Everwood: a $3.9 million forced-sale value and a proposal of up to $303,571

The first 21 townhomes at Everwood, the gated community 1281805 B.C. Ltd. is developing in Maple Ridge, are built and sold. What the company has left, according to its proposal trustee, FTI Consulting Canada Inc., is three substantially constructed units, which FTI calls Phase II, and undeveloped land proposed for 11 more, Phase III. Johnston & Doolan Appraisers Ltd., enlisted by the company, puts their as-is forced-sale value at $3.9 million as of September 4, 2026. The secured debt of the company's primary lender, Envision Financial, comes to approximately $4,640,000 by FTI's count, and FTI concludes, in its October 5 report on the company's proposal, that after holding costs, a bankruptcy trustee's fees, legal costs and sales commissions "it is unlikely that the Affected Creditors would receive any distribution in a bankruptcy scenario," per the Report of the Trustee on the Proposal, Oct. 5, 2026, paras. 12–13, 16, 23, 45–48.

The proposal, filed on September 24, provides for up to $303,571 for distribution, FTI says, which "results in an average dividend of 15 cents on the dollar," and FTI recommends that the affected creditors support it, per the same report, paras. 2, 51, 58. The creditors' meeting is set for October 15, per the Notice to Creditors regarding Proposal, Oct. 2, 2026, p. 1. The case was reported here on September 3, and again on September 19, the day after Justice Underhill authorized a second Envision interim facility of up to $1,483,319, per the Order (Interim Financing and Distribution), Sept. 18, 2026, para. 2. FTI's report calls that facility the Phase III DIP, per the Report of the Trustee on the Proposal, para. 28.

What a bankruptcy would leave

The appraisal covered both market value and forced-sale value for Phase II and Phase III; FTI received it on September 22, and its report gives the forced-sale figure. The $4,640,000 is FTI's total for Envision's secured debt with the Phase III DIP included. Besides its Phase I mortgage, Envision holds a mortgage over Phase II and the proposed Phase III with a current balance of approximately $3,157,000, per the Report of the Trustee on the Proposal, paras. 45–47. Even if the Phase II units and Phase III were to sell for more than the appraisal, FTI writes, a distribution "would not likely be received for at least a year due to the expected timeline for a sale and for the estate to be administered," per the same report, para. 49.

The Phase I mortgage, which the Phase III DIP is to pay out, stood at approximately $476,000 after the Phase I sale proceeds had repaid the first DIP and been applied to it, FTI reports, per the Report of the Trustee on the Proposal, paras. 26–27, 29. In its Fifth Report, on September 16, FTI had expected approximately $440,000 to remain if the court allowed the paydown, per the Fifth Report of the Proposal Trustee, Sept. 16, 2026, para. 20.

The company's statement of affairs, signed on September 24 by Talbir Mann, its director, and attached to FTI's report, lists one asset, the building and land at 23697 Fern Crescent, at the same $3,900,000. It puts Envision's claim at $4,640,189.87, of which $3,900,000 is secured and $740,189.87 unsecured, and total liabilities at $7,645,671.43, per the Report of the Trustee on the Proposal, App. "B", Form 78, pp. 1–2, 4 and the Affidavit #4 of Talbir Mann, Sept. 1, 2026, para. 1.

The split of the second phase into Phase II and Phase III is the subject of an application: the company is seeking the City of Maple Ridge's approval to subdivide it, and "The timing and approval of the request to subdivide remains uncertain," FTI writes, per the Report of the Trustee on the Proposal, para. 13.

Two tranches, one class

The proposal is dated September 23 on its cover. It has one class of creditors, and builders' lien claimants are in it: for the proposal's purposes the value of their security "is deemed to be $0," and they vote and take distributions with the unsecured creditors. No distribution reaches a lien claimant, though, until it has delivered to FTI a release of each claim of lien filed by it or on its behalf against the development, per the Proposal to Creditors, Sept. 23, 2026, ss. 1.1(ff), 2.5, 3.1. Creditors holding other security, such as a mortgage, are not affected, FTI says, per the Report of the Trustee on the Proposal, para. 35.

The first tranche is a "Creditor Cash Pool" of $103,571.21, which the proposal defines as "borrowed by the Company from a third party lender and related parties." Each proven affected claim takes 15% of its first $10,000 and 1% of the rest, and the entitlements are reduced proportionately if together they exceed the pool. The second tranche is the lesser of $200,000 and the net sale proceeds of the three Phase II units, shared pari passu and remitted to FTI within 30 days after those sales are completed. The proposal defines net sale proceeds as the sale receipts less the costs of completing the development, the costs of the sales, "indebtedness secured by security or Court-ordered charges having priority over the entitlement of Unsecured Creditors to the sale proceeds," and unpaid professional fees and priority amounts, per the Proposal to Creditors, ss. 1.1(gg), 1.1(r), 5.2–5.3.