Court approved the August 31, 2026 agreement with the Lower Kootenay Band for lands and buildings in the Nelson Land Title District, vesting on delivery of the Receiver's Certificate.
Source: Order Approving Sale (37th)
H&R Orchards Ltd. has been in receivership since April 14, 2026, alongside Desert Valley Vineyard Ltd., Creston Valley Cherry Growers Ltd., Lakeside Cellars Ltd. and Harbans Singh Dhaliwal and Harkesh Kaur Dhaliwal, who guaranteed the group's borrowings. Farm Credit Canada, the senior secured creditor, is owed approximately $27,229,824 as at the receivership date, secured by mortgages over the H&R, Desert Valley and Dhaliwal lands and by security agreements over personal property. FCC had demanded $26,009,114 on May 16, 2025. The Receiver has borrowed $250,000 from FCC under a court-ordered priority charge bearing interest at 5 percent compounded semi-annually. Cherrycrest Inc. registered a certificate of pending litigation against part of the H&R Lands on August 29, 2023.
Court approved the August 31, 2026 agreement with the Lower Kootenay Band for lands and buildings in the Nelson Land Title District, vesting on delivery of the Receiver's Certificate.
Source: Order Approving Sale (37th)
Interim order granted with the sale approvals, on the Receiver's proposal to pay the majority of net sale proceeds to FCC in partial repayment of the indebtedness.
Source: Order Approving Sale (Canyon)
Court approved the August 26, 2026 sale to Jay Edward, Vanessa Lynn, Edward Frederick and Carol Ann Gudjonson of District Lot 14619, Kootenay District, with vacant possession at noon on closing.
Court approved the August 28, 2026 sale to 1013830 B.C. Ltd. of seven parcels in Canyon, B.C., and authorized the Receiver to complete it.
Source: Order Approving Sale (Winery)
Second Report recorded multiple purchase and sale agreements awaiting approval, continued irrigation and crop maintenance until closing, and proposed an interim distribution of net sale proceeds to FCC.
Source: Second Report of the Receiver
Court approved the sales process to be conducted by Ernst & Young Inc. over the Desert Valley, Dhaliwal and H&R lands; no offer had then been accepted.
Source: Sales Process Order
Receiver appointed over the Dhaliwal group of orchard and vineyard companies and the two individual guarantors, fixing Farm Credit Canada's secured claim at approximately $27,229,824.
Source: Receivership Order
Outcome brief
H&R Orchards: four sales approved, and $1.2 million held back
On October 19, Justice Gropper approved the receiver's sales of the Lakeside Cellars winery at Osoyoos and three H&R properties near Creston, $18,156,000 together at the prices in the receiver's report, and directed an interim distribution to Farm Credit Canada after two reserves, one of $1.2 million pending FCC's and CherryCrest's claims against H&R.
Debtor
H&R Orchards
Receiver
EY
Bench
| Judge | Court | On this docket | Cases on record |
|---|---|---|---|
| Justice Gropper | Supreme Court of British Columbia | 6 orders, Apr 2026 – Oct 2026 | 5 cases on record |
Counsel of record
| Party | Counsel | First seen | Source |
|---|---|---|---|
| ReceiverEY | Lawson Lundell LLP | 6 Aug 2026 | Service list · 6 Aug 2026 |
| ApplicantFarm Credit Canada | Baker Newby LLP | 6 Aug 2026 | Service list · 6 Aug 2026 |
| Creditor] Attention: Email | Baker Newby LLP | 14 Apr 2026 | Order · 14 Apr 2026 |
| CreditorGate 22 Winery Ltd | DLA Piper (Canada) LLP | 6 Aug 2026 | Service list · 6 Aug 2026 |
| Priority class | Creditor | Amount | Source |
|---|---|---|---|
| Secured | Farm Credit Canada (FCC) · in 40 casesas of Receivership Date (April 14, 2026) — H&R Mortgage (H&R Lands), Desert Valley Mortgage (Desert Valley Lands), Dhaliwal Mortgage (Dhaliwal Lands), and other security agreements — Described as senior-secured/senior secured creditor of the Debtors; amount stated as 'approximately $27,229,824' (approximation per document); Receiver also borrowed $250,000 from FCC under a court-ordered priority charge (5% interest compounded semi-annually) - separate receiver's certificate financing, not part of the pre-filing Indebtedness. — debtor: Desert Valley Vineyard Ltd., Creston Valley Cherry Growers L | $27.2M | First Report of the Receiver |
| Secured |
1 more claim in 1 class The stack holds Secured claims.
Every creditor and every amount.
Card required. Nothing charged for 5 days. Cancel anytime.
Already a subscriber? Sign in.
See all plansThis proceeding was commenced by a secured creditor. The record does not include the debtor’s own statement of assets and liabilities — that ceiling is the record’s, not this page’s.
