The Factum of the Applicant document is a legal filing by Mizrahi Development Group (1451 Wellington) Inc. seeking relief under the Companies’ Creditors Arrangement Act (CCAA). Here’s a brief summary of its key points:

Background

Mizrahi Development Group (1451 Wellington) Inc. is a real estate development company working on a luxury condominium project called “1451 Wellington – The Residences at Island Park Drive” in Ottawa, which is about 85% complete.
The project has faced cost overruns and delays, leading to a liquidity crisis. Without additional funding, the company is at risk of insolvency.

Application Objectives

Initial Order under CCAA: Mizrahi seeks court protection from creditors to stabilize operations and prevent enforcement actions against it and its general contractor.
DIP Financing (Debtor-in-Possession Loan): The company requests access to a loan facility of up to CAD 25 million from TCC Mortgage Holdings to cover critical costs and complete the project.
Stay of Proceedings: Mizrahi seeks to halt legal actions against it and its contractor to maintain operations during restructuring.
Appointment of a Monitor: MNP Ltd. is proposed as the court-appointed monitor to oversee the restructuring process.

Financial Challenges

Outstanding Debts: The company has several loans, including first and second-lien loans, with total debts exceeding $73 million.
Secured Creditors: V2 Investment Holdings registered a charge against the project after alleging default, complicating further financing.
Unsold Units: Many condominium units remain unsold, and a receivership would likely reduce their value.

Request for CCAA Protection

The company argues that restructuring under the CCAA is the only way to secure the necessary financing and avoid receivership, which would harm the project’s value and make loan repayments difficult. It highlights the urgent need for stability to complete construction and sell the remaining units.

This document outlines the legal and financial strategy to secure funding, protect stakeholders, and allow Mizrahi Development Group to complete the project while preventing insolvency.