BECC Construction Inc., Dali Drywall Ltd., 2737566 Ontario Inc., and Massive Devcon Corporation, Receivership

BECC Construction Inc., Dali Drywall Ltd., 2737566 Ontario Inc., and Massive Devcon Corporation, Ontario-based construction companies, were placed into receivership on July 4 on application by RBC, owed approximately $4.3 million.

The companies have defaulted on the RBC loan, including by having their accounts garnished by a bonding company, entering into banking arrangements with BMO and allowing source deduction liabilities to accrue.

The parties had agreed to delay the appointment of a receiver until July 4 to allow the companies to negotiate an agreement with a minority shareholder to purchase the debt and security of RBC. This transaction did not complete and KPMG was appointed receiver.

Counsel is Aird & Berlis for RBC, BLG for the receiver, Loopstra Nixon for the companies, and Gowling WLG for Ottawa Community Housing Corporation.