1035638 B.C. Ltd. and Kainos Building Group Ltd., companies associated with the Kainos Development real estate group, were granted protection under the CCAA on November 9, 2026, on application by National Bank of Canada, owed approximately $20.7 million. Justice Blake of the British Columbia Supreme Court appointed FTI Consulting Canada Inc. as monitor with enhanced powers to take control of the companies' assets and operations, including a stalled mixed-use development in Squamish that is approximately 76% complete. The Court also authorized a $1.2 million interim financing facility from National Bank to stabilize the properties and assess potential recovery strategies.
The proceedings concern two properties in downtown Squamish. 1035638 B.C. Ltd. owns the lands at 38044 Second Avenue, where the companies have been developing Amaji 2, a 7-storey steel-frame building comprising 38 residential units and two commercial units. Kainos Building Group Ltd. owns nearby properties at 1358, 1362 and 1366 Main Street, acquired in 2021 for a proposed mixed-use development. Those lands remain undeveloped and have been used as a staging area for Amaji 2. The project has 22 residential units and one commercial unit under presale contracts with aggregate purchase prices of approximately $18.1 million, excluding GST, while another 16 residential units and one commercial unit remain unsold.
The Amaji 2 project encountered significant delays and cost overruns beginning with the District of Squamish's rejection of a proposed wood-frame design, which required the development to be redesigned using structural steel. Construction began in December 2023, but further delays arose from the approval process for off-site servicing arrangements and the repricing of construction contracts. VPAC Construction Group Ltd., the general contractor, had previously worked on the neighbouring Amaji 1 development, although the developers suggested that its limited experience with structural steel construction contributed to the difficulties. The original December 2025 completion target was subsequently pushed to December 2026.
National Bank suspended further construction advances in early 2026, citing unpaid property taxes, deficient financial reporting, construction lien issues and the developers' failure to inject additional equity to cover cost overruns. Subcontractors began leaving the site in March, and VPAC demobilized in May. Both National Bank loans matured without repayment, with approximately $16.6 million owing under the Amaji 2 financing and approximately $4.1 million under the Main Street mortgage as of September 15. Bancorp, a second-ranking mortgage lender on Amaji 2, was owed approximately $3.4 million, while VPAC registered a builders lien for approximately $2.7 million. The project also remained without permanent electrical power because of an outstanding obligation to BC Hydro.
National Bank said it had lost confidence in the developers' ability to manage the project and their financial affairs. Neither the companies nor their principals had additional equity available, and National Bank was unwilling to advance further funding while existing management remained in control. Rather than immediately pursuing a conventional receivership, the bank sought creditor-led CCAA proceedings with an independent monitor exercising enhanced powers to stabilize the project and determine the best recovery strategy.
Under the initial order, FTI has authority to take possession of the properties, manage operations, retain contractors, control receipts and disbursements, and market assets for sale, subject to court approval where required. The monitor will assess whether completing Amaji 2 and selling the individual units would generate better recoveries than selling the properties in their current condition.
FTI is the monitor with enhanced powers. Counsel includes Owen Bird Law Corporation for National Bank, McCarthy Tétrault LLP for the monitor, and Fasken for Bancorp.
