Allstar Trenching: $360,915 to the CRA, $240,000 of Servus's $3.7 million

Allstar Trenching & Excavating Inc. provided trenching and excavating services to commercial and residential construction projects in and around Edmonton from leased office, shop and yard space on 107 Avenue NW, and before an interim receiver was appointed it "had generally ceased operations," per the Receiver's Fourth Report to Court, Oct. 13, 2026, paras. 7, 11. On October 19, 2026, Justice Johnston of the Court of King's Bench of Alberta pronounced the final distribution and discharge order in its receivership. It authorizes and directs MNP Ltd., the receiver, to repay its borrowings of $50,000 plus accrued interest, to pay the Canada Revenue Agency $360,915 "pursuant to its property claim," and to pay Servus Credit Union Ltd. $240,000, with any surplus left when the administration concludes also going to Servus, per the Distribution and Discharge Order, Oct. 19, 2026, paras. 6–7. The order was filed on November 2.

Against that, the receiver put Allstar's debt to the credit union at $3,737,941 as at December 3, 2025, plus accrued and accruing interest and legal fees. "The funds available for distribution will not be sufficient to repay the Servus Debt in full," it told the court. "Accordingly, there will be no funds available for distribution to junior-ranking secured or unsecured creditors," per the Receiver's Fourth Report to Court, Oct. 13, 2026, paras. 36–37.

Seventeen of sixty

Servus lent to Allstar and to its parent, 2390850 Alberta Inc., which owns all of Allstar's voting shares, for the purchase of property and equipment and to fund operations, and both companies granted it security over all their present and after-acquired personal property, per the Receiver's Fourth Report to Court, Oct. 13, 2026, paras. 9, 12, 14. As of October 29, 2025, Servus's affidavit says, Allstar owed $1,247,557.78 on an authorized overdraft, smaller amounts on four term loans and $106,428.53 on a business Mastercard. The largest single loan on the affidavit's figures was the parent's: $2,104,777.44 on a term loan that Allstar had guaranteed up to a principal amount of $2,650,000, per the Servus affidavit, Nov. 6, 2025, paras. 11, 20, 27.

The same affidavit, sworn by a Servus special loans manager, set out the defaults. By its account, Allstar had exceeded the limit on its operating line since September 1, 2025, by $733,657.77, and had "accumulated 53 requests for an extension of additional credit since that time, together with 16 non-sufficient fund charges"; it had provided no monthly financial reporting since May 2025; the parent had made no loan payment since September 1, with arrears of $109,260. Servus demanded payment on or about October 31, 2025 and served notices of intention to enforce security under s. 244 of the Bankruptcy and Insolvency Act. It had "no recent information regarding Allstar's operations, or with respect to the location of the Allstar Equipment," the affiant swore, and the last deposit Allstar made with it was on August 26, 2025. It asked for an interim receiver "as a function of preservation, and not liquidation," per the Servus affidavit, Nov. 6, 2025, paras. 29–30, 33–34, 42, 44.

The trustee's later account of Allstar's own figures gives the scale. From what it called the company's limited books and records, not reviewed by an independent, external accountant, the trustee reported that Allstar had revenue of $13.171 million and a net profit of $1,151,000 in the year ended April 30, 2025, then revenue of $2.409 million and a net loss of $484,000 in the period ended January 14, 2026, per the Trustee's Report to Creditors, Feb. 12, 2026, pp. 2–3.

Justice J.S. Little appointed MNP interim receiver of Allstar on November 13, 2025, under s. 47(1) of the BIA and s. 13(2) of the Judicature Act, with the interim receivership to end no later than November 24 unless renewed, per the Interim Receivership Order, Nov. 13, 2025, paras. 1–2. MNP went to the leased premises that day, took inventory of the yard and secured the front gate. The company was not open for business and the office "appeared vacant." The yard held a dump truck, a tractor, a cube van, four trucks, five excavators, five skid steers, two 20-foot sea cans and miscellaneous attachments. Measured against the Alberta personal property registry, the interim receiver reported, "a substantial number of assets are missing and unaccounted for. Of the 60 assets identified at PPR, the Interim Receiver has only been able to locate and secure 17," per the Interim Receiver's First Report to Court, Nov. 24, 2025, paras. 15–17.

When the landlord let MNP into the office and shop on November 17, the premises were vacant and contained no books and records. The three directors on the Alberta corporate registry had not answered the interim receiver's request for information by the time of its first report, though a prior employee told MNP on November 17 that Allstar was retaining counsel, and McKercher LLP confirmed on November 21 that it had been retained, per the Interim Receiver's First Report to Court, Nov. 24, 2025, paras. 6, 18–22, 24. On November 17, 2025, the receiver's later reports say, those directors were removed and another person was named Allstar's sole director, per the Receiver's Second Report to Court, Dec. 10, 2025, para. 7.

On November 24, Justice D. Mah appointed MNP receiver of both companies under s. 243(1) of the BIA, s. 13(2) of the Judicature Act and s. 65(7) of Alberta's Personal Property Security Act, per the Receivership Order, Nov. 24, 2025, para. 2.

Radisson, Scarborough and 132 Avenue

On December 2, one of the prior directors contacted the receiver to say the debtors were gathering books and records and would provide an asset listing identifying where the missing assets were. The next day the receiver received what its second report calls "an incomplete asset listing from a prior employee," which placed Allstar assets at three addresses: 101-107 Albert Street in Radisson, Saskatchewan; 4061 Sheppard Avenue East in Scarborough, Ontario; and 3923 – 132 Avenue NW in Edmonton. The receiver understood that all three were owned by third parties and that "no formal lease or storage agreements exist," per the Receiver's Second Report to Court, Dec. 10, 2025, paras. 19–21.

The receiver retained a bailiff and, on December 5, sent a representative to Radisson, where it located and secured 26 pieces of equipment, among them excavators, backhoes, skid steers, trucks and trailers. Because the Radisson yard "was not fenced, nor secure," the receiver moved them to a secure yard in Saskatoon. It confirmed five assets at the Scarborough yard and, after contacting the yard's owner, that they were secure, and arranged to move the vehicle at 132 Avenue to a secure location. Nine assets on the registry searches were still unaccounted for, per the Receiver's Second Report to Court, Dec. 10, 2025, paras. 22–27, 30, App. E.

The same report put registered secured parties on notice: the receiver expected that many of them "may be unaware that their security was moved by, or on behalf of, Allstar to another jurisdiction," and cautioned them to discuss it with counsel. Given the costs involved, it would not bring the property in Saskatchewan and Ontario back to Alberta, per the Receiver's Second Report to Court, Dec. 10, 2025, paras. 31–35.