Symphony Homes gets CCAA protection to preserve Burnaby townhouse project

Symphony Homes (Moonlight Sonata) Limited and four related British Columbia companies obtained Companies’ Creditors Arrangement Act protection on June 17, 2026, as they seek financing to complete the partially-constructed Moonlight Sonata residential development in Burnaby.

The petitioners are part of the Symphony Homes group, a Greater Vancouver residential developer. Their principal asset is a 2.87-acre property at 3588 Wayburne Drive, where the planned 130-unit Moonlight Sonata project consists of 90 for-sale townhomes and 40 rental townhomes. Construction has advanced only on Phase 1A, comprising 51 for-sale units. Of those homes, 26 are subject to presale agreements with contracted proceeds of approximately $35.58 million, while 25 remain unsold. Management reported that Phase 1A was approximately 78% complete overall, with underground work approximately 95% complete. The presale agreements permit purchasers to rescind if construction is not completed by May 2027.

The restructuring followed a breakdown in the petitioners’ relationship with KingSett Mortgage Corporation, their senior construction lender. KingSett agreed to provide credit facilities with an aggregate principal amount of $95.3 million and had advanced approximately $52.54 million by December 16, 2025. Funding was suspended in late 2025, leaving the project largely inactive and forcing the petitioners to fund limited work and site-preservation costs themselves. KingSett formally demanded payment on May 4, 2026, requiring repayment by May 14 and claiming approximately $59.12 million. By May 31, the monitor reported that KingSett’s indebtedness had increased to approximately $59.6 million and remained immediately due.

The funding suspension left the project without operating revenue or sufficient liquidity to meet obligations as they came due. There are 25 construction liens registered against the development lands totaling approximately $7.5 million, along with approximately $2.3 million of unsecured obligations in the debtors’ books and records. A preliminary creditor list prepared as at June 17 reported approximately $66.08 million of total claims, comprising approximately $60.60 million of secured debt (approximately $59.6 million to KingSett and $1 million to TD Bank), and $5.48 million of unsecured and other claims.

The immediate plan is to preserve the site while the debtors prepare an updated construction budget and a detailed remobilization strategy. Construction reportedly cannot restart until the debtors re-engage their cost consultant, assess the partially completed work and develop a practical plan for bringing trades and consultants back to the site. KingSett is providing a DIP loan in the interim period to maintain the status quo until the construction budgets and remobilization plans are completed.

AlixPartners is the monitor. Counsel includes McEwan Cooper Kirkpatrick for the companies, Osler for the monitor, and Fasken for KingSett.