KS Property Management Inc., the registered owner of 16 bare strata lots in a completed development called Osprey Landing in Wardner, British Columbia and a large development parcel in Castlegar, British Columbia, was placed in receivership on October 28 on application by Kootenay Savings Credit Union.

The company was incorporated by the Credit Union in 2018 to acquire the shares of the original developers, Osprey Landing Development Corp. and Twin River Estates Ltd., through a BIA proposal. Following the acquisition, Osprey and Twin River Estates (which subsequently amalgamated with the company) gave mortgages and security to the Credit Union which are the subject of the receivership proceedings.

The company was a wholly-owned subsidiary of the Credit Union until late 2023, when the BC Financial Services Authority mandated that the Credit Union divest itself of its shares in the company. The Credit Union sold all of its shares to 0997677 B.C. Ltd. dba CDG Enterprises (the general contractor on the Twin River development) in a vendor take back transaction, with CDG acquiring the shares for $10 and causing the company to give the Credit Union a promissory note for $15 million. The intention was that CDG, as the new owner of company, would sell the remaining lands in Osprey, complete the Twin River development and begin marketing and selling the lots.

As part of the share sale to CDG, the Credit Union became a minority shareholder of CDG and advanced approximately $2 million in shareholder loans to fund operations. Unfortunately, this money disappeared, leaving unpaid trades and no money to fund the company’s operations and the completion of the Twin River development.

Deloitte is the receiver.

Counsel for the Credit Union is MCM Law (formerly McMillan Dubo).