Act, R.S.A. 2000, c. C-15 (“the CEA”). The effective date of the Receivership Order (date of pronouncement) is February 13, 2015. Pursuant to the Receivership Order, the Receiver is appointed, without security, of all of Arres’ current and future Exigible Property, as defined in the Receivership Order, wherever situate, including all proceeds thereof.
On October 23, 2017, the Court granted an order (the “Amended and Restated Receivership Order”) providing the Receiver with the standard rights and powers contained in the model form of receivership order (the “Model Order”) that has been drafted by the Alberta Template Orders Committee with assistance from members of the commercial list judiciary.
Pursuant to the Amended and Restated Receivership Order, A&M is now appointed receiver, without security, of all of the Debtor's current and future assets, undertakings and properties of every nature and kind whatsoever, and wherever situate, including any assets, undertakings and properties acquired by the Arres after the date of the Amended and Restated Receivership Order and all proceeds thereof. For greater certainty, and without limitation, the Exigible Property includes Arres’ interest in (a) debts due to the Arres either now or in the future and (b) causes of action (the “Exigible Property”).
On July 26, 2017, the Court also granted an Order (the “Bankruptcy Order”) to adjudge Arres into Bankruptcy. A&M was appointed as trustee of the estate of the bankrupt (Arres), without security.
Arres is a mortgage brokerage firm and acts as a manager and trustee for investors in various mortgages issued by Arres. The Applicant in the Receivership matter (Access Mortgage Corporation (2004) Limited) is an investor in numerous mortgages advanced by Arres to third party borrowers.
On August 4, 2017, counsel to Arres filed a civil notice of appeal to the Court of Appeal of Alberta to have the Bankruptcy Order set aside and otherwise dismissed. Accordingly, the Bankruptcy Order is stayed and A&M is taking no steps in the bankruptcy.
On October 3, 2017, Access (the Plaintiff) filed application materials with respect to seeking an order directing the Respondent, Arres, to pay into court within 30 days of the date of the order the sum of $14,750 as security for Access’ costs of Arres’ appeal in the within bankruptcy proceeding. The Order was granted by the Court for Arres to pay into court the required funds as security for Access’ costs and these funds were to be paid by December 15, 2017.
On December 18, 2017, a report of civil appeal was prepared and filed by the Court of Appeal of Alberta advising that the civil notice of appeal to the Bankruptcy Order was dismissed with costs as the security for costs ordered by Justice Rowbotham on November 14, 2017, was not provided as ordered.