Affordable housing builder Assembly files NOI, interim receiver also appointed

Assembly Corp., a Toronto construction company focused on affordable housing and social infrastructure projects, filed an NOI on May 6, 2026, and had an interim receiver appointed on June 4, 2026. The company’s NOI proceedings were extended to July 20, 2026 on the same day.

Assembly operates a construction business specializing in active affordable housing projects in the Toronto area, using a “configure-to-order” model built around repeatable design elements that can be fabricated offsite and assembled onsite. The company is wholly owned by Assembly Holding Corp. and its shareholder group has reportedly invested approximately $4 million of equity and debt into the business since mid-2021. Assembly was incorporated in 2020 and changed its name from R-Hauz Services Inc. to Assembly Corp. in October 2023.

The company’s current portfolio includes multiple public and not-for-profit projects. They include 215 Wellesley Street East for Elizabeth Fry Toronto Branch, an 8-storey, 48-unit mixed-use project that is approximately 98% complete; 2217 Kingston Road for Thunder Woman Healing Lodge Society, a 6-storey transitional residential facility that is approximately 85% complete; and 7 Vanauley Street for YMCA of Greater Toronto, a 6-storey mass timber affordable housing project with 31 suites that is approximately 95% complete. Other projects include 60 Bowden Street for WoodGreen Community Housing, a 50-unit seniors affordable housing project; 1258 Rebecca Street in Oakville for the Regional Municipality of Halton, a 14-unit residential subdivision now fully occupied; 28 Algoma Street for Thunder Woman Healing Lodge Society; and a prefabricated housing project for Constance Lake First Nation.

Assembly’s liquidity problem reflects project losses, delayed work and lender enforcement pressure. Assembly’s modern construction model relied on mass timber CLT panels, prefabricated wall systems and other methods with limited Ontario cost benchmarks, experienced trade partners and mature supply chains. The company also used Integrated Project Delivery contracts to meet CMHC fixed-price contracting requirements, but the structure left Assembly with fixed upstream prices from clients and variable downstream pricing from trades. Several major projects then suffered an 11-month delay linked to construction formwork issues, prompting Assembly to sue a former general contractor in March 2026 for $3.116 million and to seek a declaration that $195,476.39 plus HST is held in constructive trust.

The broader GTHA real estate downturn added pressure by stressing suppliers and disrupting Assembly’s project portfolio. PaceZero delivered demand letters and section 244 notices on or about April 27, 2026, and issued an activation notice under a blocked account agreement with CIBC. The result was that Assembly lost access to a CIBC account holding approximately $240,000, which it said it needed for critical expenses.

As at May 23, 2026, Assembly had approximately $7.68 million in total assets, including approximately $6.17 million of current assets and approximately $1.51 million of non-current assets. It had approximately $23.8 million of liabilities, including approximately $15.2 million of current liabilities and approximately $8.6 million of non-current liabilities. Senior secured creditor PaceZero Sustainable Credit Fund II is owed $3.5 million under a term loan facility and approximately $1.5 million under a revolving facility, while unsecured creditors are owed approximately $12.7 million.

The restructuring plan is centred on completing active projects, collecting receivables and securing funding to bridge project gaps. Assembly is negotiating arrangements with customers, contractors and project creditors, including Loftin Ltd., the general contractor on four ongoing projects. Assembly also submitted a financing proposal to Build Canada Homes on May 15, 2026 and has held meetings with key individuals there.

Construction trust issues are a major focus. During the weeks of May 10, May 17 and May 24, 2026, Assembly collected customer funds subject to statutory trusts and paid $1.363 million in pre-filing amounts that the proposal trustee viewed as critical to project continuation and as discharging section 8 Construction Act trust obligations. The proposal trustee also reviewed customer payments made directly to project creditors and reported that, as of May 28, 2026, Assembly’s customers had paid $405,015.75 directly to project creditors. The stay extension order authorizes Assembly, with the proposal trustee’s approval, to pay Construction Act trust amounts in the ordinary course and approved trust payments already made during the proposal proceedings.

However, lien activity has complicated the cash flow. Loftin obtained an order on June 2, 2026 lifting the stay to permit it to perfect an existing lien on the Wellesley project and preserve liens on the Bowden, Vanauley and Kingston projects, while Foremont Drywall had registered a construction lien on the Vanauley project on May 25, 2026.

Accordingly, PaceZero supported the stay extension only if the proposal trustee was also appointed interim receiver. The interim receivership order does not contemplate the interim receiver taking possession or control of Assembly’s property at this stage.

GlassRatner is the proposal trustee and interim receiver. Counsel is Fogler for Assembly, Naymark for the proposal trustee / interim receiver, DLA Piper for PaceZero, and Duncan, Linton for Loftin.