Law360 Canada ( June 10, 2026, 9:39 AM EDT) -- Appeal by Mizrahi and related corporate entities (appellants) from a judgment in favour of V2 Investment Holdings Inc. (V2) on an outstanding commercial loan. V2 advanced a $12.9-million bridge loan to finance a partially completed condominium project in Ottawa, secured by guarantees and a demand debenture granting a mortgage over the property, which was initially unregistered due to a prior first mortgage held by Trez Capital Limited Partnership (Trez). The loan matured, was amended once to extend maturity to Dec. 31, 2023, and remained in default due to missed interest payments, failure to repay principal, and other covenant breaches. After further negotiations in early 2024, Mizrahi asserted that an oral agreement was reached at the meeting to again extend the maturity date and to enter into an intercreditor agreement with Trez, while V2 denied any binding agreement. In April 2024, V2 registered its mortgage following default and commenced an application for judgment on the loan against Mizrahi and the guarantors. The application judge granted judgment on the liquidated debt, finding no binding agreement to vary the loan and no bad faith by V2. On appeal, the appellants argued that the application judge erred by failing to convert the application to an action, by resolving disputed facts and credibility issues on a paper record, and by foreclosing potential defences of equitable set‑off and counterclaim....