RBC secures bankruptcy order against 145 Golden Drive Ltd. after court rejects broader applications

On December 23, 2025, the Supreme Court of British Columbia adjudged 145 Golden Drive Ltd. bankrupt on the application of Royal Bank of Canada. Justice Michael Stephens granted the bankruptcy order after concluding that the company had ceased to meet its liabilities generally as they became due. The order was issued following multiple hearing dates in August and September 2025 and was filed on January 2, 2026. BDO Canada Limited was appointed as Licensed Insolvency Trustee, subject to creditor affirmation at the first meeting of creditors scheduled for January 23, 2026.

145 Golden Drive Ltd. is a British Columbia company that owned a 6.6 acre industrial property located at 145 Golden Drive in the Mayfair Industrial Park in Coquitlam, British Columbia. The property served as the head office location for Whitewater Concrete, a construction business operated by related entities within the Smith family corporate group. The company formed part of a broader network of development and construction companies owned or controlled by Craig Smith and Kyle Smith, many of which had previously been placed into receivership.

Royal Bank of Canada obtained a judgment of approximately $11.6 million against 145 Golden Drive Ltd. in prior proceedings. The company did not dispute that judgment. In addition to the RBC indebtedness, evidence before the court showed that the company had accumulated significant unsecured liabilities, including unpaid tax obligations to the Canada Revenue Agency of $26,729 and unsecured creditor claims totaling approximately $8.6 million.

The industrial property was sold in May 2025 by a court-appointed receiver for $21.2 million following a competitive marketing process that attracted multiple bids, including interest from the City of Coquitlam. Sale proceeds were largely applied to repay the first mortgage held by the Business Development Bank of Canada. Despite that sale, the company remained unable to satisfy its remaining obligations as they fell due.

Justice Stephens emphasized that bankruptcy is a serious and final remedy that requires clear proof that a debtor has stopped paying its debts generally, not merely a single creditor. While the court dismissed RBC’s parallel applications to bankrupt two related Smith family holding companies, it found the evidentiary record against 145 Golden Drive Ltd. materially different. The presence of multiple unpaid creditors, combined with the unsatisfied RBC judgment, established that the statutory test had been met. The court rejected arguments that ongoing corporate appeals or related proceedings insulated the company from bankruptcy relief.

RBC was represented by Fasken Martineau DuMoulin LLP, while the company was represented by Brian C. Markus Law Corporation.