Owner of Ottawa Train Yards exits receivership after settling outstanding loan

Ottawa Train Yards is no longer in receivership proceedings, just weeks after it was placed in receivership over an outstanding $39 million loan by the owner of the property.

Controlex Corporation, the owner of the shopping centre, announced it has “amicably resolved and exited receivership proceedings” as of Friday.

“Controlex is well capitalized and was able to promptly exit a recent brief period of financial receivership caused by an inadvertent missed payment using available cash on hand,” the company said in a statement.

“The company remains fully committed to supporting a strong future for the Train Yards and investing in continuous improvement.”

Last month, the Ontario Superior Court of Justice appointed Grant Thornton Limited as receiver and manager of the assets of Ottawa Train Yards over an outstanding loan. Court documents on the Grant Thornton Limited website show Manulife filed an application for Grant Thornton Limited to be appointed the receiver of all assets after the owner failed to make payment on an outstanding loan.

Manulife extended a $45.5 million loan to 141 Ontario in December 2018. According to the court documents, the loan matured and was due on Feb. 1, 2024, but 141 Ontario failed to repay the loan upon maturity. As of March 21, 2024, $39.4 million remained outstanding under the loan.

Granton Thornton was named receiver of 100, 140 and 150 Trainyards Drive, 515 and 525 Industrial Avenue and 500 and 550 Terminal Avenue. 

141 Ontario is the owner of a portion of the Ottawa Train Yards shopping district, which has over 150 shops and services.  Over the years, there have been several empty storefronts at Ottawa Train Yards, but stores remain open for business this week.

A motion from Grant Thornton for the Ontario Superior Court of Justice says the owner of the Ottawa Train Yards arranged for the payment to settle the outstanding loan.

“The Receiver is generally satisfied that the Debtor’s creditors are being paid in the normal course and that there is no longer a need for these receivership proceedings to continue,” Grant Thornton says in the report.

Controlex Corporation says business will continue as usual at Ottawa Train Yards.