Proceedings.

H&R Orchards

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Proceeding
Receivership (court-appointed)Section 243(1) of the Bankruptcy and Insolvency Act (BIA) and Section 39 of the Law and Equity Act (LEA)
File
H-251141
Filings held28
Last activity19 Oct 2026
On the record205 days
Secured debtSubscribers
OverviewSummary updated

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.

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Case updates28 dated entries
#Sale

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)

#Order

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)

#Sale

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.

Source: Order Approving Sale (Lister Block)

#Report

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

#Order

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

#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

#Filing

Farm Credit Canada applied in the Supreme Court of British Columbia under s. 243(1) of the BIA and s. 39 of the Law and Equity Act for a receiver.

Source: Petition

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.

Parties

Debtor

H&R Orchards

Receiver

EY

Bench and counselPer the orders and service lists on the record

Bench

JudgeCourtOn this docketCases on record
Justice GropperSupreme Court of British Columbia6 orders, Apr 2026 – Oct 20265 cases on record

Counsel of record

PartyCounselFirst seenSource
ReceiverEYLawson Lundell LLP6 Aug 2026Service list · 6 Aug 2026
ApplicantFarm Credit CanadaBaker Newby LLP6 Aug 2026Service list · 6 Aug 2026
Creditor] Attention: EmailBaker Newby LLP14 Apr 2026Order · 14 Apr 2026
CreditorGate 22 Winery LtdDLA Piper (Canada) LLP6 Aug 2026Service list · 6 Aug 2026
Capital structureAs asserted in the filings
Priority classCreditorAmountSource
SecuredFarm 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$27.2MFirst Report of the Receiver
Secured

1 more claim in 1 class The stack holds Secured claims.

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This 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.

Sale processAs stated in the filings

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

PurchaserPriceStatusSource
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 2026SubscribersApproved19 Oct 2026Order 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 2026not statedApproved19 Oct 2026Order 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 2026SubscribersApproved19 Oct 2026Order 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 2026not statedApproved19 Oct 2026Order Approving Sale (Lister Block)
AdvisorsSotheby's International Realty Canada (sale agent); Century 21 (sale agent)Second Report of the Receiver
Closing termsVesting occurs upon delivery by the Receiver of the Receiver's Certificate; vacant possession is to be delivered at 12:00 noon on the Closing Date as defined in the Sale Agreement.Order Approving Sale (37th)
RecoveriesAs stated in the filings

FCC: a distribution.Second Report of the Receiver · 11 Sep 2026

ClassCreditorClaimsRecoveryBasisSource
SecuredFCC—a distributioninterimconditionalper the receiverSecond 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.

Documents
28 filings
DateDocumentFile
Order Approving Sale (37th)
  • Closing terms Vesting occurs upon delivery by the Receiver of the Receiver's Certificate; vacant possession is to be delivered at 12:00 noon on the Closing Date as defined in the Sale Agreement.
  • Order date 19 October 2026
  • Purchaser Jay Edward Gudjonson, Vanessa Lynn Gudjonson, Edward Frederick Gudjonson and Carol Ann Gudjonson · the 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 · approved
  • Sale outcome Sale 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.
  • + 1 more extracted fact
PDF · Subscribers
Order Approving Sale (Canyon)
  • Closing terms Vesting is effective upon delivery by the Receiver of the Receiver's Certificate; vacant possession is delivered at 12:00 noon on the Closing Date; the Receiver may extend the Closing Date with the Purchaser's consent without further order.
  • Order date 19 October 2026
  • Presiding officer Justice Gropper
  • Purchaser 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 · approved
  • + 2 more extracted facts
PDF · Subscribers
Order Approving Sale (Lister Block)
  • Closing terms Vacant possession of the Purchased Assets to be delivered by the Receiver to the Purchaser at 12:00 noon on the Closing Date; vesting takes effect upon delivery of the Receiver's Certificate.
  • Order date 19 October 2026
  • Presiding officer Justice Gropper
  • Purchaser Lower Kootenay Band · the lands and buildings described in the Sale Agreement (the Purchased Assets), real property in the Nelson Land Title District · real property · approved
  • + 2 more extracted facts
PDF · Subscribers
Order Approving Sale (Winery)
  • Closing terms Vesting is effective upon the Receiver's delivery to the Purchaser of the Receiver's Certificate; vacant possession is to be delivered at 12:00 noon on the Closing Date, and the Receiver may extend the Closing Date with the Purchaser's consent without a further order.
  • Order date 19 October 2026
  • Presiding officer Justice Gropper
  • Purchaser 1596490 B.C. Ltd., Rajvinder Dhaliwal and Danielle Dhaliwal · the lands and buildings described in the Sale Agreement (the Purchased Assets) · real property · approved
  • + 2 more extracted facts
PDF · Subscribers
Order for Interim Distribution
  • Presiding officer Justice Gropper
PDF · Subscribers
NOAPDF · Subscribers
Second Report of the Receiver
  • Operational summary The Receiver is executing a court-supervised sales process for the Desert Valley, Dhaliwal and H&R lands, has entered into multiple PSAs subject to court approval, continues limited winery/vineyard operations (irrigation and crop maintenance) until closing, and proposes an interim distribution to FCC from net sale proceeds.
  • Cash on hand · Disbursements · Financial position Subscribers
  • + 7 more extracted facts
PDF · Subscribers
Service List
  • Counsel Lawson Lundell LLP
PDF · Subscribers
Sales Process Order
  • Order date 11 June 2026
  • Presiding officer Justice Gropper
  • Sale outcome Sale process approved — The Sales Process is hereby approved
  • Break fee Subscribers
  • + 1 more extracted fact
PDF · Subscribers
Application Response of Farm Credit CanadaPDF · Subscribers
Application Response of the Dhaliwal RespondentsPDF · Subscribers
First Report of the Receiver
  • Sale advisor Sotheby's International Realty Canada (listing broker)
  • Sale outcome Sale process approved — Sales Process developed and to be conducted by the Receiver, not yet resulted in any accepted offer
  • Financial position · Secured creditors Subscribers
  • + 1 more extracted fact
PDF · Subscribers
Notice of ApplicationPDF · Subscribers
Notice and Statement of Receiver
PDF · Subscribers
Receivership Order
  • Applicant Farm Credit Canada
  • Appointee Ernst & Young Inc.
  • Appointee role Receiver and Manager
  • Commencement date 14 April 2026
  • + 5 more extracted facts
PDF · Subscribers
Affidavit #2 of R. DhaliwalPDF · Subscribers
Notice of HearingPDF · Subscribers
Affidavit #4 of Chantal KeelyPDF · Subscribers
Affidavit #3 of Chantal KeelyPDF · Subscribers
Affidavit #1 of Charmaine Froese KowalchukPDF · Subscribers
Affidavit #1 of Louise VolpattiPDF · Subscribers
Affidavit #1 of Cheryl MaraPDF · Subscribers
Response to Petition (CherryCrest)PDF · Subscribers
Affidavit #1 of R. DhaliwalPDF · 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
  • Applicant FARM CREDIT CANADA
  • Commencement date 9 October 2025
  • Court IN THE SUPREME COURT OF BRITISH COLUMBIA
  • Court file no VLC-S-H-251141
  • + 2 more extracted facts
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.