Beta View Homes Ltd. and Lumina Eclipse Limited Partnership, Burnaby, British Columbia-based property developers, obtained CCAA protection on January 8 on application by KingSett Mortgage Corporation, owed approximately $189.2 million.

The companies were developing the Eclipse Brentwood project, comprised of Brentwood Tower C and the Strata Lots. Brentwood Tower C is a 34-storey tower consisting of 335 units which is 95% constructed, with approximately 224 units subject to presale agreements. The Strata Lots are completed units currently being marketed for sale.

The project was being developed by Burnaby-based real estate developer Thind Properties, whose District Northwest and Highline and Minoru Square projects were placed in receivership by KingSett in November and December.

The companies are facing significant liquidity restraints and require DIP financing to continue construction and their business operations.

KingSett has lost faith in the companies’ ability to manage their business and complete construction absent the CCAA proceedings.

The companies are in breach of their obligations to KingSett, have allowed critical insurance and building permits to be suspended and have failed to meet their obligations to CRA, which has obtained an almost $12 million judgment against the companies.

KingSett will be providing an $18 million DIP loan.

KSV was appointed monitor with enhanced powers.

Counsel is Osler for KingSett and Bennett Jones for the monitor.