British Columbia · Receivership (court-appointed)
Petition to the Court, filed September 24, 2026
Application / notice of application · 24 September 2026
AI summary
A plain-English summary drawn only from this filing: what it is, why it matters, and the parties, amounts and dates it turns on.
What we verified from this filing13 verified
- applicantBANK OF MONTREAL
- commencement date24 September 2026
- courtIN THE SUPREME COURT OF BRITISH COLUMBIA
- court file noS267204
- appointeeAlixPartners Restructuring, Inc.
- appointee rolereceiver and manager
- statutory basissection 243 of the Bankruptcy and Insolvency Act, RSC 1985, c. B-3 and section 39 of the Law and Equity Act, RSBC 1996, c. 253
- secured creditorsnote: Stated 'justly and truly owing' as of September 16, 2026, excluding legal costs, plus accruing interest and costs. Earlier acknowledged amount: $20,106,064.30 as of March 3, 2026 (Interim Forbearance Agreement). Includes $5,000,000 held by Fulcrum V as participant, subordinate to BMO's position (BMO acts as agent for that interest). Partial Investor Guarantees of up to $5,000,000 from Fulcrum V were released in exchange for the participation. · page: 5 · as of: 2026-09-16 · amount: 21850586.27 · debtor: Canstar Restorations Limited Partnership (Borrower); Canstar Restorations GP Inc.; L.U.N.A Restorations Inc. (LUNA Amalco, guarantor/security grantor) · creditor: Bank of Montreal · currency: CAD · security: General security agreements (Canstar GSA dated July 8, 2016 over all present and after-acquired personal property plus floating charge over real property; ABK, NorHaz, Universal, Old LUNA GSAs, now binding LUNA Amalco); unlimited guarantees from ABK, NorHaz, Universal, Old LUNA; registered in BC, Alberta and Saskatchewan PPRs. Facilities: revolving up to lesser of $15,000,000 and Borrowing Base (a limit, not a balance); term facility $6,367,584.48; equipment lease facility $225,603; MasterCard facility up to $750,000. Described as first-ranking, subject in certain cases to registrations against serial numbered goods.
- secured creditorsnote: Stated as 'approximately $19.2 million' as at July 31, 2026, with interest and costs continuing to accrue; BMO states this is its understanding. Subordinate to BMO. Separate from the $5,000,000 participation interest in the BMO Credit Facilities, which is carried within BMO's figure. Fulcrum also controls the limited partnership interests and Canstar GP shares (related party). · page: 7 · as of: 2026-07-31 · amount: 19200000 · debtor: Canstar Restorations Limited Partnership and/or LUNA Amalco · creditor: Fulcrum Capital Partners Inc. and/or affiliates (incl. Fulcrum Capital Partners V, LP; FCP Canstar HoldCo Inc. as Security Agent per service list) · currency: CAD · security: Subordinate secured debt (details of security not stated in these pages)
- secured creditorsnote: Participation and Administration Agreement dated June 29, 2026; $5,000,000 is a maximum participation amount. Not additional to BMO's $21,850,586.27 — it is a portion of it. Related party (Fulcrum controls the equity). · page: 7 · as of: 2026-06-29 · amount: 5000000 · debtor: Canstar Restorations Limited Partnership · creditor: Fulcrum Capital Partners V, LP (participant in BMO Credit Facilities) · currency: CAD · security: Proportionate participation interest in the BMO Credit Facilities and associated security, administered by BMO as agent; subordinate to BMO's interest
- financial positionnote: Financial covenant breaches: Total Funded Debt to EBITDA 7.92:1 as of December 31, 2025 (max 4.00:1); Fixed Charge Coverage 0.76:1 (min 1.20:1). Respondents' insolvency asserted by BMO on the basis of inability to repay the Credit Facilities now due in full. · page: 13 · basis: No balance sheet stated. Lender-side petition says only 'There is also no equity in the Property' and that the Proposed Transaction 'will not be sufficient to repay all of the Respondents' indebtedness to creditors.' · scope: Respondents: Canstar Restorations LP, Canstar Restorations GP Inc., L.U.N.A Restorations Inc. · currency: CAD
- secured creditorsnote: Amounts not stated. Service list identifies Foss National Leasing Ltd., Farmington Leasing Limited, Wells Fargo Equipment Finance Company, Meridian OneCap Credit Corp., Addison Leasing of Canada Ltd. and Enterprise Fleet Management Canada, Inc. as 'Creditor' recipients; their specific security and amounts are not stated in the document. · page: 18 · creditor: PPSA equipment financiers (PMSI class) · currency: CAD · security: Registrations against serial numbered goods ranking ahead of BMO in certain cases
- counselStikeman Elliott LLP