via theglobeandmail:
Richmond Hill, Ont.-based real estate developer Sunrise Homes has defaulted on a court-ordered settlement to repay the millions of dollars it owes to lenders caught up in the collapse of Canada’s one-time largest syndicated mortgage company Fortress Real Developments Inc.
On May 8, 2023, Justice Peter J. Osborne endorsed a settlement agreement whereby a collection of Sunrise-related parties and companies – including Sunrise CEO Sajjan Hussain, COO Muzammil Kodwavi and their spouses – would repay to the court-ordered receiver, KSV Advisory, $10.5-million that it owed lenders.
The payment schedule in the order mandated Sunrise pay not less than $2-million every 60 days until the debt was discharged. The penalty for defaulting was that the court could enforce an earlier order requiring repayment of a larger sum of $14,510,545.24.
The Globe and Mail has learned Sunrise has since defaulted on that court order.
“Pursuant to this order we did receive a partial payment against the first payment, but since then they’ve been in default of the agreement,” said Naveed Manzoor, managing director at FAAN Advisors Group Inc. “We at FAAN are working very closely with the receiver to determine our next steps. … We are actively working on a strategy to ensure compliance with this order.”