George Third & Son: a San Francisco hospital and a shareholder's loan

George Third & Son, MNP Ltd.'s First Report says, is a structural and architectural steel fabricator that has served the greater Vancouver area since 1910. It works from a single leased fabrication facility in Langley, supplies commercial, institutional and residential projects in British Columbia and the United States, and employs 41 people: 11 non-union office employees and 30 shop employees represented by Shop Local Union 712 of the International Association of Bridge, Structural, Ornamental and Reinforcing Ironworkers, per the First Report of the Proposal Trustee, Nov. 6, 2026, paras. 17, 19. The company that carries on business under that name, Trapp Avenue Industries Ltd., filed a notice of intention to make a proposal under s. 50.4(1) of the Bankruptcy and Insolvency Act on October 13, 2026, with MNP as proposal trustee, per the Certificate of Filing of a Notice of Intention to Make a Proposal, Oct. 13, 2026.

Its application in the Supreme Court of British Columbia, served on November 5 and returnable on November 10, 2026 before Justice Brongers, asks the court to extend the time to file a proposal to December 23; to approve a $500,000 interim loan from TID Holdings Inc., which holds 75% of the company's shares; to approve a $405,000 key employee retention plan; to let it pay, with MNP's prior written consent, up to $852,960 of critical suppliers' pre-filing accounts; and to grant four charges ranking "in priority to all other security interests, trusts, deemed trusts, liens and encumbrances," per the First Report, paras. 5, 18. MNP's report, dated November 6, recommends that the court grant the proposed order, and in it the loan, the bonuses and the supplier payments each come back to one job, structural steel for a hospital in San Francisco, per the First Report, paras. 45(d), 48(c), 59, 62. No order from the November 10 hearing is in the record.

Tariffs the company puts at up to 115% of contract value

The report says a director's affidavit made November 4 describes the company's history, its financial position and the reasons for the proceeding, and that MNP relies on it; that affidavit is not in the record, per the First Report, paras. 4, 15. Drawing on it, the report says the company's financial difficulties "stem principally from the trade dispute between Canada and the United States that began in 2025." In the report's account, Canada imposed a 25% counter-tariff on U.S. steel and, in January 2026, removed the exemption for steel imported for fabrication and re-export, while the United States imposed a 50% tariff on the full value of fabricated steel "together with additional layered tariffs." The company estimates that the combined tariffs on its U.S. work now range from 100% to approximately 115% of contract value, per the First Report, para. 26.

As a result, the report says, customers cancelled work in progress and backlog work and awarded it to U.S. fabricators. In 2026, it says, the company lost 22 projects with a total value of approximately $21.7 million, while local market conditions also deteriorated. Before the filing the company sought government support, relied on funding from TID to cover cash flow shortfalls and reduced its workforce, the report continues, and without an operating line of credit it was ultimately unable to meet its obligations as they came due, per the First Report, para. 27.

Its reviewed financial statements at December 31, 2025 show total assets with a book value of approximately $11.4 million, chiefly accounts receivable of approximately $3.57 million, property and equipment of approximately $3.55 million and revenue in excess of billings of approximately $2.99 million, per the First Report, para. 20.

What the company owes, and what it guarantees

The company's principal secured creditor is Roynat Inc., and the report sets out the relationship: "The Company is not a borrower from Roynat; however, it has guaranteed the indebtedness of TID and Kila to Roynat and supported that guarantee with a general security agreement." Kila Holdings Ltd. holds the other 25% of the shares. Approximately $618,745 was owing to Roynat as at October 6, 2026, the report says. MNP understands that Roynat has declared a default against TID and Kila but has not made demand on the company or issued a notice under s. 244 of the BIA, and that it has not indicated it will oppose the application, per the First Report, paras. 18, 22(a). Roynat has required its facilities to TID and Kila to be repaid by November 30, 2026, the report says (para. 43(d)).

Other registrations the company has advised of include a general security agreement securing a vendor take-back loan with approximately $75,000 outstanding, postponed to the Roynat debt; equipment registrations by De Lage Landen Financial Services Canada Inc. and Linde Canada Inc.; and a Crown charge held by the Province of British Columbia under the Employer Health Tax Act, per the First Report, para. 22(b)–(d).

The company advises that it is current on GST and PST. As at October 6, the report says, it owed approximately $1,231,977 to the Canada Revenue Agency for unremitted payroll source deductions and $262,171 to the province for Employer Health Tax, and its unsecured liabilities included trade payables of approximately $1.68 million, amounts owing to subtrades and contractors, and approximately $2.3 million of shareholder loans from TID, also postponed to Roynat, per the First Report, paras. 23–24. The company's list of creditors with claims of $250 or more, estimated as at the filing date, totals $4,142,328.83, per the Notice to Creditors, Oct. 19, 2026, p. 1 and list of creditors, p. 9. The report adds that certain creditors have asserted claims the company disputes, to be addressed through the claims process "in the event a proposal is filed" (First Report, para. 28(e)).

What the forecast depends on

The company's most significant current undertaking, the report says, is a lump-sum contract with Permasteelisa North America Corp. for the fabrication of structural steel for a hospital project in San Francisco. The project is expected to be completed in early 2027, and as at the filing date the company advises that approximately $8.1 million "remains to be paid to the Company to complete the PNA Project," per the First Report, para. 21. The report's figures are in Canadian dollars unless it says otherwise (para. 10).

The 13-week cash flow forecast appended to the report, which the company prepared with MNP's assistance and which runs to January 29, 2027, projects receipts of approximately $3.74 million, which the report says consist primarily of progress billings on the PNA Project, converted at US$1.00 = C$1.38. Its collection timing reflects management's assumption that payment terms on the project will be shortened from 45 days to 10, and MNP notes that the company's ability to meet its obligations during the forecast period, and to repay the interim loan, "is dependent on the timely receipt of collections from the PNA Project," per the First Report, paras. 29–31. Against those receipts the forecast sets $977,512 of payroll and benefits, $920,829 of PST, GST, Employer Health Tax and source-deduction remittances and $758,414 of pre-filing payments to critical suppliers. It draws the whole $500,000 interim facility in the week ending January 15, 2027 and closes the period with $120,987 of cash, per the First Report, para. 30(g) and App. "C".