October 11, 2024
Update on “The One” Sale and Investment Solicitation Process (“SISP”). Capitalized terms used below have the meaning given to them in the SISP.

• Pursuant to the SISP Approval Order of the Court granted on June 6, 2024, the Receiver and the Broker have conducted the SISP in accordance with its terms including the SISP milestones established therein.
• The Receiver and the Broker received a number of Qualified LOIs for Development Proposals (for the construction, development and realization of value from the Project). The Receiver and the Broker did not receive any Qualified LOIs in respect of any Transaction Proposals (for an acquisition of, or investment in, the Project at this time).
• Certain Qualified Bidders were advanced into Phase 2 of the SISP. During Phase 2, the Receiver, in consultation with the Broker, worked with the Phase 2 participants to further develop and improve the terms of their respective Development Proposals.
• At this time, the Receiver is continuing to work with the lead Qualified Bidder, in consultation with the Broker and the Senior Secured Lenders, to finalize the terms of a Development Proposal.
• Pursuant to the initial SISP milestones, the Receiver was to seek Court approval of the Successful Bid not later than the week of October 14, 2024, subject to Court availability (the “Court Approval Milestone”).
• In accordance with the SISP, following consultation with the Broker and with the consent of the Senior Secured Lenders, the Receiver is extending the Court Approval Milestone to allow for further time to finalize the terms of the lead Qualified Bidder’s Development Proposal and related definitive transaction documentation, and will provide a further update at the appropriate time.

June 6, 2024

On June 6, 2024, the Court granted the following orders: 

• (i) the SISP Approval Order approving, among other things, the sale and investment solicitation process (the “SISP”) for the Project;
• (ii) the Reconfiguration and LC Arrangement Order approving, among other things, the Reconfiguration Plan for the residential component of the Project, and an arrangement in respect of the issuance of letters of credit; and
• (iii) the Holdback Release Order authorizing the Receiver to pay certain holdback amounts to various subcontractors as specified in a schedule (the “Holdback Schedule”), subject to satisfaction or waiver of certain conditions (the “Holdback Release Conditions”).

March 13, 2024

The Receiver issued a notice of disclaimer to Mizrahi Inc. in its capacity as the general contractor and developer of The One Project that became effective on March 13, 2024. Also effective on the same day, the Receiver engaged SKYGRiD Construction Inc. to act as the new construction manager in respect of The One Project, and to continue the development and construction of The One Project in the ordinary course.  

Knightsbridge Development Corporation remains the Receiver’s project manager. 

March 7, 2024

On March 7, the Court granted the following orders:

• (i) the Construction Continuance and Ancillary Relief Order; and
• (ii) the Lien Regularization Order. 

October 18, 2023

Pursuant to the Order (Appointing Receiver) of the Ontario Superior Court of Justice (Commercial List) dated October 18, 2023, Alvarez & Marsal Canada Inc. was appointed as receiver and manager (in such capacity, the “Receiver”), without security, of all of the assets, undertakings and properties of Mizrahi Development Group (The One) Inc., Mizrahi Commercial (The One) LP, and Mizrahi Commercial (The One) GP Inc. (collectively, the “Debtors”) acquired for, or used in relation to, a business carried on by the Debtors, including in connection with the development of the 85-storey condominium, hotel and retail tower located at the southwest corner of Yonge Street and Bloor Street West in Toronto (the “The One Project”).