1436019 Alberta Ltd. and 1496200 Alberta Ltd., operating as The Groundworx Company, were placed into receivership on November 4, 2026, on application by Royal Bank of Canada, owed approximately $7.7 million plus interest and costs. Justice G.S. Dunlop of the Court of King's Bench of Alberta appointed MNP Ltd. as receiver and manager over the companies' assets, undertakings and properties, including specialized crushing and screening equipment and real estate in Leduc, Alberta, after RBC raised concerns about the companies' deteriorating financial position, their inability to fund payroll and the potential erosion of its collateral.
Groundworx operates a construction equipment supply business from Leduc, specializing in the sale, rental and lease of crushing, screening, shredding, grinding and conveying equipment and parts. Its customers are primarily located in Alberta, Saskatchewan and British Columbia. 1436019 Alberta Ltd. operates the business and owns the equipment, while 1496200 Alberta Ltd. owns the approximately 2.27-acre property from which the business operates and where most of its assets are stored.
According to RBC, Groundworx owed the bank approximately $7.69 million as of October 23, 2026, across numerous credit facilities. The lending relationship had been amended repeatedly, including extensions of various equipment loan maturities during 2025 and 2026. The companies nevertheless failed to resolve their financial difficulties or complete a refinancing acceptable to RBC. On September 17, RBC demanded repayment and delivered notices of intention to enforce its security. The amounts demanded remained unpaid.
RBC subsequently moved to secure its collateral. On October 2, through Serv-it Bailiff Services Inc., the bank seized personal property belonging to the companies at their Leduc premises, including a substantial quantity of heavy equipment. According to RBC, company representatives failed or refused to provide a complete equipment list, identify the location of assets held elsewhere or sign a bailee's undertaking concerning the seized equipment. Although representatives acknowledged the existence of a storage yard in Chilliwack, British Columbia, RBC said they had not disclosed the precise location of the equipment stored there, raising concerns about its ability to locate and preserve its security.
The companies' liquidity problems also threatened their ability to continue operating. RBC told the Court that management had repeatedly advised, through legal counsel, that the business could not meet ordinary operating expenses, including payroll, without further advances beyond its authorized borrowing limits. The bank warned that employees could leave imminently, jeopardizing the maintenance, operation and value of specialized equipment requiring experienced personnel and appropriate safety oversight. Having already provided the companies with time to pursue restructuring and refinancing alternatives, RBC said it had lost confidence in management's ability to repay the debt or implement a viable solution without court intervention.
MNP is the receiver. Counsel includes Dentons for RBC and Burnet, Duckworth & Palmer for the receiver.
