Excavation National files NOI with RBC support

Excavation National Inc., a Laval, Quebec headquartered construction company, filed a notice of intention to make a proposal on December 4, 2025, with KPMG Inc. appointed as licensed insolvency trustee. The statutory stay commenced on filing, subject to the secured creditor’s enforcement position described below.

Excavation’s operations focus on excavation and bulk material transport for public and private construction projects. As of the NOI filing, the company was active on 16 projects and employed 60 full-time staff, supplemented by subcontractors and suppliers. Principal assets consist of equipment, inventories, and accounts receivable.

The company’s primary lender is the Royal Bank of Canada, which provides a short-term operating facility and holds a conventional movable hypothec over all assets. On June 23, 2025, RBC advised it would terminate the banking relationship and recall all advances effective September 22, 2025, issuing notices under section 244 of the Bankruptcy and Insolvency Act. Between June 23 and December 3, 2025, the parties met repeatedly and agreed on a strategy that paired an NOI filing with completion of in-progress projects, supported by interim lender funding.

That strategy was formalized in a support and forbearance agreement dated December 3, 2025, under which RBC temporarily agreed, subject to conditions, to suspend enforcement, continue funding working capital, and support the NOI through January 30, 2026, with a re-evaluation at that time. The debtor intends to seek an extension of the forbearance into mid-February.

Financial stress is tied to liquidity constraints and the mechanics of Quebec construction liens. As of the NOI date, the debtor estimated pre-filing “denounced accounts” at slightly more than $3.8 million across 33 projects, rising to approximately $3.9 million as of December 5, 2025. These amounts reflect subcontractor claims that, if unpaid, can crystallize as legal hypothecs on project properties, blocking collections from owners. Management and the trustee concluded that selective payment of denounced accounts was necessary to obtain releases, unlock receivables, and complete remaining projects.

Operationally, the company has continued excavation and transport work post-NOI, paid post-filing rent and wages, tightened discretionary spending, and focused on collections. Cash-flow reporting shows timing gaps in collections during the initial post-filing period. The current stay expires January 3, 2026. The debtor has sought an extension through February 17, 2026 to complete projects and advance a viable proposal.

Hébert Miller Avocats is counsel for the company.