Evo Industrial: seven vehicles, five offers and a $950,000 share sale

The receiver understands that the principal line of business of the six debtors included making vehicle exhaust pipes. Evo Tunes Inc. manufactured and distributed exhaust components, including mufflers; Black Bandit Industries Inc. designed and sold performance automotive parts, including exhaust systems for diesel vehicles. The group worked from a commercial property on 191 Street in Surrey and a leased warehouse in Maple Ridge, and employed approximately 48 people when the Supreme Court of British Columbia appointed MNP Ltd. receiver on April 24, 2026, on the petition of the Business Development Bank of Canada. Finding no viable business to carry on, the receiver terminated the employees, per the Receiver's First Report, June 9, 2026, paras. 10–15 and the Receiver's Second Report, Oct. 14, 2026, para. 1.

One of the six, KPD Auto Group Ltd., is the sole registered shareholder of a company that is not itself a debtor. PFR Auto Group Inc., which does business as PFR Motorsports, is the registered owner and/or lessee of seven vehicles the receiver determined were its primary assets: a 2023 Lamborghini Urus Performante, a 2018 Lamborghini Huracan Performante, a 2024 Mercedes GT63 AMG 4Matic, two Land Rover Range Rovers, a 2022 GMC Sierra Denali 3500 and a 2019 Dodge Ram 1500, per the Receiver's Second Report, Oct. 14, 2026, paras. 16, 20, 24. On October 20, 2026, Justice Loo approved the sale of all of PFR's shares to 1585936 B.C. Ltd. for $950,000 and, by a second order, authorized the receiver to distribute net proceeds of sale to Royal Bank of Canada and BDC under the allocation in its Second Report, per the Receiver's Second Report, Oct. 14, 2026, para. 17, the Approval and Vesting Order, Oct. 20, 2026, paras. 2–3, Sched. C and the Order Made After Application (Distribution of Funds), Oct. 20, 2026, para. 2.

A dealership without its licence

Because PFR is not a debtor, the First Report explains, the receivership order gave MNP no direct authority to take possession or control of its assets; its control came through KPD, whose rights as PFR's sole shareholder the receiver could exercise, per the Receiver's First Report, June 9, 2026, para. 33. On or about May 5, 2026, as sole shareholder, it signed a shareholder resolution placing PFR into voluntary liquidation under the Business Corporations Act (British Columbia), a step it says was necessary to facilitate an orderly realization process and obtain control over the vehicles, per the Receiver's Second Report, Oct. 14, 2026, para. 22.

PFR had operated primarily as a dealership under a Vehicle Sales Authority licence, which it needed in order to sell or lease vehicles to retail consumers. On April 16, 2026, before the receivership began, the VSA cancelled it, and by the time of the Second Report PFR had made no further sales and entered no additional leases with retail customers since the receiver's appointment. "PFR did not operate as a traditional car dealership with its vehicles being sold or leased to the general public," the Second Report says. "Rather, PFR's assets were leased to the principals of the debtors …" (Receiver's Second Report, Oct. 14, 2026, paras. 18–19).

The Huracan had been materially modified, including to its engine, which the receiver says "negatively impacts its usability and marketability." The Range Rover Velar was under a lease dated July 1, 2025 giving the lessee an option to buy it at the end of the term for $15,000 if the lease remains in good standing; it remained in the lessee's possession, an arrangement the purchaser agreed to keep in place. The Urus was subject to a PPSA-registered right of first refusal held by 1267059 B.C. Ltd., which does business as Lamborghini Vancouver, requiring PFR to give 72 hours' notice of an intent to sell it, per the Receiver's Second Report, Oct. 14, 2026, paras. 21, 31(g).

Three valuations and five offers

Appraisals PFR had obtained before the receivership put the seven at $1,197,000, though the receiver understands the appraiser did no mechanical inspection and did not identify the modifications to the Huracan's engine. For fair liquidation values the receiver held multiple discussions with Accurate Effective Bailiffs, which says it facilitates the sale of approximately 500 vehicles a year. In the receiver's table, AEB's values total $992,500, or $893,250 after selling commissions; the Huracan, appraised at $325,000, carries a liquidation value of $245,000, per the Receiver's Second Report, Oct. 14, 2026, paras. 25–26, 29. AEB's email to the receiver of August 21, 2026 adds that "the VSA license does not hold a lot of value as it is a licence subject approval by VSA and new licences are readily available upon meeting the VSA criteria" (Receiver's Second Report, Oct. 14, 2026, App. A).

The receiver asked three luxury car dealerships in Greater Vancouver, Lamborghini Vancouver among them, and three auctioneers for offers, solicited one from PFR's former director, who declined, and let interested parties inspect the vehicles on site. The five offers that came back were $620,000 for four vehicles (the Urus, the GT63, the Range Rover Autobiography and the Sierra); $900,000 for everything but the Velar; a "$700,000 Net Minimum Guarantee, $30K retainer, 90/10 thereafter" for all seven; $905,000 for all seven plus two vehicles not owned by PFR; and the letter of intent, $950,000 for all seven by way of a share purchase, per the Receiver's Second Report, Oct. 14, 2026, paras. 30, 31(c).

Each of the others came in below the letter of intent, the receiver reported, and adding the liquidation values of the vehicles the two partial bids left out would not lift either past it, per the Receiver's Second Report, Oct. 14, 2026, para. 31(a)–(c).

Why the shares

The sale efforts had not expressly asked for share offers. Among its reasons the receiver cites the absence of significant regulatory barriers to the issuance of VSA licences, "such as moratoriums or restricted supply," that would give one standalone or marketable value, and that PFR was not operating as a traditional dealership "and, accordingly, offering limited to no incremental value as a going concern." After the June 15 adjournment it went back to every party that had bid on the vehicles and asked for a share offer. "None of the bidders were willing to submit a share acquisition offer as they did not place any incremental value to the Shares," it reported (Receiver's Second Report, Oct. 14, 2026, paras. 32, 34).

Its case for the letter of intent is the highest price among the offers received plus "incremental cost and time efficiencies" over an asset sale. Those it lists include avoiding the voluntary liquidation, with its time and professional fees; the purchaser's assumption of PFR's liabilities, if any, "that would otherwise be paid in priority to the Debtors' creditors"; not triggering Lamborghini Vancouver's right of first refusal; and avoiding the delays of a liquidation, including a two-to-four month creditor notification period. The receiver's view is that the price "reflects fair market value as compared to the FLV, net of costs payable on sale of the vehicles on an individual basis," per the Receiver's Second Report, Oct. 14, 2026, paras. 35, 40(a).

The buyer, and an objection withdrawn

The letter of intent, dated June 5, 2026, sets out "a binding agreement" of the purchaser to acquire all of PFR's shares for $950,000: a $285,000 deposit within 48 hours of execution, which the receiver has received, and $665,000 on closing, with no due diligence condition, per the Receiver's First Report, June 9, 2026, App. C, ss. 1, 4 and the Receiver's Second Report, Oct. 14, 2026, para. 17.