Sher Markham Inc. and Sher Holdings Inc. were put into receivership on October 14, 2026, following a request by Meridian Credit Union Limited. This action came after work stopped on a 131-unit condo project in Markham, Ontario, leaving the lender owed around $57.7 million and contractors claiming over $11.4 million in construction liens. Justice Sean Dunphy of the Ontario Superior Court of Justice denied the companies’ plea for a 30-day delay to seek CCAA protection with support from a proposed $21.15 million DIP financing facility, stating that their restructuring plan wasn’t advanced enough to warrant more time.
The case revolves around Everhome, located at 9704 Mc Cowan Road, which includes 131 residential units and one commercial unit. As of July 2026, the project was about 86% complete with 103 out of the 131 residential units pre-sold. Shakeel Walji, who is both the principal and founder of these companies, also serves as their sole director, president and secretary and personally guaranteed the debt owed to Meridian. Although much of the building structure was finished, interior work still needed to be done.
The financial issues for the companies arose after repeated loan defaults, unexpected construction costs, and problems with site management. Meridian issued default notices in April and October of 2025 as well as April of 2026 due to missed payment deadlines, budget overruns and developers not covering extra expenses. Work halted in mid-May 2026 when the construction manager pulled out after identifying serious safety concerns during an inspection. In August, Meridian called for repayment but the debt remained unpaid. The lender even covered overdue insurance premiums to safeguard its interests. By October 7th, there were 21 claims related to construction liens against the property totaling about $11.4 million while estimates showed it would take over $17.3 million to finish the project.
The developers fought against the receivership order and requested more time to finalize a CCAA filing backed by Safe Harbour Global Capital that had offered a $21.15 million financing package on October 13th. This funding was intended for completing construction along with covering certain outstanding costs without affecting Meridian’s existing secured priority. However, this financing relied on obtaining Meridian’s approval and starting CCAA proceedings first. Justice Dunphy concluded that their restructuring proposal wasn’t prepared enough to move forward and delaying further could lead to more losses for Meridian. He refused the adjournment request and granted the receivership order but allowed lien claimants to challenge the validity, amount or priority of competing claims.
Grant Thornton has been appointed as receiver as well as manager and trustee for construction liens. Counsel includes Gowling WLG representing Meridian, Loopstra Nixon for the receiver and Cassels for the debtors while Albert Gelman was suggested as monitor.
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