Everwood: ten townhomes sold, a DIP repaid, and a proposal resting on Phase 2

Everwood is a gated community in Maple Ridge's Silver Valley: 35 townhomes, each with three or four bedrooms, a side-by-side garage, a private patio and a backyard, according to the first affidavit of Talbir Mann, a director of the developer, 1281805 B.C. Ltd. Eleven units of the first phase were completed and sold around November 7, 2025. Ten more, in two buildings, were due for completion by June 3 and July 29, 2026, and six of those were under pre-sale contracts worth $5,898,000 in total, per the Affidavit No. 1 of Talbir Mann, Mar. 31, 2026, paras. 3–4, 8–9. The company attributes its insolvency to "an unanticipated overrun of the timeline for construction and resultant cost overruns, including as a result of the need to make ongoing interest payments to Envision over that time." Envision Financial, its mortgage lender, had advised that it would not make further funds available to complete Phase 1. One purchaser's mortgage financing was good only to June 4, and all of them, the director deposed, had "to varying extents, reorganized their lives in anticipation of the earlier completion of the project," per the same affidavit, paras. 19–20, 23.

Trade creditors had started to lien the site, "stifling the Company's ability to attract additional financing," and on March 26, 2026 the company filed a notice of intention to make a proposal under the BIA, with FTI Consulting Canada Inc. as proposal trustee, per the First Report of the Proposal Trustee, Apr. 20, 2026, paras. 1, 6–7. Five months on, the trustee's Fourth Report records all ten of the unfinished units sold, nine of them closed and the tenth scheduled to close on September 10; the $2.4 million interim facility drawn in full and repaid on August 26; and approximately $6.25 million held between the trustee and the company, per the Fourth Report of the Proposal Trustee, Sept. 2, 2026, paras. 17, 24, 26–27. On September 3 the company applied to extend its time to file a proposal to September 25, 2026, per its Notice of Application, Sept. 3, 2026, Part 1, para. 1.

A DIP from the mortgage lender

Envision financed Everwood through two offers of credit: one of June 23, 2023 for Phase 1, on which $7,024,400.74 remained owing, with interest of approximately $34,756.35 a month, and one of January 28, 2025 for Phase 2, under which $3,111,239.95 had been advanced, with interest of approximately $15,394.24 a month, per the Affidavit No. 1 of Talbir Mann, Mar. 31, 2026, para. 14. The creditor list in the trustee's First Report puts Envision's secured claim at $10,165,946.53. Eighteen others appear beside it as secured, trade suppliers that have registered liens on title, the largest at $356,504.50, and the list totals $12,135,073.49 secured and $203,483.07 unsecured. The trustee adds that Wood Lock Developments Ltd., a party to the Everwood joint venture and a company owned by one of the debtor's directors, is the counterparty to most of the construction contractors, so not every contractor owed money is on the debtor's list, per the First Report of the Proposal Trustee, Apr. 20, 2026, paras. 4, 43, 46–47. Several of the liens appear to the company to be for more than it believes is due, per the same report, para. 39.

Before filing, the company asked Envision for interim financing and was told it would not be supportive. With the trustee's help it approached other lenders, and on March 30 received a term sheet from Maynbridge Capital Inc.: $2,400,000 at 12%, for six months, conditional on court approval and a super-priority charge, per the Affidavit No. 1 of Talbir Mann, para. 28. After the filing and the Maynbridge term sheet, Envision advised that it was prepared to provide a DIP loan, per the First Report, paras. 15, 27–30. In his second affidavit, Mr. Mann deposes that Envision "indicated they would advance a competing term sheet," that agreement was reached around April 17, and that "The negotiation of such term sheet has already significantly delayed the advancement of these proceedings." The executed offer is for a non-revolving super-priority facility of up to $2,400,000 at prime plus 3.50%, with a $55,500 non-refundable commitment fee and a $101,400 interest reserve drawn from the budget; as units sold, Envision would release its security over each one on receipt of 100% of the sale proceeds, less commissions, reasonable closing costs and taxes, per the Affidavit No. 2 of Talbir Mann, Apr. 19, 2026, paras. 10–12 and Ex. "A", pp. 2–4.

The trustee compared those terms with DIP facilities of similar size in other proceedings and found them reasonable, per the First Report, paras. 34–36. Its Second Report describes the Envision facility as having "more favourable borrowing terms" than Maynbridge's; the switch brought a commitment fee the original forecast had not provided for, and that forecast had also left out Maynbridge's own non-refundable fee, per the Second Report of the Proposal Trustee, May 29, 2026, paras. 25–27. The trustee's latest cash-flow statement puts that fee at $25,000, per the Fourth Report of the Proposal Trustee, Sept. 2, 2026, App. "A", n. 4.

On April 20, Justice Basran authorized the company to borrow up to $2,400,000 from Envision, secured by a DIP Lender's Charge ranking "in priority to all other security interests, trusts, liens, mortgages, charge and encumbrances," and extended the time to file a proposal to June 9, per the Order (DIP Financing), Apr. 20, 2026, paras. 2–3, 5. In July the trustee reported that Envision "incorrectly withdrew funds from the first draw on the DIP Facility for the existing mortgage for Phase I"; the error was corrected and the amount restored to the facility, per the Third Report of the Proposal Trustee, July 23, 2026, para. 27.

Finishing the first phase

As at May 29 the company held no cash and expected to request another advance within the week. The trades had generally agreed to finish post-filing work on prepayment terms, which the trustee says accounts for higher-than-anticipated upfront disbursements, and management considered the original budget still sufficient to complete Phase 1, per the Second Report of the Proposal Trustee, May 29, 2026, paras. 28, 30–31. The trustee supported vesting orders that would pass title to purchasers free of the liens, with the closing proceeds held by the trustee in the property's place. Six of the seven agreements then before the court pre-dated the filing. Breakside Real Estate Group, the company's sales agent, advised that its pricing was in line with the Maple Ridge market, and the trustee's view was that if the units were re-marketed, "the value may be subject to negative variations which would be detrimental to the interests of the stakeholders," per the same report, paras. 46–54. On June 1, Justice Blake granted vesting orders for seven strata units and extended the time to file to July 24, per the Notice of Application, Sept. 3, 2026, Part 2, para. 5.