Seven companies related to Flato Developments Inc. — the Markham builder behind Owen Sound’s approved 716-unit Greystone Village subdivision — have been placed in receivership over roughly $29 million in defaulted loans. The Owen Sound lands are not named in the court order.
An Ontario court granted the receivership order June 23 on application by Dorr Capital Corporation and Olympia Trust Company, appointing TDB Restructuring as receiver, according to trade publication Insolvency Insider.
The order followed defaults under five cross-defaulted real estate loans, with total indebtedness reaching about $29.07 million by June 5.
The order covers eight properties in Dundalk, Melancthon and Beeton. It does not name any Owen Sound…