The Company commenced construction of a 112-unit rental residential apartment building, together with ground-floor retail space in Edmonton, Alberta. Construction of the project was delayed due to cost overruns, the registration of several liens and a dispute between the Company and its general contractor. As a result of these issues, KingSett, the Company’s primary secured creditor, brought an application to appoint KSV as receiver and construction trustee.
The primary purpose of the receivership proceedings is to complete the construction of the project and, once complete, to commence a realization process for it. We ran a competitive process to solicit proposals from five firms to be the construction manager to complete the project. We selected a new contractor and construction activities resumed, after an extensive review of the project. While completing the project, KSV has been coordinating the leasing of the commercial and residential units in the building. Once the project is stabilized, it is the Receiver’s intention to sell the project.