Square Nine wins CCAA protection after competing lender receivership push

Square Nine King George Development Ltd. and Square Nine Builders Inc. secured creditor protection on November 13, 2025, after Justice Walker of the British Columbia Supreme Court issued an Initial Order that placed the companies under the supervision of FTI Consulting Canada Inc. as Monitor and halted creditor enforcement. The order came in the context of cross applications in which Cameron Stephens Mortgage Capital sought to move the Belvedere tower into receivership, while Square Nine sought restructuring protection instead.

Square Nine is the developer behind Belvedere, a 30-storey residential tower in Surrey that reached substantial completion in February 2025. The project includes 275 residential units and 5 commercial units. 40 residential units remain unsold, while the commercial units are already under contract and scheduled to close in January 2026. The most recent appraisal pegs the value of the unsold residential units at approximately $27.4 million. The commercial units are expected to generate $8.1 million.

Financial strain built steadily. Square Nine owes roughly $22.2 million to secured lenders, including Cameron Stephens, AMRN Holding, and 1137571 B.C. Ltd. It also owes approximately $16.7 million to unsecured creditors, including $6.3 million to trade contractors and $6 million to the Canada Revenue Agency. Liquidity tightened as market conditions weakened and presale purchasers failed to close. Pressure intensified through 2025 as construction obligations continued while sale proceeds lagged. The company attempted several mitigation strategies. A discounted sales event on May 31 led to 38 unit sales and generated about $18.5 million. Management also entered agreements allowing certain trade contractors to convert balances owing into deposits toward unit purchases, adding another $3 million in proceeds. These measures were not enough to stabilize the project once Cameron Stephens brought a receivership application, prompting a competing CCAA application, which was successful.

The Initial Order allows the Petitioners to continue operating, retain employees, pay wages, maintain insurance, and pay ordinary course expenses under the Monitor’s oversight. It also stabilizes the project’s contractual framework, which remains important for preserving both value and purchaser confidence. The Monitor expects an orderly sale of the remaining residential units to be central to the recovery strategy, while the commercial units will close as contracted in January 2026. Management also aims to continue exploring refinancing options, although no binding refinancing agreement has been secured.

Professionals include include McEwan Partners for Square Nine, Cassels for Cameron Stephens, Dentons for the Monitor, and McCarthy Tétrault for C3 GP Ltd. and C3 Development Limited Partnership.