Drexler Construction placed into receivership

Drexler Construction Limited and Down Under Pipe and Cable Locating Ltd. were placed into receivership on September 15, 2026, on application by secured creditor Kevin Drexler Holdings Inc., with Grant Thornton Limited appointed receiver. The Rockwood, Ontario-based companies provide excavation, utility locating and installation, concrete, sewer and waterworks services.

The proceedings follow a series of defaults under a revolving credit facility originally provided by Mitsubishi HC Capital Canada Inc. in 2022. After negotiations over a forbearance failed, Kevin Drexler Holdings purchased the loan and security from Mitsubishi in November 2024 in an effort to avoid enforcement. Drexler Construction subsequently missed or underpaid substantially all required interest payments, with no payments made since May 13, 2026. Approximately $1.55 million was owing to Kevin Drexler Holdings as of July 31.

The financial problems extend well beyond that loan. Grant Thornton reported approximately $13.2 million of total liabilities, including $6.47 million of secured debt, approximately $2.33 million owing to CRA for source deductions and GST/HST, $244,769 of priority claims and $4.11 million of unsecured debt. Management told the receiver that the CRA arrears arose primarily from insufficient operating cash flow, as well as accounting issues involving GST/HST input tax credits dating back to 2021.

The companies are now winding down. Staff has been reduced to a skeleton crew, no new projects are being taken on, and Grant Thornton supported completing the one remaining project, which had approximately $200,000 of billings left against an estimated $75,000 of additional supplier costs.

Thornton Grout Finnigan acts for Kevin Drexler Holdings and is authorized to act for the receiver where no conflict exists.