BC civil contractor placed into receivership after failed refinancing and payroll crisis

West Horizon Contracting Inc., a Smithers, British Columbia-based civil construction company specializing in bridge maintenance, road maintenance and construction services, was placed into receivership on September 18, 2026, on application by Royal Bank of Canada, following a liquidity crisis that left the company unable to meet payroll and other obligations.

West Horizon, formerly known as Burnett McCreery Ventures Inc., has operated under its current name since March 14, 2017.

The company was financed under an amended and restated credit agreement dated May 8, 2025, which provided for a $3 million revolving demand facility, a $500,000 revolving term facility and a $200,000 credit card facility. RBC alleged that West Horizon owed approximately $3.9 million as of June 12, 2026, including interest, costs and expenses. The indebtedness was secured by a general security agreement and other security arrangements, including guarantees from the directors and related parties.

RBC issued demand letters and notices of intention to enforce security on May 7, 2026, following defaults under the credit agreement. The bank subsequently entered into a forbearance agreement on May 11, temporarily increasing West Horizon's permitted borrowing limit by $500,000 until June 26, subject to certain conditions, including additional guarantees and security.

The arrangement quickly unravelled. On June 2, West Horizon exceeded its approved borrowing limit by approximately $204,000 after making payroll payments. The following day, RBC demanded that the company bring its borrowing back within the permitted limit, but West Horizon advised that the excess would be covered on June 4. Instead, the company continued to exceed the limit, reaching approximately $245,000 above the permitted amount.

RBC responded by restricting further payroll payments to available account balances and rejecting approximately $220,000 in cheques and payments between June 2 and June 12. The bank said the returned payments and West Horizon's inability to pay employees and other parties raised serious concerns about the company's liquidity and its ability to continue operating.

West Horizon had been pursuing a refinancing with National Bank of Canada. On May 21, counsel for the company advised RBC that a refinancing was in process and was expected to repay the bank in full. On June 1, counsel indicated that written confirmation was expected that week. RBC said it had received no confirmation of the proposed refinancing by the time it filed its petition on June 24.

RBC argued that management had lost the ability to operate the business in a commercially reasonable manner and that a receivership was necessary to preserve the company's assets. The bank also expressed concern that further delay would diminish recoveries.

The receiver's September 24 statutory notice lists approximately $10.7 million in estimated creditor claims, comprising approximately $4.7 million in secured claims and $6 million in unsecured claims. The secured creditor listing includes approximately $4 million owing to RBC and $700,000 to the Canada Revenue Agency, while amounts owing to numerous other secured creditors remain undetermined. Significant unsecured creditors include Always Angus Farm, Quality Excavating & Construction, Rapid-Span Precast Limited Partnership and Terus Construction Ltd., each listed as being owed more than $500,000.

BDO is the receiver. Counsel is MLT Aikins for RBC and Pihl Law for West Horizon.