4 transactions · 4 approved — The Court approved the Transaction under the Sale Agreement with the Gudjonson purchasers and authorized vesting of the Purchased Assets upon delivery of the Receiver's Certificate.Order Approving Sale (37th) · 19 Oct 2026
| Purchaser | Price | Status | Source |
|---|---|---|---|
| 1013830 B.C. Ltd.the lands and buildings described in the Sale Agreement (the Purchased Assets), seven parcels in Canyon, BC listed on Schedule C · real property · agreement 28 Aug 2026 | Subscribers | Approved19 Oct 2026 | Order Approving Sale (Canyon) |
| 1596490 B.C. Ltd., Rajvinder Dhaliwal and Danielle Dhaliwalthe lands and buildings described in the Sale Agreement (the Purchased Assets) · real property · agreement 27 Aug 2026 | not stated | Approved19 Oct 2026 | Order Approving Sale (Winery) |
| Jay Edward Gudjonson, Vanessa Lynn Gudjonson, Edward Frederick Gudjonson and Carol Ann Gudjonsonthe lands and buildings described in the Sale Agreement (Parcel Identifier 009-941-746, District Lot 14619, Kootenay District) and the purchased assets as defined in Section 1.1.29 of the Sale Agreement · real property · agreement 26 Aug 2026 | Subscribers | Approved19 Oct 2026 | Order Approving Sale (37th) |
| Lower Kootenay Bandthe lands and buildings described in the Sale Agreement (the Purchased Assets), real property in the Nelson Land Title District · real property · agreement 31 Aug 2026 | not stated | Approved19 Oct 2026 | Order Approving Sale (Lister Block) |
FCC: a distribution.Second Report of the Receiver · 11 Sep 2026
| Class | Creditor | Claims | Recovery | Basis | Source |
|---|---|---|---|---|---|
| Secured | FCC | — | a distributioninterimconditional | per the receiver | Second Report of the Receiver · 11 Sep 2026 |
Each row is one filing's statement, copied as it reads and never computed. "Estimated" is the officer's forecast; "Under the plan" is the plan's or proposal's own term; "Final" is a declared or paid distribution; a row with no chip states no footing. A range is the two numbers stated; "of proven claims" is the document's own denominator.
| Date | Document | File |
|---|---|---|
Order Approving Sale (37th)
| PDF · Subscribers | |
Order Approving Sale (Canyon)
| PDF · Subscribers | |
Order Approving Sale (Lister Block)
| PDF · Subscribers | |
Order Approving Sale (Winery)
| PDF · Subscribers | |
Order for Interim Distribution
| PDF · Subscribers | |
| NOA | PDF · Subscribers | |
Second Report of the Receiver
| PDF · Subscribers | |
Service List
| PDF · Subscribers | |
Sales Process Order
| PDF · Subscribers | |
| Application Response of Farm Credit Canada | PDF · Subscribers | |
| Application Response of the Dhaliwal Respondents | PDF · Subscribers | |
First Report of the Receiver
| PDF · Subscribers | |
| Notice of Application | PDF · Subscribers | |
Notice and Statement of Receiver
| PDF · Subscribers | |
Receivership Order
| PDF · Subscribers | |
| Affidavit #2 of R. Dhaliwal | PDF · Subscribers | |
| Notice of Hearing | PDF · Subscribers | |
| Affidavit #4 of Chantal Keely | PDF · Subscribers | |
| Affidavit #3 of Chantal Keely | PDF · Subscribers | |
| Affidavit #1 of Charmaine Froese Kowalchuk | PDF · Subscribers | |
| Affidavit #1 of Louise Volpatti | PDF · Subscribers | |
| Affidavit #1 of Cheryl Mara | PDF · Subscribers | |
| Response to Petition (CherryCrest) | PDF · Subscribers | |
| Affidavit #1 of R. Dhaliwal | PDF · Subscribers | |
| Response to Petition (Dhaliwal) | PDF · Subscribers | |
Affidavit #1 of Chantal Keely (Pt 1 of 2)
| PDF · Subscribers | |
Affidavit #1 of Chantal Keely (Pt 2 of 2)
| PDF · Subscribers | |
Petition
| PDF · Subscribers | |
Filing titles and dates are public, and so is each filing's own page. The figures read from them are for subscribers.
CiteProceedings., “H&R Orchards” (Receivership (court-appointed)), Supreme Court of British Columbia. Retrieved 5 November 2026, https://proceedings.ca/case/h-r-orchards
Sources last checked · summary updated 7 August 2026 · Report a correction · Printed from proceedings.ca/case/h-r-orchards
Facts and summaries are extracted automatically from the court filings linked on each page; the filings remain the authoritative record. Suggested corrections are reviewed against the source filings.