Key Points:

• Motion by Trustee: FAAN Mortgage Administrators Inc., the court-appointed Trustee of Building & Development Mortgages Canada Inc. (BDMC), sought court approval for:

  • The 30th and 31st Reports of the Trustee.
  • Fees and disbursements from October 16, 2022, to November 30, 2024.
  • Sealing of certain confidential exhibits.
  • Distribution of Fortress Holdback and Future Fortress Amounts to investors rather than to Fortress Real Developments Inc. or its principals.

• Investor Losses & Recovery:

  • BDMC administered syndicated mortgage loans totaling $560 million from 11,000+ investors across 45 real estate projects.
  • The Trustee has recovered approximately $179 million, including $3.4 million since its 29th Report.
  • Investors face significant shortfalls in recoveries.

• Distribution of Fortress Funds:

  • Given prior payments to Fortress and its principals and the investors' heavy losses, the Trustee recommended distributing remaining Fortress-related funds directly to investors.
  • The court agreed, ruling that this was equitable and appropriate.

• Approval of Trustee's Work & Fees:

  • The court found the Trustee’s actions reasonable and consistent with its mandate.
  • Trustee and counsel fees were deemed market-appropriate and necessary.

• Sealing Order Granted:

  • Certain confidential exhibits were sealed under Sierra Club and Sherman Estate principles to protect sensitive financial and litigation information.

• Final Order:

  • The court approved all requests, signed the omnibus order, and ruled it effective immediately.