Southern Ontario company that bought the mall did not meet court-imposed deadline to pay back loan — despite a promise to make good with 'family money' from China
The future of Sault Ste. Marie’s largest shopping centre is in limbo after a judge ordered Station Mall into receivership yesterday, the culmination of a months-long court battle over an unpaid mortgage totalling more than $18 million.
But on Wednesday morning — nearly a week after that deadline came and went — Ontario Court Justice Peter Osborne agreed to appoint a receiver, whose priority will be to ensure the mortgage provider recoups its losses. What is clear from the judge's order is that the receiver now has full control of Station Mall, effective yesterday morning. It can change security codes on the building, hire its own security, collect rent from tenants and take steps to sell the property "without interference from any other person."
According to the terms of that mortgage, the full $18 million loan was to be repaid 24 months after the sale, with various interest payments to be made in the interim. “The Lender has lost confidence in Debtor’s ability to manage the Property and does not believe that the Debtor will be able to satisfy its obligations to the lender,” reads a factum filed by Algoma Central’s lawyers. “The lenders’ security is at risk of deteriorating. There is a need to stabilize and preserve the debtors’ business.”
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